Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.23.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income taxes  
Schedule of Components of Income Tax Expense (Benefit)

The components of the income tax provision are as follows:

For the years ended December 31, 

($ in thousands)

    

2022

    

2021

Current

  

  

Federal

$

$

State

 

449

 

473

Deferred

 

  

 

  

Federal

 

 

State

 

 

Total

$

449

$

473

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)

2022

2021

Deferred tax assets:

    

  

    

  

Net operating loss carryforwards

$

198,250

$

180,994

Amortization of license fees

 

30,151

 

31,556

Amortization of in-process R&D

 

334

 

384

Stock compensation

 

13,754

 

13,560

Lease liability

 

7,011

 

6,965

Accruals and reserves

 

3,402

 

2,265

Tax credits

 

33,501

 

23,239

Startup costs

 

42

 

49

Unrealized gain/loss on investments

 

406

 

420

Section 174 R&D expenditure capitalization

34,170

State taxes

192

215

Business interest limitation

2,359

7

Reserve on Sales Return, Discount and Bad Debt

 

2,286

 

1,883

Total deferred tax assets

 

325,858

 

261,537

Less: valuation allowance

 

(317,959)

 

(251,052)

Net deferred tax assets

$

7,899

$

10,485

Deferred tax liabilities:

 

  

 

  

Section 483 imputed interest

$

(92)

$

Debt issuance costs

(347)

Right of use asset

(5,835)

(5,732)

Basis in subsidiary

 

(1,625)

 

(4,753)

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, 

 

    

2022

    

2021

 

Percentage of pre-tax income:

  

  

U.S. federal statutory income tax rate

 

21.00

%  

21.00

%

State taxes, net of federal benefit

 

7.00

%  

10.00

%

Credits

 

4.00

%  

4.00

%

Non-deductible items

 

(1.00)

%  

(3.00)

%

Provision to return

 

2.00

%  

%

Stock based compensation shortfall

 

(1.00)

%  

(1.00)

%

Change in state rate

 

(2.00)

%  

1.00

%

Intercompany elimination adjustments

 

%  

%

Change in valuation allowance

 

(31.00)

%  

(29.00)

%

Change in subsidiary basis

 

%  

(2.00)

%

Other

 

1.00

%  

(1.00)

%

Effective income tax rate

 

%  

%