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our operating results fall below the expectations of investors or securities analysts, the price of our common stock could decline substantially. Furthermore, any fluctuations in our
operating results may, in turn, cause the price of our stock to fluctuate substantially. We believe that quarterly comparisons of our financial results are not necessarily meaningful and should not be
relied upon as an indication of our future performance.
the past, following periods of volatility in the market price of a company's securities, securities class-action litigation often has been instituted against that company. Such
litigation, if instituted
against us, could cause us to incur substantial costs to defend such claims and divert management's attention and resources, which could seriously harm our business, financial condition, results of
operations and prospects.
Our ability to use net operating losses to offset future taxable income may be subject to limitations.
As of December 31, 2015 and 2016, we had $16.5 million and $34.6 million, respectively, of federal net operating loss
carryforwards available to offset future taxable income, which carryforwards expire at various dates through 2036 if not utilized prior to then. These net operating loss carryforwards could expire
unused and be unavailable to offset future income tax liabilities. Under the newly enacted federal income tax law, federal net operating losses incurred in 2018 and in future years may be carried
forward indefinitely, but the deductibility of such federal net operating losses is limited. It is uncertain if and to what extent various states will conform to the newly enacted federal tax law. In
addition, under Section 382 and 383 of the Internal Revenue Code of 1986, as amended, or the Code, and corresponding provisions of state law, if a corporation undergoes an "ownership change",
which is generally defined as a greater than 50 percentage point change, by value, in its equity ownership over a three-year period, the corporation's ability to use its pre-change net
operating loss carryforwards and other pre-change tax attributes to offset its post-change income or taxes may be limited. We experienced two ownership changes prior to January 31, 2017, and
may experience additional ownership changes, including as a result of this offering. As a result, if we earn net taxable income, our ability to use our pre-change net operating loss carryforwards to
offset U.S. federal taxable income will be subject to limitations, which could potentially result in increased future tax liability to us.
Future sales of our common stock, or the perception that such sales may occur, could depress our common stock
The company and its officers, directors, and certain of the company's stockholders have agreed with the underwriters, subject to certain
exceptions, not to dispose of or hedge any of their common stock or securities convertible into or exchangeable for shares of common stock during the period from the date of this prospectus supplement
continuing through the date that is 90 days after the date of this prospectus supplement, except with the prior written consent of the representatives. When the lock-up period expires, we and
our securityholders subject to a lock-up agreement or market stand-off agreement will be able to sell our shares in the public market.