Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.19.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
The components of the income tax provision (benefit) are as follows:
 
 
 
For the years ended December 31,
 
($ in thousands)
 
2018
 
 
2017
 
 
 
 
 
 
 
 
Current
 
 
 
 
 
 
 
 
Federal
 
$
 
 
$
1,074
 
State
 
 
 
 
 
439
 
Deferred
 
 
 
 
 
 
 
 
Federal
 
 
 
 
 
 
State
 
 
 
 
 
 
Total
 
$
 
 
$
1,513
 
Schedule of Deferred Tax Assets and Liabilities
The significant components of the Company’s deferred taxes consist of the following:
  
 
 
As of December 31,
 
($ in thousands)
 
2018
 
 
2017
 
Deferred tax assets:
 
 
 
 
 
 
 
 
Net operating loss carryforwards
 
$
93,823
 
 
$
71,616
 
Amortization of license fees
 
 
12,552
 
 
 
13,648
 
Amortization of in-process R&D
 
 
420
 
 
 
557
 
Stock compensation
 
 
10,404
 
 
 
10,682
 
Accruals and reserves
 
 
2,267
 
 
 
5,166
 
Tax credits
 
 
10,207
 
 
 
7,376
 
Startup costs
 
 
55
 
 
 
75
 
Unrealized gain/loss on investments
 
 
805
 
 
 
 
Startup costs
 
 
2,535
 
 
 
 
Total deferred tax assets
 
 
133,068
 
 
 
109,120
 
Less: valuation allowance
 
 
(132,114
)
 
 
(101,645
)
Net deferred tax assets
 
$
954
 
 
$
7,475
 
 
 
 
 
 
 
 
 
 
Deferred tax liabilities:
 
 
 
 
 
 
 
 
Unrealized gain/loss on investment
 
$
 
 
$
(685
Intangibles
 
 
 
 
 
(3,321
)
Basis in subsidiary
 
 
(954
)
 
 
(3,469
)
Total deferred tax assets, net
 
$
 
 
$
 
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of the statutory tax rates and the effective tax rates is as follows: 
 
 
 
For the Year Ended December 31,
 
 
 
2018
 
 
2017
 
Percentage of pre-tax income:
 
 
 
 
 
 
 
 
U.S. federal statutory income tax rate
 
 
21
%
 
 
35
%
State taxes, net of federal benefit
 
 
5
%
 
 
8
%
Credits
 
 
3
%
 
 
1
%
Non-deductible items
 
 
%
 
 
(2
)%
Provision to return
 
 
(1
)%
 
 
1
%
Stock based compensation shortfall
 
 
(1
)%
 
 
(1
)%
Change in federal rate
 
 
%
 
 
(43
)%
Change in state rate
 
 
(3
)%
 
 
2
%
Intercompany elimination adjustments
 
 
%
 
 
(3
)%
National Disposal
 
 
%
 
 
%
Change in fair value of warrants
 
 
%
 
 
3
%
Change in valuation allowance
 
 
(25
)
%
 
 
(7
)%
Change in subsidiary basis
 
 
1
%
 
 
4
%
Other
 
 
%
 
 
%
Effective income tax rate
 
 
%
 
 
(2
)%