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Income Taxes | 9 Months Ended
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Dec. 31, 2011
Income Taxes |
3. | Income Taxes
For the nine-month fiscal year ended December 31, 2011, the tax provision of $16,000 is comprised of a $48,000 provision for a deferred tax liability related to goodwill amortization and a $32,000 benefit for a deferred tax asset related to a net operating loss for Repligen Sweden AB. For the fiscal year ended March 31, 2011, the Company had no current provisions for federal or state income taxes. For the fiscal year ended March 31, 2010, the tax benefit of ($834,766) is comprised of a current benefit for federal income taxes of ($834,766). The benefit for federal income taxes is due to the “Worker, Homeownership, and Business Assistance Act of 2009” (the “Act”) that was enacted in November 2009. Among other things, the Act suspended the limitation on the use of net operating losses to offset alternative minimum tax liabilities. The Company paid a total of approximately $835,000 of alternative minimum taxes in the fiscal years ended March 31, 2009 and 2008 combined. During the fiscal year ended March 31, 2011, the Company received a refund of approximately $835,000 upon filing its tax return for the fiscal year ended March 31, 2010 and related carry-back claim. At December 31, 2011, the Company had net operating loss carryforwards of approximately $58,243,000 and business tax credits carryforwards of approximately $2,196,000 available to reduce future federal income taxes, if any. Additionally, at December 31, 2011, the Company had net operating loss carryforwards of approximately $4,816,000 and business tax credits carryforwards of approximately $2,986,000 available to reduce future state income taxes, if any. The net operating loss and business tax credits carryforwards will continue to expire at various dates through December 2031. The net operating loss and business tax credit carryforwards are subject to review and possible adjustment by the Internal Revenue Service and may be limited in the event of certain changes in the ownership interest of significant stockholders. Our consolidated deferred tax assets (liabilities) consist of the following:
|  | December 31, 2011 |  |  | March 31, 2011 |
Deferred tax assets: |  |  |  |  |  |  |  |
Temporary timing differences |  | $ | 4,277,000 |  |  | $ | 4,520,000 |
Net operating loss carryforwards |  |  | 20,065,000 |  |  |  | 19,587,000 |
Tax business credits carryforwards |  |  | 4,166,000 |  |  |  | 4,442,000 |
Total deferred tax assets |  |  | 28,508,000 |  |  |  | 28,549,000 |
Valuation allowance |  |  | (28,476,000 | ) |  |  | (28,549,000 | )
Net deferred tax assets |  | $ | 32,000 |  |  | $ | — |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Goodwill |  | $ | (48,000 | ) |  | $ | — |
Acquired intangibles |  |  | (89,000 | ) |  |  | — |
Net deferred tax assets (liabilities) |  | $ | (105,000 | ) |  | $ | — |
At December 31, 2011 and March 31, 2011, a full valuation allowance has been provided against the U.S. deferred tax assets, as it is uncertain if the Company will realize the benefits of such U.S. deferred tax assets. The valuation allowance increased $73,000 for the nine months ended December 31, 2011. The reconciliation of the federal statutory rate to the effective income tax rate for the nine-month fiscal year ended December 31, 2011 and the fiscal years ended March 31, 2011 and 2010 is as follows:
|  | Period Ended, |
|  | December 31, 2011 |  |  | March 31, 2011 |  |  | March 31, 2010 |
Loss before income taxes |  | $ | (1,596,881 | ) |  |  | % |  |  | $ | (43,509 | ) |  |  | % |  |  | $ | (4,898,610 | ) |  |  | % |
Expected tax (recovery) at statutory rate |  |  | (542,939 | ) |  |  | (34.0 | )% |  |  | (14,793 | ) |  |  | (34.0 | )% |  |  | (1,665,527 | ) |  |  | (34.0 | )%
Adjustments due to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Difference between U.S. and foreign tax |  |  | (19,287 | ) |  |  | (1.2 | )% |  |  | — |  |  |  | (0.0 | )% |  |  | — |  |  |  | (0.0 | )%
State income and franchise taxes |  |  | 52,905 |  |  |  | 3.3 | % |  |  | 96,141 |  |  |  | 221.0 | % |  |  | (80,151 | ) |  |  | (1.6 | )%
Utilization of loss carryforwards and business tax credits |  |  | (68,926 | ) |  |  | (4.3 | )% |  |  | (66,126 | ) |  |  | (152.0 | )% |  |  | (934,659 | ) |  |  | (19.1 | )%
Transaction costs |  |  | 240,842 |  |  |  | 15.1 | % |  |  | — |  |  |  | 0.0 | % |  |  | — |  |  |  | 0.0 | %
Gain on bargain purchase |  |  | (112,427 | ) |  |  | (7.0 | )% |  |  | — |  |  |  | (0.0 | )% |  |  | — |  |  |  | (0.0 | )%
Permanent differences |  |  | 218,989 |  |  |  | 13.7 | % |  |  | 250,483 |  |  |  | 575.7 | % |  |  | 255,766 |  |  |  | 5.2 | %
Change in valuation allowance |  |  | 246,587 |  |  |  | 15.4 | % |  |  | (265,706 | ) |  |  | (610.7 | )% |  |  | 1,589,805 |  |  |  | 32.5 | %
Provision (benefit) for income taxes |  | $ | 15,744 |  |  |  | 1.0 | % |  | $ | — |  |  |  | (0.0 | )% |  | $ | (834,766 | ) |  |  | (17.0 | )%
At December 31, 2011 as well as March 31, 2011 and 2010, the Company had no material unrecognized tax benefits. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. No interest and penalties have been recognized by the Company to date. The fiscal years ended March 31, 2007 through March 31, 2011 as well as the nine-month fiscal year ended December 31, 2011 are subject to examination by the federal and state taxing authorities. Currently, a corporate excise tax audit is underway in the Commonwealth of Massachusetts for the fiscal years ended March 31, 2007 and 2008. To date, there are no proposed adjustments and the Company continues to believe no reserve is required under ASC 740 Income Taxes.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 + Details
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