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Note 12 - Income Taxes | 12 Months Ended
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Dec. 31, 2018
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | 12. Income Taxes Deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amounts and tax bases of assets and liabilities using enacted tax rates in effect for years in which differences are expected to reverse. Significant components of the Company's deferred tax assets for federal income taxes consisted of the following:
Deferred tax assets |  | December 31, 2018 |  |  | December 31, 2017 |
Net operating loss carryforwards |  | $ | 5,875,074 |  |  | $ | 5,310,628 |
Stock option compensation |  |  | 2,456,410 |  |  |  | 2,141,973 |
Orphan Drug credits |  |  | 2,847,803 |  |  |  | 2,537,039 |
Capitalized start-up costs and other |  |  | 7,349,092 |  |  |  | 5,247,468 |
Valuation allowance |  |  | (18,091,090 | ) |  |  | (15,237,108 | )
Net deferred tax asset |  | $ | 437,289 |  |  |  |  |
Deferred tax liabilities |  |  |  |  |  |  |  |
Intangible assets |  |  | (2,223,678 | ) |  |  | (2,223,678 | )
Net deferred tax liability |  | $ | (1,786,389 | ) |  | $ | (2,223,678 | )
The Company does not have unrecognized tax benefits as of December 31, 2018 or December 31, 2017. The Company recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. The Company had net operating loss carryforwards (“NOL”) for federal and state income tax purposes at December 31, 2018 of approximately:
Combined NOL Carryforwards: |  | December 31, 2018 |
Federal |  | $ | 22,819,972 |
State |  |  | 22,845,568 |
The net operating loss carryforwards generated prior to 2017 begin expiring in 2034 for both federal and state income tax purposes. Those generated in 2018 and into the future now have an indefinite life. In January 2016, the Company increased the number of shares outstanding resulting in a change of ownership, under the provisions of Internal Revenue Code section 382 and similar state provisions. Stock issuances in 2018 and 2017 might have also resulted in changes of ownership. These provisions limit the Company's ability to utilize these net operating loss carryforwards to offset future income. The amounts above reflect the amount of NOLs that the Company expects to be able to utilize as a result of the limitation. Excluding the deferred tax asset associated with the net operating loss with unlimited carryforward, the Company recorded a valuation allowance for the remaining deferred tax assets as of December 31, 2018, because of the uncertainty of their realization. A reconciliation of income tax benefit at the statutory federal income tax rate and income taxes as reflected in the financial statements is as follows:
Rate reconciliation: |  | December 31, 2018 |  |  | December 31, 2017 |
Federal tax benefit at statutory rate |  |  | (21.0 | )% |  |  | (34.0 | )%
State tax, net of Federal benefit |  |  | (2.9 | )% |  |  | (16.3 | )%
Change in fair value of warrant |  |  | — | % |  |  | (126.1 | )%
Change in tax rate |  |  | — | % |  |  | 205.5 | %
Goodwill impairment |  |  | 7.7 | % |  |  | — | %
Orphan drug credit |  |  | (1.3 | )% |  |  | (36.0 | )%
Change in valuation allowance |  |  | 15.2 | % |  |  | (38.8 | )%
Stock compensation |  |  | — | % |  |  | 1.2 | %
Other |  |  | — | % |  |  | 1.0 | %
Total provision |  |  | (2.3 | )% |  |  | (43.5 | )%
The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The Company’s 2015 to 2017 tax years remain open and subject to examination; carryforward amounts from the 2014 year remain subject to adjustment. On December 22, 2017 the President of the United States signed into law the Tax Cuts and Jobs Act (“The 2017 Tax Act”), which resulted in significant changes from previous tax law. The 2017 Tax Act required the Company to revalue its deferred tax assets and liabilities to the new rate of 21%. As a result of the change, the Company recorded a tax benefit of $1.1 million for the year ended December 31, 2017. The 2017 Tax Act also changed the net operating loss carryforwards’ period such that all net operating losses generated in 2018 and into the future now have an indefinite life. As a result of the change in net operating loss carryforward period, during the year ended December 31, 2018, the Company recognized an income tax benefit of $0.4 million to reflect the adjustment allowed by the 2017 Tax Act to utilize indefinite deferred tax liabilities as a source of income against indefinite lived portions of the Company’s deferred tax assets.

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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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