Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income (loss) before income taxes consists of:

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


	Year Ended December 31,
(in thousands)	2018			2017
Income taxes using U.S federal statutory rate	$	(4,037	)	$	(15,340	)
Tax Cuts and Jobs Act		—			143
Nondeductible interest		2,273			6,912
Loss on extinguishment of debt		236			10,174
Loss of tax benefit of federal net operating loss carryforwards		(588	)		5,067
Loss of tax benefit of state net operating loss carryforwards		1,040			1,373
Loss of tax benefit of federal tax credit carryforwards		495			324
Amortization of gain on IP migration		—			767
State income taxes, net of federal benefit		(2,355	)		(1,339	)
Foreign rate differential		1,166			1,196
Valuation allowance		6,323			(1,423	)
Derivative charge		(4,138	)		(8,403	)
Stock option exercises and cancellations		215			841
Research and development costs		(636	)		(295	)
Other		6			3

	$	—		$	—

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


	Year Ended December 31,
(in thousands)	2018		2017
Deferred tax assets:
Employee compensation accruals	$	—	$	292
Accrued liabilities		519		353
Research tax credits		161		17
Other		60		34
Net operating losses		10,624		5,289

Total deferred tax assets		11,364		5,985

Deferred tax liabilities:
Beneficial conversion feature		—		—
Other		—		13

Total deferred tax liabilities				13

Valuation allowance		11,364		5,972

Net deferred tax assets	$	—	$	—

The change in valuation allowance is as follows:


(in thousands)	December 31, 2018			December 31, 2017
Beginning balance	$	5,972		$	7,094
Charged to costs and expenses		6,323			(1,423	)
Charged to additional paid-in capital		—			—
Charged to retained earnings		(834	)		—
Charged to other comprehensive income		(97	)		301

Ending balance	$	11,364		$	5,972