3. Income Taxes

The Company reported book losses for the three and nine months ended September 30, 2016. The Company reported a full valuation allowance against its net deferred U.S. income tax assets at September 30, 2017 and December 31, 2016. All evidence and information available suggests that the Company will maintain the full valuation allowance in 2017.  Therefore, for the three and nine months ended September 30, 2017, there was no income tax benefit recorded for the U.S. pre-tax book losses; however, the Company recorded $12 thousand in income tax benefit related to foreign taxes for the nine months ended September 30, 2017. There was no income tax benefit recorded for the U.S. pre-tax book losses; however, the Company recorded $27 thousand in income tax expense related to foreign taxes for the three and nine months ended September 30, 2016.