XML 33 R14.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Income Taxes | Note 8 – Income Taxes Deferred income taxes reflect the net tax effects of 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 the Company’s deferred tax assets and liabilities at December 31, 2017 and 2016 are as follows:
|  | 2017 |  |  | 2016 |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating losses carry forward |  | $ | 30,826,534 |  |  | $ | 38,874,255 |
Share-based compensation |  |  | 3,731,413 |  |  |  | 8,081,711 |
Research & Development/Orphan Drug Credits |  |  | 6,324,998 |  |  |  | 830,085 |
Others |  |  | 11,369 |  |  |  | 16,329 |
Less: valuation allowance |  |  | (40,894,314 | ) |  |  | (47,802,380 | )
Deferred tax assets, net |  | $ | - |  |  | $ | - |
The Company has recorded a valuation allowance of $40.9 million and $47.8 million against its deferred tax assets at December 31, 2017 and 2016, respectively, because management determined that it is not more-likely-than not that those assets will be realized. For federal income tax purposes, the Company has approximately $123.3 million of unused net operating losses (“NOLs”) at December 31, 2017 available for carry forward to future years. These NOLs will begin to expire if unused in 2018. For state income tax purposes, the Company has approximately $77.5 million of unused NOLs at December 31, 2017 available for carry forward to future years. These NOLs will begin to expire if unused in 2035. The Company has Federal Research and Development tax credits of approximately $1.3 million at December 31, 2017 which will begin to expire if unused in 2033 and Orphan Drug Credits of $5.0 million which will begin to expire if unused in 2027. Federal and state tax laws impose limitations on the utilization of net operating losses and credit carryforwards in the event of an ownership change for tax purposes, as defined in Section 382 of the Internal Revenue Code. Accordingly, the Company’s ability to utilize these carryforwards may be limited as a result of an ownership change which may have already happened or may happen in the future. Such an ownership change could result in a limitation in the use of the net operating losses in future years and possibly a reduction of the net operating losses available. On December 22, 2017, the Tax Cuts and Jobs Act was signed into legislation and reduces the corporate tax rate to 21%, effective January 1, 2018. Consequently, the Company has recorded a decrease related to its deferred tax assets of $17.9 million with a corresponding adjustment to the valuation allowance of $17.9 million for the year ended December 31, 2017. The difference between the income tax provision and the amount that would result if the U.S. Federal statutory rate of 34% were applied to pre-tax loss for the years ended December 31, 2017, 2016 and 2015 are as follows:
|  | For the year ended |
|  | December 31, 2017 |  |  | December 31, 2016 |  |  | December 31, 2015 |
Federal income taxes at 34% |  | $ | (9,044,420 | ) |  |  | (34.0 | )% |  | $ | (8,269,386 | ) |  |  | (34.0 | )% |  | $ | (7,148,607 | ) |  |  | (34.0 | )%
State income taxes |  |  | (1,940,945 | ) |  |  | (7.3 | )% |  |  | 973,547 |  |  |  | 4.0 | % |  |  |  |  |  |  |  |
Change in Federal statutory rate |  |  | 17,939,714 |  |  |  | 67.4 | % |  |  | - |  |  |  | - | % |  |  | - |  |  |  | - | %
Deferred true-up |  |  | 3,090,815 |  |  |  | 11.8 | % |  |  | (10,511,380 | ) |  |  | (43.3 | )% |  |  | 1,104,763 |  |  |  | 5.2 | %
Research and Development/Orphan Drug Tax Credit |  |  | (3,029,074 | ) |  |  | (11.4 | )% |  |  | (141,769 | ) |  |  | (0.6 | )% |  |  | - |  |  |  | - | %
Unrealized derivative gain/loss |  |  | (120,870 | ) |  |  | (0.5 | )% |  |  | (956,840 | ) |  |  | (3.9 | )% |  |  |  |  |  |  |  |
Other |  |  | 12,845 |  |  |  | 0.0 | % |  |  | 13,632 |  |  |  | 0.1 | % |  |  | - |  |  |  | - | %
Change in valuation allowance |  |  | (6,908,065 | ) |  |  | (26.0 | )% |  |  | 18,892,196 |  |  |  | 77.7 | % |  |  | 6,043,844 |  |  |  | 28.8 | %
Provision for income tax |  | $ | - |  |  |  | - |  |  | $ | - |  |  |  | - |  |  | $ | - |  |  |  | - |

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 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration