Entity information:
NOTE 12 
-
TAXES ON INCOME
 
   
A.
Tax rates applicable to the income of the Israeli subsidiary:
 
BCT is subject to a tax rate of 24% in 2017. In 2018 the tax rate is expected to decrease to 23%.
 
Such tax rate changes have no significant impact on the Company's financial statements. 
 
B.
Deferred income taxes:
 
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax assets are as follows:
 
 
 
December 31,
 
 
 
2017
 
2016
 
 
 
 
 
 
 
 
 
 
 
U.S. $ in thousands
 
 
 
 
 
 
 
 
 
Operating loss carryforward
 
$
51,107
 
$
39,967
 
 
 
 
 
 
 
 
 
Net deferred tax asset before valuation allowance
 
 
14,090
 
 
13,333
 
Valuation allowance
 
 
(14,090)
 
 
(13,333)
 
Net deferred tax asset
 
$
-
 
$
-
 
 
As of December 31, 2017, the Company has provided valuation allowances of $14,090 in respect of deferred tax assets resulting from tax loss carryforward and other temporary differences. Management currently believes that because the Company has a history of losses, it is more likely than not that the deferred tax regarding the loss carryforward and other temporary differences will not be realized in the foreseeable future.
 
C.
Available carryforward tax losses:
 
As of December 31, 2017, the Company has an accumulated tax loss carryforward of approximately $51,107. Carryforward tax losses in Israel are of unlimited duration and carryforward tax losses in the U.S. can be carried forward and offset against taxable income in the future for a period of 20 years. Utilization of U.S. net operating losses may be subject to substantial annual limitations due to the "change in ownership" provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitation may result in the expiration of net operating losses before utilization.
 
D.
Loss from continuing operations, before taxes on income, consists of the following:
 
 
 
Year ended December 31,
 
 
 
2017
 
2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. $ in thousands
 
 
 
 
 
 
 
 
 
United States
 
$
(2,532)
 
$
(1,451)
 
Israel
 
 
(2,420)
 
 
(3,531)
 
 
 
$
(4,952)
 
$
(4,982)
 
 
E.
Due to the Company’s cumulative losses, the effect of ASC 740 as codified from ASC 740-10 is not material.
 
F.
On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was signed into law in the United States. The Tax Act, among other provisions, introduces changes in the U.S corporate tax rate, business related exclusions and deductions and credits, and has internationally tax consequences for companies that operate international. Most of the changes introduced in the Tax Act are effective beginning on January 1, 2018.
 
G.
As a result of the tax act the Company is subject to a reduced blended U.S. tax rate of 34% starting on January 1, 2018. The other effects of the Tax Act provisions are still being identified and evaluated by Management.