XML 28 R16.htm IDEA: XBRL DOCUMENT
v3.10.0.1

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | 10. INCOME TAXES
|  | 2018 |  |  | 2017 |
Tax provision (benefit) |  |  |  |  |  |  |  |
Current |  |  |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |
State |  |  | — |  |  |  | — |
Total current |  |  | — |  |  |  | — |
Deferred |  |  |  |  |  |  |  |
Federal |  |  | (2,688,003 | ) |  |  | 13,626,404 |
State |  |  | (45,138 | ) |  |  | 1,969,262 |
Total deferred |  |  | (2,733,141 | ) |  |  | 15,595,666 |
Change in valuation allowance |  |  | 2,733,141 |  |  |  | (15,595,666 | )
Total |  | $ | — |  |  | $ | — |
Deferred tax assets consisted of the following at December 31:
|  | 2018 |  |  | 2017 |
Deferred tax assets |  |  |  |  |  |  |  |
Federal net operating loss |  | $ | 26,562,715 |  |  | $ | 24,353,504 |
Federal research and development tax credit carryforwards |  |  | 5,439,062 |  |  |  | 4,947,879 |
State net operating losses and tax credit carryforwards |  |  | 1,589,926 |  |  |  | 1,589,927 |
Capitalized research and development expenses |  |  | 5,959,275 |  |  |  | 5,772,165 |
Stock-based compensation expense |  |  | 1,565,130 |  |  |  | 1,445,078 |
Depreciable assets |  |  | — |  |  |  | 166,793 |
Other |  |  | 103,189 |  |  |  | 121,680 |
Total deferred tax assets |  |  | 41,219,297 |  |  |  | 38,397,026 |
Deferred tax liabilities |  |  |  |  |  |  |  |
Depreciable assets |  |  | (89,129 | ) |  |  | — |
Total deferred tax liabilities |  |  | (89,129 | ) |  |  | — |
Net deferred tax assets |  |  | 41,130,168 |  |  |  | 38,397,026 |
Less– valuation allowance |  |  | (41,130,168 | ) |  |  | (38,397,026 | )
Total deferred tax assets |  | $ | — |  |  | $ | — |
A reconciliation of income taxes computed using the U.S. federal statutory rate to that reflected in operations is as follows:
|  | Year ended December 31, |
|  | 2018 |  |  | 2017 |
Income tax benefit using U.S. federal statutory rate |  |  | (21.00 | )% |  |  | 34.00 | %
State income taxes |  |  | (0.27 | )% |  |  | (9.58 | )%
Permanent items |  |  | 2.56 | % |  |  | (2.55 | )%
Federal tax credits |  |  | (3.44 | )% |  |  | 8.43 | %
Change in valuation allowance |  |  | 20.65 | % |  |  | 115 | %
Federal rate change |  |  | — | % |  |  | (143.50 | )%
Other |  |  | 1.50 | % |  |  | (1.80 | )%
Total |  |  | 0.00 | % |  |  | 0.00 | %
As of December 31, 2018, the Company had federal and state net operating loss carryforwards (“NOLs”) of approximately $126,489,000 and $15,862,000 respectively. Federal net operating loss generated as of December 31, 2017 will expire in 2019 through 2037, net operating loss generated during 2018 and later will be carried forward indefinitely until utilized. State net operating loss will expire in 2028 through 2031. In addition, the Company has federal and state research and development and orphan drug credits of approximately $5,403,000 and $805,000, respectively, which expire in 2019 through 2038 and in 2024 through 2033, respectively. The amount of NOLs and tax credit carryforwards which may be utilized annually in future periods will be limited pursuant to Section 382 of the Internal Revenue Code as a result of substantial changes in the Company’s ownership that have occurred or that may occur in the future. The Company has not quantified the amount of such limitations. Because of the Company’s continuing losses and uncertainty associated with the utilization of the deferred tax assets in the future, management has provided a full allowance against the net deferred tax asset. The Company did not have unrecognized tax benefits or accrued interest and penalties at any time during the years ended December 31, 2018 or 2017 and does not anticipate having unrecognized tax benefits over the next twelve months. The Company is subject to audit by the IRS and state taxing authorities for tax periods commencing January 1, 2015. Additionally, the Company may be subject to examination by the IRS for years beginning prior to January 1, 2015 as a result of its NOLs. However, any adjustment related to these periods would be limited to the amount of the NOL generated in the year(s) under examination. On December 22, 2017 The Tax Cuts and Jobs Act (the “Act”) was enacted. The Act significantly revised the U.S. corporate income tax law by lowering the corporate Federal income tax rate from 35% to 21%. As of December 31, 2017, the Company has assessed the effects of the corporate rate reduction on its existing deferred tax balances which resulted in the valuation allowance equal to the effect of the rate reduction on the ending deferred tax asset. In addition to the rate reduction, the Act requires companies with foreign subsidiaries to pay a one-time transition tax on earnings that were previously tax deferred, and also imposes a current taxation on income earned during the year. As of December 31, 2018, the Company does not maintain any foreign subsidiaries and does not have previously deferred foreign earnings subject to the transition 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://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