Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.8.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Loss Before Income Taxes
The Company reported a loss before income taxes consisting of the following (in thousands):
 
Years Ended December 31,
 
2017
 
2016
Domestic
$
(13,840
)
 
$
(8,725
)
Foreign
(2,704
)
 
(13,913
)
Loss before income taxes
$
(16,544
)
 
$
(22,637
)
Components of the Provision (Benefit) for Income Taxes
The components of the provision (benefit) for income taxes are as follows (in thousands):
 
Years Ended December 31,
 
2017
 
2016
Current:
 
 
 
Federal
$
—

 
$
—

State
—

 
—

Foreign
1,103

 
162

Total current
1,103

 
162

Deferred:
 
 
 
Federal
—

 
—

State
—

 
—

Foreign
—

 
—

Total deferred
—

 
—

Provision (benefit) for income taxes
$
1,103

 
$
162

Reconciliation of Federal Statutory Rate to the Effective Tax Rate
The reconciliation of the federal statutory rate to Pieris’ effective tax rate is as follows:
 
2017
 
2016
Federal income tax rate
34.0
 %
 
34.0
 %
Tax Reform - Change in enacted rate
(22.2
)
 
 
Foreign rate differential
(1.2
)
 
(2.9
)
State tax, net of federal benefit
2.4

 
0.9

Permanent items
—

 
(2.3
)
Other
1.8

 
(0.9
)
Withholding tax
—

 
(0.7
)
Change in valuation allowance
(21.5
)
 
(28.8
)
Effective income tax rate
(6.7
)%
 
(0.7
)%
Components of Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities related to net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income taxes purposes were as follows (in thousands):
 
Years Ended December 31,
 
2017
 
2016
Deferred tax assets:
 
 
 
Net operating loss carryforwards
$
22,170

 
$
18,498

Share based awards compensation
1,280

 
1,080

Accrued compensation/other
296


239

Deferred Revenue
1,504

 
—

Total deferred tax assets
25,250

 
19,817

Less: valuation allowance:
(25,250
)
 
(19,817
)
Net deferred tax asset
$
—

 
$
—

Schedule of Reconciliation of Unrecognized Tax Benefits Excluding Impact of Interest and Penalties
The following table sets forth a reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding the impact of interest and penalties, for the years ended December 31, 2017 and 2016 (in thousands):
Unrecognized tax benefits at December 31, 2016
$
5,655

Currency translation adjustment
796

Unrecognized tax benefits at December 31, 2017
$
6,451