Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.21.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2020
Income taxes  
Schedule of Components of Income Tax Expense (Benefit)

The components of the income tax provision (benefit) are as follows:

For the Year Ended December 31, 

($ in thousands)

    

2020

    

2019

Current

  

  

Federal

$

$

State

 

136

 

Deferred

 

  

 

  

Federal

 

 

State

 

 

Total

$

136

$

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)

2020

2019

Deferred tax assets:

    

  

    

  

Net operating loss carryforwards

$

152,295

$

125,657

Amortization of license fees

 

20,628

 

17,077

Amortization of in-process R&D

 

415

 

449

Stock compensation

 

14,732

 

13,280

Lease liability

 

7,306

 

7,454

Accruals and reserves

 

1,570

 

1,810

Tax credits

 

16,326

 

12,716

Startup costs

 

54

 

58

Unrealized gain/loss on investments

 

1,075

 

716

State taxes

 

41

 

Reserve on Sales Return, Discount and Bad Debt

1,455

Total deferred tax assets

 

215,897

 

179,217

Less: valuation allowance

 

(203,930)

 

(168,223)

Net deferred tax assets

$

11,967

$

10,994

Deferred tax liabilities:

 

  

 

  

Right of use asset

$

(6,050)

$

(6,280)

Fair Value adjustment on investment in Caelum

 

(4,804)

(2,879)

Basis in subsidiary

 

(1,113)

 

(1,835)

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, 

 

    

2020

    

2019

 

Percentage of pre-tax income:

  

  

U.S. federal statutory income tax rate

 

21

%  

21

%

State taxes, net of federal benefit

 

11

%  

12

%

Credits

 

4

%  

3

%

Non-deductible items

 

(1)

%  

%

Provision to return

 

1

%  

1

%

Stock based compensation shortfall

 

(1)

%  

(1)

%

Change in state rate

 

%  

3

%

Deconsolidation of Caelum

 

%  

(3)

%

Change in valuation allowance

 

(35)

%  

(36)

%

Change in subsidiary basis

 

1

%  

(1)

%

Other

 

(1)

%  

1

%

Effective income tax rate

 

%  

%