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INCOME TAXES | 12 Months Ended
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Dec. 31, 2015
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES The Company’s provision for income taxes from continuing operations for the years ended December 31, 2015 and 2014 relates to income taxes in states, foreign countries and other local jurisdictions and differs from the amounts determined by applying the statutory Federal income tax rate to loss before income taxes for the following reasons:
|  | Dollars in Thousands
|  | 2015 |  | 2014
Benefit at federal rate |  | $ | (3,449 | ) |  | $ | (3,665 | )
Increase (decrease) resulting from: |  |  |  |
State income taxes—net of federal benefit |  | (320 | ) |  | (401 | )
Miscellaneous permanent differences |  | 163 |  |  | 223 |
Liability warrants |  | 70 |  |  | (154 | )
State, net operating loss expiration/true-up |  | (187 | ) |  | (327 | )
Other—net |  | (119 | ) |  | 2 |
Valuation allowance |  | 3,842 |  |  | 4,322 |
Total income tax expense (benefit) |  | $ | — |  |  | $ | — |
|  | Dollars in Thousands
|  | 2015 |  | 2014
Federal: |  |  |  |
Current |  | $ | — |  |  | $ | — |
Deferred |  | — |  |  | — |
Total Federal |  | $ | — |  |  | $ | — |
State: |  |  |  |
Current |  | $ | — |  |  | $ | — |
Deferred |  | — |  |  | — |
Total State |  | $ | — |  |  | $ | — |
Foreign: |  |  |  |
Current |  | $ | — |  |  | $ | — |
Deferred |  | — |  |  | — |
Total Foreign |  | $ | — |  |  | $ | — |
Total Tax Provision |  | $ | — |  |  | $ | — |
The Company’s deferred income tax asset from continuing operations at December 31, 2015 and 2014 is comprised of the following temporary differences:
|  | Dollars in Thousands
|  | 2015 |  | 2014
Deferred Tax Asset: |  |  |  |
Net operating loss carryforward |  | $ | 51,449 |  |  | $ | 46,051 |
Research and development credit carryforwards |  | 918 |  |  | 918 |
Other |  | 585 |  |  | 539 |
|  | 52,952 |  |  | 47,508 |
Less valuation allowance |  | (52,902 | ) |  | (47,406 | )
Deferred Tax Asset |  | $ | 50 |  |  | $ | 102 |
Deferred Tax Liability: |  |  |  |
Property and equipment |  | 50 |  |  | 102 |
Deferred Tax Liability |  | $ | 50 |  |  | $ | 102 |
Net Deferred Asset (Liability) |  | $ | — |  |  | $ | — |
At December 31, 2015, we had total unused federal tax net operating loss carryforwards of $142.9 million. The expiration dates are as follows (amounts in thousands):
2018 | $ | 1,838 |
2019 | 8,181 |
2020 | 9,662 |
2021 | 8,228 |
2022 | 16,862 |
2023 | 16,173 |
2024 | 17,390 |
2025 | 8,153 |
2026 | 6,792 |
2027 | 3,238 |
2028 | 1,272 |
2029 | 591 |
2031 | 2,784 |
2032 | 8,358 |
2033 | 12,097 |
2034 | 7,591 |
2035 | 13,645 |
Total | $ | 142,855 |
Of these federal net operating loss carryforwards, $1.2 million were obtained in the acquisition of Annovis, Inc. and may be subject to certain restrictions. Remaining net operating loss carryforwards could be subject to limitations under section 382 of the Internal Revenue Code of 1986, as amended. At December 31, 2015, we had unused state tax net operating loss carryforwards of approximately $58.8 million that expire at various times beginning in 2016. At December 31, 2015, we had unused research and development credit carryforwards of $0.9 million that expire at various times between 2018 and 2028. At December 31, 2015, we had unused foreign net operating loss carryforwards relating to operations in the United Kingdom of approximately $0.9 million with an unlimited carryforward period. A valuation allowance has been provided for the net deferred tax assets, due to the cumulative losses in recent years and an inability to utilize any additional losses as carrybacks. We will continue to assess the recoverability of deferred tax assets and the related valuation allowance. To the extent we begin to generate income in future years and it is determined that such valuation allowance is no longer required, the tax benefit of the remaining deferred tax assets will be recognized at such time. Our liability for uncertain tax positions, which was included in other long term liabilities, was $0.1 million and $0.1 million as of December 31, 2015 and 2014, respectively. We recorded less than $0.1 million of additional uncertain tax positions during the years ended 2015 and 2014. We recorded a reduction of $0.2 million for uncertain tax positions during the year ended 2014. We recorded zero and $0.2 million for reductions in uncertain tax positions relating to statute of limitations lapse for the years ended 2015 and 2014, respectively. We had no material interest or penalties during fiscal 2015 or fiscal 2014, and we do not anticipate any such items during the next twelve months. Our policy is to record interest and penalties directly related to income taxes as income tax expense in the Consolidated Statements of Operations. We file income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions and various foreign jurisdictions. We have statutes of limitation open for Federal income tax returns related to tax years 2011 through 2015. We have state income tax returns subject to examination primarily for tax years 2011 through 2015. To the extent the Company has tax attribute carryforwards, the tax years in which the attribute was generated may still be adjusted upon examination by the Internal Revenue Service, state or foreign tax authorities to the extent utilized in a future period. Open tax years related to foreign jurisdictions remain subject to examination. Our primary foreign jurisdiction is the United Kingdom, which has open tax years for 2011 through 2015. During November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes”, which simplifies the presentation of deferred income taxes. This ASU requires that deferred tax assets and liabilities be classified as non-current in a statement of financial position. We early adopted ASU 2015-17 effective December 31, 2015 on a retrospective basis. Adoption of this ASU resulted in a reclassification of our net current deferred tax asset to the net non-current deferred tax asset in our Consolidated Balance Sheet as of December 31, 2014 and 2015

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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://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 + Details
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