Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.24.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2023
Income Taxes  
Schedule of Components of Income Tax Expense (Benefit)

Year Ended December 31, 

($ in thousands)

    

2023

    

2022

Current

  

  

Federal

$

33

$

State

 

254

 

449

Deferred

 

 

  

Federal

 

194

 

State

 

39

 

Total

$

521

$

449

Schedule of Deferred Tax Assets and Liabilities

As of December 31, 

($ in thousands)

2023

2022

Deferred tax assets:

    

  

    

  

Net operating loss carryforwards

$

211,329

$

198,250

Amortization of license fees

 

33,996

 

30,151

Amortization of in-process R&D

 

315

 

334

Stock compensation

 

13,184

 

13,754

Lease liability

 

6,477

 

7,011

Accruals and reserves

 

3,897

 

3,402

Tax credits

 

37,894

 

33,501

Startup costs

 

40

 

42

Unrealized gain/loss on investments

 

55

 

406

Section 174 R&D expenditure capitalization

59,238

34,170

State taxes

33

192

Business interest limitation

2,880

2,359

Reserve on Sales Return, Discount and Bad Debt

 

4,556

 

2,286

Total deferred tax assets

 

373,895

 

325,858

Less: valuation allowance

 

(366,375)

 

(317,959)

Net deferred tax assets

$

7,520

$

7,899

Deferred tax liabilities:

 

  

 

  

Section 483 imputed interest

$

(25)

$

(92)

Debt issuance costs

(297)

(347)

Right of use asset

(5,289)

(5,835)

Basis in subsidiary

 

(2,142)

 

(1,625)

Total deferred tax liabilities, net

$

(233)

$

Schedule of Effective Income Tax Rate Reconciliation

For the Year Ended December 31, 

 

    

2023

    

2022

 

Percentage of pre-tax income:

  

  

U.S. federal statutory income tax rate

 

21.0

%  

21.0

%  

State taxes, net of federal benefit

 

10.6

%  

6.7

%  

Credits

 

3.1

%  

4.6

Non-deductible items

 

(0.9)

%  

(0.5)

%

Provision to return

 

(0.7)

%  

1.8

%

Stock based compensation shortfall

 

(2.0)

%  

(1.4)

%

Change in state rate

 

4.1

%  

(1.6)

%

Change in valuation allowance

 

(31.5)

%  

(31.3)

%

Change in subsidiary basis

 

(1.0)

%  

%

Deconsolidation/dissolution of subsidiaries

(2.4)

%  

%

Adjustment for warrants

0.9

%  

0.1

%

Section 162(m) compensation disallowance

(1.2)

%  

(0.8)

%

Other

 

(0.3)

%  

1.2

%

Effective income tax rate

 

(0.3)

%  

(0.2)

%