XML 59 R18.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Note 12 - Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2013
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | NOTE 12 INCOME TAXES There is no provision recorded for the fiscal years ended 2013, 2012 and 2011 because we have incurred operating losses. Deferred income taxes reflect the net tax effects of net operating loss and tax credit carryovers and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets are as follows (in thousands):
December 31, |  | 2013 |  |  | 2012 |  |  | 2011 |
Deferred Tax Assets: |  |  |  |  |  |  |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 31,834 |  |  | $ | 13,900 |  |  | $ | 6,700 |
Research credits |  |  | 4,792 |  |  |  | 2,300 |  |  |  | 2,100 |
Stock compensation expense |  |  | 4,124 |  |  |  | 2,600 |  |  |  | 600 |
Other |  |  | 487 |  |  |  | 400 |  |  |  | 900 |
Total deferred tax assets |  |  | 41,237 |  |  |  | 19,200 |  |  |  | 10,300 |
Valuation allowance |  |  | (41,237 | ) |  |  | (19,200 | ) |  |  | (10,300 | )
Net deferred tax assets |  | $ | - |  |  | $ | - |  |  | $ | - |
Realization of our deferred tax assets is dependent upon our future taxable income, if any, the timing and amount of which are uncertain. Accordingly, our deferred tax assets have been fully offset by a valuation allowance. The valuation allowance increased by $22.0 million and $8.9 million during 2013 and 2012, respectively. As of December 31, 2013, we had federal and California net operating loss carryforwards of $80.1 million and $79.1 million, respectively, and federal and California research and development tax credit carryforwards of $2.2 million and $3.9 million, respectively. Of the carryforwards, federal and California net operating loss carryforwards of $75.0 million and $74.0 million, respectively, are subject to annual limitations and will be available from 2014 through 2031, as a result of federal ownership change limitations. The remaining federal and state net operating losses carryforwards expire beginning in 2018 for federal and 2014 for state, through 2033, if not utilized. The federal research credits expire beginning in 2022 and the state research credits have no expiration date. Federal and state laws limit the use of net operating loss and tax credit carryforwards in certain situations where changes occur in the stock ownership of a company. We conducted an analysis of our stock ownership under Internal Revenue Code Section 382 and have reported our deferred tax assets related to net operating loss and research credit carryforwards after recognizing change of control limitations in 2007, 2011 and 2013. The limitation of our federal and state carryforwards associated with previous net operating loss and research credit carryforwards, and the associated reduction in our deferred tax assets, was offset by a reduction in our valuation allowance. Utilization of our remaining net operating loss and research and development credit carryforwards may still be subject to substantial annual limitations due to ownership change limitations after December 31, 2013. Such an annual limitation could result in the expiration of the net operating loss and research and development credit carryforwards available as of December 31, 2013 before utilization. The provision for income taxes differs from the amount computed by applying the U.S. federal statutory tax rate (34% in 2013, 2012 and 2011) to income taxes as follows (in thousands):
December 31, |  | 2013 |  |  | 2012 |  |  | 2011 |
Tax benefit computed at 34% |  | $ | (18,796 | ) |  | $ | (7,937 | ) |  | $ | (4,017 | )
Stock compensation expense |  |  | 513 |  |  |  | 176 |  |  |  | 148 |
Other |  |  | 300 |  |  |  | 210 |  |  |  | 70 |
NOL not benefitted |  |  | 17,983 |  |  |  | 7,551 |  |  |  | 3,799 |
Tax Provision (Benefit) |  | $ | - |  |  | $ | - |  |  | $ | - |
We follow the provisions of ASC 740-10-50, Accounting for Uncertainty in Income Tax Provisions. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands):
December 31, |  | 2013 |  |  | 2012 |  |  | 2011 |
Unrecognized tax benefit: |  |  |  |  |  |  |  |  |  |  |  |
At the beginning of the period |  | $ | 120 |  |  | $ | 120 |  |  | $ | 120 |
Gross increases – tax positions in the current period |  |  | - |  |  |  | - |  |  |  | - |
Gross decreases – tax positions in the current period |  |  | - |  |  |  | - |  |  |  | - |
At the end of the period |  | $ | 120 |  |  | $ | 120 |  |  | $ | 120 |
The unrecognized tax benefit, if recognized in full, would result in adjustments to deferred taxes and the related valuation allowance. We do not currently anticipate any significant changes to the unrecognized tax benefits in 2014. Our policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of tax expense. To date, we have not used the unrecognized tax benefits to reduce any of our past tax obligations. As a result, we had no accrual for the payment of interest and penalties related to the unrecognized tax benefits. As of December 31, 2013, our tax returns were subject to future examination in the U.S. federal and state tax jurisdictions for the tax years 1997 through 2013, due to net operating losses and research credits that are being carried forward.

X
- Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration