Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.19.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Schedule of Reconciliation of Income Tax Expense (Benefit)

A reconciliation of income tax expense (benefit) for the years ended December 31, 2018 and 2017 is as follows (in thousands):

 

    2018     2017  
Current:                
Federal   $ -     $ -  
State     -       -  
Total current income tax expense     -       -  
                 
Deferred:                
Federal     (10,347 )     (6,880 )
State     (3,235 )     -  
Total deferred income tax benefit     (13,582 )     (6,880 )
Total income tax benefit   $ (13,582 )   $ (6,880 )
Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred income taxes at December 31, 2018 and 2017 are shown below (in thousands):

 

    2018     2017  
Deferred tax assets:                
Net operating loss carryforwards (i)(ii)   $ 16,849     $ 15,003  
Compensation     819       961  
Research and development tax credits (iii)     2,023       1,789  
Property and equipment     4       8  
Other     84       373  
Total deferred tax assets, gross     19,779       18,134  
                 
Deferred tax liabilities:                
Acquired in-process research and development     -       (13,875 )
                 
Total deferred taxes, net     19,779       4,259  
Valuation allowance     (19,779 )     (17,841 )
                 
Deferred tax liability, net   $ -     $ (13,582 )
Schedule of Reconciliation of Federal Statutory Income Tax Rate

A reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate for the years ended December 31, 2018 and 2017 is as follows:

 

    2018     2017  
             
Statutory federal income tax rate     21.0 %     34.0 %
Change in fair value of warrant liability     0.1 %     4.1 %
State income taxes, net of federal benefit     0.5 %     (7.5 )%
Tax credits     0.3 %     3.2 %
Change in valuation allowance     (3.1 )%     81.2 %
Permanent differences     0.1 %     1.2 %
State rate adjustment     2.9 %     -  
Tax Cuts and Jobs Act     -       (22.6 )%
Equity compensation adjustment     (0.1 )%     (1.8 )%
Effective income tax rate     21.7 %     91.8 %