Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

A reconciliation of income tax expense (benefit) for the years ended December 31, 2016, 2015, and 2014 is as follows:

	Year Ended December 31,
	2016			2015			2014
Current:
Federal	$			$	-		$	-
State		19			19			2
Total current income tax expense		19			19			2

Deferred:
Federal		(32,421	)		(12,001	)		(51	)
State		3,008			(3,266	)		(3	)
Total deferred income tax expense (benefit)		(29,413	)		(15,267	)		(54	)
Total income tax expense (benefit)		(29,394	)	$	(15,248	)	$	(52	)

Significant components of the Company’s deferred income taxes at December 31, 2016 and 2015 are shown below (in thousands):

	December 31,
	2016			2015
Deferred Tax Assets:
Net operating loss carryforwards	$	20,633		$	14,273
Compensation		1,323			1,098
Research and development tax credits		1,390			972
Property and equipment		22			-
Other		545			128

Total gross deferred tax assets		23,912			16,471

Deferred Tax Liabilities
Property and equipment		-			(5	)
Acquired in-process research and development		(20,462	)		(49,875	)

Total Deferred Tax Liabilities		(20,462	)		(49,880	)

Net deferred tax assets		3,450			(33,409	)
Valuation allowance		(23,912	)		(16,466	)

Net Deferred Tax Liability	$	(20,462	)	$	(49,875	)

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

	Year Ended December 31,
	2016			2015			2014

Statutory federal income tax rate		34.0	%		34	%		34.0	%
Change in fair value of warrant liability		0.9	%		(5.2	)%		10.7	%
State income taxes, net of federal benefit		4.8	%		0.1	%		0.4	%
Tax credits		0.4	%		0.3	%		0.9	%
Change in valuation allowance		(7.3	)%		(12.5	)%		(11.2	)%
Permanent differences		-			(0.8	)%		(0.7	)%
State rate adjustment		(5.3	%)		3.3	%		-
Other		0.9	%		4.4	%		0.1	%

Effective rate		28.3	%		23.6	%		23.6	%