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INCOME TAXES
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 11 - INCOME TAXES

 

Income tax expense differs from the statutory amounts for each of the following years:

 

   2020   2019 
   For the years ended December 31, 
   2020   2019 
Income taxes at U.S. statutory rate  $(17,689,000)  $(16,020,000)
Current year reserve   12,020,000    15,976,000 
Expenses not deductible   5,669,000    44,000 
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, 2020   December 31, 2019 
Deferred tax assets (liabilities):          
Net operating loss carryforwards  $61,062,000   $50,802,000 
General business credit carryforwards   4,398,000    3,939,000 
State credits   2,857,000    2,934,000 
Property, equipment and goodwill   8,000    (28,000)
Stock options   9,551,000    7,960,000 
Deferred revenue   62,000    62,000 
Intangible assets   312,000    1,625,000 
Other   70,000    28,000 
Gross deferred tax assets   78,320,000    67,322,000 
Valuation allowance   (78,320,000)   (67,322,000)
Net deferred taxes  $-   $- 

 

 

As of December 31, 2020, we had approximately $290.8 million of net operating loss carryforwards and approximately $4.4 million of general business credit carryforwards. These carryforwards expire as follows:

 

   Net operating
loss carryforwards		   General business credit
carryforwards		 
2021  $5,378,000   $56,000 
2022   8,230,000    431,000 
2023   5,434,000    362,000 
2024   8,711,000    287,000 
2025   2,370,000    182,000 
Thereafter   97,576,000    3,080,000 
   $127,699,000   $4,398,000 

 

As of December 31, 2020, we had approximately $163.1 million of net operating loss carryforwards that do not expire and can be carried forward indefinitely.

 

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.