SEQUANS COMMUNICATIONS | CIK:0001383395 | 3

  • Filed: 4/12/2018
  • Entity registrant name: SEQUANS COMMUNICATIONS (CIK: 0001383395)
  • Generator: Workiva (WebFilings)
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/1383395/000138339518000015/0001383395-18-000015-index.htm
  • XBRL Instance: http://www.sec.gov/Archives/edgar/data/1383395/000138339518000015/sqns-20171231.xml
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    • ifrs-full:DisclosureOfIncomeTaxExplanatory

    Income tax
    The major components of income tax expense are:
     
     
    Year ended December 31,
     
     
    2015
     
    2016
     
    2017
     
     
    (in thousands)
    Consolidated Statement of Operations
     
     
     
     
     
     
    Current income tax
     
    $
    311

     
    $
    272

     
    $
    273

    Deferred income tax
     
    6

     
    12

     
    27

    Income tax expense reported in the Consolidated Statement of Operations
     
    $
    317

     
    $
    284

     
    $
    300


    A reconciliation of income taxes computed at the French statutory rate (34.43% from the year ended December 31, 2015, 2016 and 2017) to the income tax expense (benefit) is as follows:
     
     
    Year ended December 31,
     
     
    2015
     
    2016
     
    2017
     
     
    (in thousands)
    Profit (loss) before income taxes
     
    $
    (27,085
    )
     
    $
    (24,503
    )
     
    $
    (25,860
    )
    At France’s statutory income tax rate of 34.43%
     
    (9,325
    )
     
    (8,436
    )
     
    (8,904
    )
    Non-deductible share-based payment expense
     
    299

     
    386

     
    564

    Tax credits
     
    (915
    )
     
    (676
    )
     
    (1,152
    )
    Unrecognized benefit of tax loss carryforwards and permanent differences
     
    10,258

     
    9,010

     
    9,792

    Income tax expense reported in the Consolidated Statement of Operations
     
    $
    317

     
    $
    284

     
    $
    300


    As of December 31, 2017 the Company had accumulated tax losses which arose in France of $244,918,000 that are available for offset against future taxable profits of Sequans Communications S.A within a limit of one million euro per year, plus 50% of the profit exceeding this limit. Remaining unapplied losses would continue to be carried forward indefinitely.
    Deferred tax assets were recognized in 2015, 2016 and 2017 only to the extent that deferred tax liabilities existed in the same jurisdiction.