3. Income Taxes

The Company reported book losses for the three and six months ended June 30, 2018. The Company reported a full valuation allowance against its net deferred U.S. income tax assets at June 30, 2018 and December 31, 2017. All evidence and information available suggests that the Company will maintain the full valuation allowance in 2018.  Therefore, for the three and six months ended June 30, 2018, there was no income tax benefit recorded for the U.S. pre-tax book losses and the Company recorded no income tax expense related to foreign taxes for the three and six months ended June 30, 2018 months.