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INCOME TAXES | 12 Months Ended
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Dec. 31, 2018
Income Tax Disclosure [Abstract] |
INCOME TAXES | NOTE 12 — INCOME TAXES Income tax expense differs from the statutory amounts for each of the following years:
|  | 2018 |  |  | 2017 |  |  | 2016 |
Income taxes at U.S. statutory rate |  | $ | (11,901,000 | ) |  | $ | (9,289,000 | ) |  | $ | (7,437,000 | )
Current year reserve |  |  | 11,877,000 |  |  |  | (25,175,000 | ) |  |  | 7,423,000 |
Expenses not deductible |  |  | 24,000 |  |  |  | 46,000 |  |  |  | 14,000 |
Rate change |  |  | — |  |  |  | 34,418,000 |  |  |  | — |
Total tax expense |  | $ | — |  |  | $ | — |  |  | $ | — |
Deferred taxes are provided for the temporary differences between the financial reporting bases and the tax bases of our assets and liabilities. The temporary differences that give rise to deferred tax assets and liabilities were as follows:
|  | December 31, 2018 |  |  | December 31, 2017 |
Deferred tax assets (liabilities): |  |  |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 38,761,000 |  |  | $ | 50,029,000 |
General business credit carryforwards |  |  | 3,214,000 |  |  |  | 3,227,000 |
State credits |  |  | 3,012,000 |  |  |  | 3,089,000 |
Property, equipment and goodwill |  |  | (72,000 | ) |  |  | (28,000 | )
Stock options |  |  | 6,316,000 |  |  |  | 5,122,000 |
Derivatives |  |  | (57,000 | ) |  |  | (57,000 | )
Deferred revenue |  |  | 62,000 |  |  |  | 778,000 |
Intangible assets |  |  | 399,000 |  |  |  | 379,000 |
Accrued interest |  |  | 0 |  |  |  | 156,000 |
Other |  |  | 80,000 |  |  |  | 143,000 |
Gross deferred tax assets |  |  | 51,715,000 |  |  |  | 62,838,000 |
Valuation allowance |  |  | (51,715,000 | ) |  |  | (62,838,000 | )
Net deferred taxes |  | $ | — |  |  | $ | — |
At December 31, 2018, we had approximately $184.6 million of net operating loss carryforwards and approximately $3.2 million of general business credit carryforwards. These carryforwards expire as follows:
|  | Net operating loss carryforwards |  |  | General business credit carryforwards |
2019 |  | $ | 3,306,000 |  |  | $ | 95,000 |
2020 |  |  | 5,125,000 |  |  |  | 226,000 |
2021 |  |  | 5,378,000 |  |  |  | 56,000 |
2022 |  |  | 8,230,000 |  |  |  | 431,000 |
Thereafter |  |  | 162,537,000 |  |  |  | 2,406,000 |
|  | $ | 184,576,000 |  |  | $ | 3,214,000 |
We acquired MacroChem Corporation on February 25, 2009 and Somanta Pharmaceuticals, Inc. on January 4, 2008. Both of these corporations were loss-making entities at the time of acquisition. As a result, the net operating losses related to those acquisitions may be subject to annual limitations as well. On December 22, 2017, President Donald Trump signed the Tax Cuts and Jobs Act (the “Act”). The Act reduces the U.S. federal corporate tax rate from 34% to 21%. At December 31, 2017, we recalculated our deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%, and recorded a provisional adjustment of $34,418,000. In 2018, the accounting for the income tax enactment-date effects of the Act were completed and there was no adjustment to the provisional amount recorded in 2017.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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