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Income Taxes | 12 Months Ended
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Dec. 31, 2015
Income Taxes |
Income Taxes | 13. Income Taxes For the years ended December 31, 2015, 2014, and 2013, the Company did not record a provision for federal or state income taxes as it has incurred cumulative net operating losses since inception. A reconciliation of the U.S. statutory income tax rate to the Company's effective tax rate is as follows for the years ended December 31, 2015, 2014 and 2013:
|  | Year Ended December 31, |
|  | 2015 |  | 2014 |  | 2013 |
Federal income tax (benefit) at statutory rate |  |  | 34.00 | % |  | 34.00 | % |  | 34.00 | %
Permanent differences |  |  | (0.86 | ) |  | (1.29 | ) |  | (0.50 | )
Federal research and development credits and adjustments |  |  | 2.64 |  |  | 2.70 |  |  | 5.80 |
State income tax, net of federal benefit |  |  | 5.77 |  |  | 6.03 |  |  | 5.88 |
Other |  |  | 0.28 |  |  | (0.15 | ) |  | (0.01 | )
Change in valuation allowance |  |  | (41.82 | ) |  | (41.29 | ) |  | (45.17 | )
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Effective income tax rate |  |  | — | % |  | — | % |  | — | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
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The Company's deferred tax assets consisted of the following (in thousands):
|  | Year Ended December 31, |
|  | 2015 |  | 2014 |
Deferred tax assets |  |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 35,042 |  | $ | 22,577 |
Tax credit carryforwards |  |  | 3,762 |  |  | 2,748 |
Capitalized research and development |  |  | 4,087 |  |  | 4,780 |
Capitalized legal expenses |  |  | 1,464 |  |  | 1,223 |
Other differences |  |  | 815 |  |  | 195 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total deferred tax assets |  |  | 45,170 |  |  | 31,523 |
Valuation allowance |  |  | (45,170 | ) |  | (31,523 | )
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net deferred tax assets |  | $ | — |  | $ | — |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
The Company recorded increases to the valuation allowance of $13.6 million, $9.0 million, and $8.2 million during the years ended December 31, 2015, 2014 and 2013, respectively, due primarily to an increase in the net operating loss carryforwards and tax credits. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which the temporary differences representing net future deductible amounts become deductible. Due to the Company's history of losses, the deferred tax assets were fully offset by a valuation allowance at December 31, 2015 and 2014. As of December 31, 2015, the Company had approximately $89.8 million of federal and $88.4 million of state net operating loss carryforwards to offset future taxable income, if any. Such net operating loss carryforwards expire at varying times through the year 2035, if not utilized. Approximately $0.4 and $0.4 million of the federal and state net operating loss carryforward will result in an increase to additional paid-in capital if and when these carryforwards are used to reduce income taxes payable. Included in the federal and state net operating losses are deductions attributable to excess tax benefits from the exercise of non-qualified stock options of $0.4 million. The Company also had approximately $3.0 million of federal and $1.2 million of state tax credit carryforwards available to reduce future tax liabilities as of December 31, 2015, which will expire at varying times through the year 2035. The Internal Revenue Code of 1986, as amended (the "Code"), provides for a limitation of the annual use of net operating losses and other tax attributes (such as research and development tax credit carryforwards) following certain ownership changes (as defined by the Code) that could limit the Company's ability to utilize these carryforwards. At this time, the Company has not completed a study to assess whether an ownership change under Section 382 of the Code has occurred, or whether there have been multiple ownership changes since the Company's formation, due to the costs and complexities associated with such a study. The Company may have experienced various ownership changes, as defined by the Code, as a result of past financing transactions. Accordingly, the Company's ability to utilize the aforementioned carryforwards may be limited. Additionally, U.S. tax laws limit the time during which these carryforwards may be applied against future taxes. Therefore, the Company may not be able to take full advantage of these carryforwards for federal or state income tax purposes. As of December 31, 2015 and 2014, the Company did not have any significant unrecognized tax benefits. As of December 31, 2015, the Company had not accrued interest or penalties related to uncertain tax positions. The Company's tax returns for the years ended December 31, 2008 through December 31, 2015 are still subject to examination by major tax jurisdictions.

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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 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: 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 3: 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 4: 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 5: 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 + Details
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