XML 33 R21.htm IDEA: XBRL DOCUMENT v3.23.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 15 – INCOME TAXES

 

Income tax expense differs from the statutory amounts for each of the following years (in thousands):

 

   2022   2021 
   For the year ended December 31, 
   2022   2021 
         
Income taxes at U.S. statutory rate  $(8,336)  $(17,836)
Current year reserve   9,539    12,539 
Expenses not deductible   (1,203)   5,297 
Total tax expense  $—   $— 

 

Deferred taxes are provided for the temporary differences between the financial reporting bases and the tax bases of the Company’s assets and liabilities. The temporary differences that give rise to deferred tax assets and liabilities were as follows (in thousands):

 

   2022   2021 
   For the year ended December 31, 
   2022   2021 
         
Deferred tax assets (liabilities):          
Net operating loss carryforwards  $75,544   $71,001 
General business credit carryforwards   4,497    4,741 
State credits   2,780    2,780 
Property, equipment and goodwill   380    200 
Stock options   10,797    10,537 
Deferred revenue   —    62 
Intangible assets   612    367 
Accruals   211    16 
Accruals   5,480    — 
Gross deferred tax assets   100,301    89,704 
Valuation allowance   (100,301)   (89,704)
Net deferred taxes  $—   $— 

 

 

As of December 31, 2022, the Company had approximately $359.0 million of net operating loss carryforwards and approximately $4.5 million of general business credit carryforwards. These carryforwards expire as follows (in thousands):

 

  

Net operating

loss carryforwards

  

General business credit

carryforwards

 
         
2023  $5,434   $362 
2024   8,711    287 
2025   2,370    182 
2026   7,160    72 
2027   9,977    93 
Thereafter   80,439    3,501 
   $114,091   $4,497 

 

Losses incurred post 2017 do not expire and can only be used to offset 80% of taxable income in any tax year. As of December 31, 2022, the Company had approximately $245.0 million of net operating loss carryforwards that do not expire and can be carried forward indefinitely. Such net operating loss carryforwards can only be used to offset 80% of taxable income in any given tax year. In addition, the Company’s net operating loss carryforwards may be subject to limitation due to ownership changes.

 

The Company acquired MacroChem Corporation on March 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.