Income Taxes

 

our net deferred tax assets at and are shown below (in thousands). A valuation allowance of million and million has been established to offset the net deferred tax assets as of and respectively, due to uncertainties surrounding our ability to generate future taxable income to realize these assets.

and due to the following (in thousands):

we had Federal and California tax net operating loss carryforwards of approximately  million and  million, respectively. The Federal and California tax loss carryforwards will begin to expire in and respectively, unless previously utilized.

we also had Federal and California research and development tax credit carryforwards of approximately million and million, respectively. The Federal credit carryforward will begin to expire in unless previously utilized and the California credit will carry forward indefinitely until utilized.

analyzed filing positions in all of the Federal and state jurisdictions where we are required to file income tax returns for all open tax years in these jurisdictions. Our analysis concluded that, due to past ownership changes, our deferred tax assets for net operating losses and research and development credits will be subject to an annual limitation. As such, million of net operating losses will expire and of research and development credits will expire for Federal purposes as a result of the multiple ownership changes which occurred in prior years. As a result of the completion of the analysis, we have included the net operating loss and research and development credit carryforward net of the amount to be expired as a deferred tax asset. However, we have determined that sufficient future taxable income be available to realize the deferred tax assets for net operating loss and research and development credit carryforwards. Therefore, we have recognized a full valuation allowance for these deferred tax assets.

updated our Section and analyses through and determined that there has been a subsequent ownership change since The completion of our Section and analyses through does prevent further limitations to our net operating loss and research and development credit carryforwards. Additional limitations arise if we experience an ownership change in subsequent periods.

December 22, 2017,

We estimate there is impact to net income tax expense or income tax payable as a result of this legislation for the year ended as we recognized a full valuation allowance on the deferred tax assets. However, we will continue to make and refine our calculations as additional analysis is completed. In addition, our estimates also be affected as we gain a more thorough understanding of the tax law.

re, which is generally The provisional amount recorded related to the remeasurement of our deferred tax balance was million, of which is fully offset by a corresponding decrease to our valuation allowance. However, we are still analyzing certain aspects of the Act and refining our calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts.

our unrecognized tax benefits is shown below (in thousands).

twelve

not

Due to the existence of the valuation allowance, future changes in unrecognized tax benefits will impact our effective tax rate.

subject to taxation in the United States and state jurisdictions. Our tax years for and forward are subject to examination by the IRS and tax years and forward are subject to examination by California tax authorities. Due to the carryforward of unutilized net operating losses and research and development credits, the IRS and the California tax authorities go back to the taxable years in which the net operating losses and research and development credits became available to recompute such amounts, but redetermine the tax liability for such years. We are currently under examination by any taxing authorities.

recognize interest and penalties related to income tax matters in income tax expense. For the years ended we did recognize any interest or penalties.