XML 59 R19.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The provision for income taxes is based on loss from operations before provision for income taxes and noncontrolling interests as follows ($ in thousands):
| Years Ended December 31,
Pre-tax book income | 2019 |  | 2018
United States | $ | (19,352 | ) |  | $ | (16,168 | )
| $ | (19,352 | ) |  | $ | (16,168 | )
The provision for income taxes is determined by applying the U.S. Federal statutory rate of 21% to income before income taxes as a result of the following ($ in thousands):
|  | Years Ended December 31,
|  | 2019 |  | 2018
U.S. Federal benefit at statutory rate |  | $ | (4,064 | ) |  | $ | (3,395 | )
State and local (benefit) / expense net of U.S. federal tax |  | — |  |  | — |
Permanent non deductible expenses for U.S. taxes |  | 14 |  |  | 11 |
AMT credit benefit |  | — |  |  | — |
Change in state deferred |  | (4,720 | ) |  | 2,799 |
Return to actual |  | (17 | ) |  | (177 | )
Other true ups |  | 1,941 |  |  | (1,949 | )
Effect of change in deferred tax rate |  | — |  |  | — |
Valuation allowance for deferred tax assets |  | 6,846 |  |  | 2,711 |
Tax provision |  | $ | — |  |  | $ | — |
Deferred income taxes at December 31, 2019 and 2018 consist of the following ($ in thousands):
|  | December 31,
|  | 2019 |  | 2018
Deferred Tax Assets: |  |  |  |
Accumulated net operating losses (tax effected) |  | $ | 70,747 |  |  | $ | 60,544 |
CIRM funding |  | 336 |  |  | 1,033 |
Right of use liability |  | 205 |  |  | 5 |
Share-based compensation |  | 3,584 |  |  | 6,390 |
Intangibles |  | 141 |  |  | 199 |
Charitable contributions |  | — |  |  | 9 |
Accumulated depreciation |  | 9 |  |  | 9 |
Accrued payroll |  | 121 |  |  | 117 |
Other |  | 737 |  |  | 525 |
Deferred tax assets |  | 75,880 |  |  | 68,831 |
Deferred Tax Liabilities: |  |  |  |
Right of use asset |  | $ | (190 | ) |  | $ | — |
Deferred tax liabilities |  | (190 | ) |  | — |
|  | 75,690 |  |  | 68,831 |
Valuation allowance |  | (75,690 | ) |  | (68,831 | )
Net deferred tax asset |  | $ | — |  |  | $ | — |
In assessing the realizability of deferred tax assets, including the net operating loss carryforwards (NOLs), the Company assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize its existing deferred tax assets. Based on its assessment, the Company has provided a full valuation allowance against its net deferred tax assets as their future utilization remains uncertain at this time. As of December 31, 2019 and 2018, the Company had approximately $246 million and $225 million, respectively of Federal NOLs available to offset future taxable income expiring from 2030 through 2036. In accordance with Section 382 of the Internal Revenue code, the usage of the Company’s NOLs could be limited in the event of a change in ownership. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period when those temporary differences become deductible. The Company performed an analysis and determined that they have had ownership change of greater than 50% over a 3-year testing period. The last ownership change was determined to be on June 3, 2015. Based on a market capitalization of $125 million and using an applicable federal rate of 2.5% the annual limitation would be approximately $3.0 million. Post change losses from June 3, 2015 would not be subject to 382 limitations. The Company applies the FASB’s provisions for uncertain tax positions. The Company utilizes the two-step process to determine the amount of recognized tax benefit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company recognizes interest and penalties associated with certain tax positions as a component of income tax expense. As of December 31, 2019, management does not believe the Company has any material uncertain tax positions that would require it to measure and reflect the potential lack of sustainability of a position on audit in its financial statements. The Company will continue to evaluate its uncertain tax positions in future periods to determine if measurement and recognition in its financial statements is necessary. The Company does not believe there will be any material changes in its unrecognized tax positions over the next year. For years prior to 2016 the federal statute of limitations is closed for assessing tax. The Company’s state tax returns remain open to examination for a period of three to four years from date of filing.

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://fasb.org/us-gaap/role/ref/legacyRef -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