3. Income Taxes

The Company is reporting a book loss for the three months ended March 31, 2017. The Company reported a full valuation allowance against its net deferred U.S. income tax assets at March 31, 2017 and December 31, 2016. All evidence and information available suggests that the Company will maintain the full valuation allowance in 2017.  Therefore, no income tax benefit was recorded for the three months ended March 31, 2017 and 2016 U.S. pre-tax book loss.