Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Components of Deferred Tax Assets and Liabilities

Components of deferred tax assets (liabilities) are as follows:


	December 31,
	2017			2016
Accounts receivable	$	2.1		$	0.5
Inventories		0.6			1.0
Stock options		1.9			2.2
Accrued liabilities		1.0			2.3
Other		0.2			—
Net operating loss carryforwards		16.4			9.8

Total deferred tax assets		22.2			15.8

Depreciation		(0.2	)		(0.2	)
Intangible assets		(3.1	)		(9.0	)

Total deferred tax liabilities		(3.3	)		(9.2	)

Valuation allowance		(18.9	)		(6.6	)

Net deferred tax liability	$	—		$	—

Reconciliation of Tax Computed at Statutory Rate to Income Tax Expenses

The following is a reconciliation of tax computed at the statutory federal rate to the income tax expense in the statements of operations for the years ended December 31, 2017, 2016, and 2015:


	December 31,
	2017						2016						2015
	Amount			%			Amount			%			Amount			%
Tax benefit at statutory federal rate	$	(18.1	)		(34.0	)	$	(0.3	)		(34.0	)	$	(0.8	)		(34.0	)
Change in valuation allowance		7.5			14.1			1.5			178.8			0.4			16.2
Change in income tax rate to 21%		8.8			16.6			—			—			—			—
Non-deductible expenses		2.3			4.3			0.5			57.0			1.1			45.0
Adjustment to net operating loss carryforwards		—			—			—			—			(0.5	)		(21.1	)
Other adjustments		(0.5	)		(0.2	)		(1.7	)		(201.8	)		(0.2	)		(6.1	)

Income tax benefit	$	—			0.8		$	—			—		$	—			—