XML 42 R13.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2015
Income Taxes [Abstract] |
Income Taxes | 7. Income Taxes Significant components of our deferred tax assets and liabilities are as follows:
|  | December 31,
|  | 2015 |  | 2014
Deferred tax assets/(liabilities) |  |  |  |  |  |
Net operating loss carry-forwards |  | $ | 65,425,000 |  | $ | 61,332,000
Research and orphan drug credit carry-forwards |  |  | 5,181,000 |  |  | 3,855,000
Depreciation and amortization |  |  | (3,000) |  |  | (8,000)
Stock options and other |  |  | 479,000 |  |  | 1,381,000
Intangible assets |  |  | (3,079,000) |  |  | (3,155,000)
Net deferred tax assets/(liabilities) |  |  | 68,003,000 |  |  | 63,405,000
Valuation allowance for deferred tax assets |  |  | (71,008,000) |  |  | (66,483,000)
Net deferred tax assets/(liabilities) |  | $ | (3,005,000) |  | $ | (3,078,000)
At December 31, 2015, the Company had U.S. gross net operating loss carry-forwards, or “NOLs”, of approximately $182.3 million, foreign NOLs of $8.5 million, $3.0 million of which was generated in 2015 an d domestic research tax credit carry-forwards of approximately $5.2 million. The carry-forwards may be further subject to the application of Section 382 of the Internal Revenue Code of 1986 or the “Code”, as discussed further below. The NOL carry-forwards will begin to expire in 2019. The domestic research tax credit carry-forward will begin to expire in 2019. The Company has provided a valuation allowance to offset the deferred tax assets due to the uncertainty of realizing the benefits of the net deferred tax asset.
|  | December 31,
|  | 2015 |  | 2014
Percent of pre-tax income: |  |  |  |  |  |
U.S. federal statutory income tax rate |  | 34.0 | % |  | 34.0 | %
Warrant liability and preferred stock conversion liability |  | 573.8 | % |  | (54.9) | %
Difference in foreign vs U.S. statutory rates |  | (21.8) | % |  | - | %
Stock option forfeitures & expirations |  | (138.2) | % |  | - | %
State taxes, net of federal benefit |  | - | % |  | 3.7 | %
Non-deductible stock issuance costs |  | (17.9) | % |  | - | %
R&D expenses associated with Australian research grants |  | 27.8 | % |  | - | %
Effect of tax rate changes |  | 12.4 | % |  |  | %
All other |  | (2.9) | % |  | 1.0 | %
Subtotal |  | 467.2 | % |  | (16.2) | %
Change in valuation allowance |  | (454.8) | % |  | 16.2 | %
Effective income tax rate |  | 12.4 | % |  | 0.00 | %
The Company’s past sales and issuances of common and preferred stock have likely resulted in ownership changes as defined by Section 382 of the Code. The Company has not conducted a Section 382 study to date. It is possible that a future analysis may result in the conclusion that a substantial portion, or perhaps substantially all, of the NOLs and credits will expire due to the limitations of Sections 382 and 383 of the Code. As a result, the utilization of the NOLs and tax credits may be limited and a portion of the carry-forwards may expire unused. The Company does not have any material unrecognized tax benefits as of December 31, 2015. The Company is subject to U.S. federal tax examinations by tax authorities for the years 1998 to 2015 due to the fact that NOLs exist going back to 1998 that may be utilized on a current or future year tax return. The Company has a policy of recognizing tax related interest and penalties as additional tax expense when incurred. During the years ended December 31, 2015 and 2014, the Company did not recognize any interest and penalties.

X
- References No definition available. + 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 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 2: 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 Reference 3: 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 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 SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration