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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Schedule of Income Before Income Taxes

Income before income taxes consists of:

 

 

 

Year Ended December 31,

 

(in thousands)

 

2016

 

 

2015

 

Domestic

 

$

(13,930

)

 

$

(11,276

)

Foreign

 

 

(4,040

)

 

 

(3,428

)

Income before taxes

 

$

(17,970

)

 

$

(14,704

)

 

Income tax reconciliation

The provision for income taxes differs from the amount computed by applying the statutory rate as follows:

 

 

 

Year Ended December 31,

 

(in thousands)

 

2016

 

 

2015

 

Income taxes using U.S federal statutory rate

 

$

(6,110

)

 

$

(4,999

)

Loss of tax benefit of net operating loss carryforwards

 

 

68,795

 

 

 

 

Loss of tax benefit of state net operating loss carryforwards

 

 

13,891

 

 

 

 

Loss of tax benefit of tax credit carryforwards

 

 

4,023

 

 

 

 

Amortization of gain on IP migration

 

 

767

 

 

 

767

 

State income taxes, net of federal benefit

 

 

(2,576

)

 

 

380

 

Foreign rate differential

 

 

1,141

 

 

 

920

 

Valuation allowance

 

 

(75,407

)

 

 

2,649

 

Derivative charge

 

 

(4,345

)

 

 

(192

)

Stock option exercises and cancellations

 

 

53

 

 

 

674

 

Research and development costs

 

 

(250

)

 

 

(199

)

Other

 

 

18

 

 

 

 

 

 

$

 

 

$

 

 

Significant components of deferred tax assets

Significant components of the Company’s deferred tax assets are as follows:  

 

(in thousands)

 

December 31, 2016

 

 

December 31, 2015

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Employee compensation accruals

 

$

1,386

 

 

$

1,279

 

Accrued liabilities

 

 

343

 

 

 

633

 

Research  tax credits

 

 

22

 

 

 

3,796

 

Other

 

 

55

 

 

 

66

 

Net operating losses

 

 

6,194

 

 

 

77,906

 

Total deferred tax assets

 

$

8,000

 

 

$

83,680

 

 

 

 

 

 

 

 

 

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Beneficial conversion feature

 

 

906

 

 

 

 

Total deferred tax liabilities

 

$

906

 

 

$

 

 

 

 

 

 

 

 

 

 

Valuation allowance

 

 

7,094

 

 

 

83,680

 

Net deferred tax assets

 

$

 

 

$

 

 

Summary of Change in Valuation Allowance

The change in valuation allowance is as follows:

 

(in thousands)

 

December 31, 2016

 

 

December 31, 2015

 

Beginning balance

 

$

83,680

 

 

$

81,223

 

Charged to costs and expenses

 

 

(75,407

)

 

 

2,649

 

Charged to additional paid-in capital

 

 

(1,854

)

 

 

-

 

Charged to retained earnings

 

 

1,010

 

 

 

-

 

Charged to other comprehensive income

 

 

(335

)

 

 

(192

)

Ending balance

 

$

7,094

 

 

$

83,680