Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2015
Income Tax Disclosure [Abstract]  
Reconciliation of income tax benefit

 A reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate is as follows:

    Year Ended December 31,  
    2015     2014  
             
Statutory federal income tax rate     34.0 %     34.0 %
Change in fair value of warrant liability     (5.2) %     10.7 %
State income taxes, net of federal benefit     0.1 %     0.4 %
Tax credits     0.3 %     0.9 %
Change in valuation allowance     (12.5) %     (11.2) %
Permanent differences     (0.8) %     0.7 %
 State rate adjustment     3.3 %        
Other     4.4 %     0.1 %
                 
Effective rate     23.6 %     34.1 %

 

 

 

Significant components of deferred income taxes

Significant components of the Company’s deferred income taxes at December 31, 2015 and 2014 are shown below (in thousands):

 

    December 31,  
    2015     2014  
Deferred Tax Assets:            
 Net operating loss carryforwards   $ 14,273     $ 7,276  
 Compensation     1,098       14  
 Research and development tax credits     972       835  
 Other     128       65  
                 
Total gross deferred tax assets     16,471       8,190  
                 
Deferred Tax Liabilities                
 Unrealized gain on marketable securities     -       (185 )
 Property and equipment     (5 )     (18 )
 Acquired in-process research and development     (49,875 )     (65,195 )
                 
Total Deferred Tax Liabilities     (49,880 )     (65,398 )
                 
Net deferred tax assets     (33,409 )     (57,208 )
 Valuation allowance     (16,466 )     (7,986 )
                 
Net Deferred Tax Liability   $ (49,875 )   $ (65,194 )

 

Net deferred tax liability

 A reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate is as follows:

 

    Year Ended December 31,  
    2015     2014  
             
Statutory federal income tax rate     34.0 %     34.0 %
Change in fair value of warrant liability     -5.2 %     10.7 %
State income taxes, net of federal benefit     0.1 %     0.4 %
Tax credits     0.3 %     0.9 %
Change in valuation allowance     -12.5 %     -11.2 %
Permanent differences     -0.8 %     -0.7 %
 State rate adjustment     3.3 %        
Other     4.4 %     -0.1 %
                 
Effective rate     23.6 %     34.1 %