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

 

—

%  

—

%

​