Annual report pursuant to Section 13 and 15(d) 12-31-2014

Income Taxes

v2.4.1.9
Income Taxes
12 Months Ended
Dec. 31, 2014
Income Tax Disclosure [Abstract]  
Income Taxes

10. Income Taxes

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

The following is a reconciliation of the expected statutory federal income tax provision to the actual income tax benefit (in thousands):

 

 

 

Years Ended December 31,

 

 

 

2014

 

 

2013

 

Federal statutory rate

 

 

(34.0

)%

 

 

(34.0

)%

State taxes, net of federal benefit

 

 

(4.3

)%

 

 

(4.3

)%

Research and development credits

 

 

(0.7

)%

 

 

(3.0

)%

Equity related expenses

 

 

2.9

%

 

 

(5.0

)%

Change in valuation allowance

 

 

36.1

%

 

 

46.3

%

Total income tax expense

 

 

0.0

%

 

 

0.0

%

Significant components of the Company’s deferred tax assets and liabilities were as follows (in thousands):

 

 

 

December 31,

 

 

 

2014

 

 

2013

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Net operating loss carryforwards

 

$

50,673

 

 

$

42,661

 

Depreciation

 

 

60

 

 

 

17

 

Research credits

 

 

2,587

 

 

 

2,350

 

Other

 

 

6,057

 

 

 

2,823

 

Total deferred tax assets

 

 

59,377

 

 

 

47,851

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

(918

)

 

 

(1,028

)

Total deferred tax liabilities

 

 

(918

)

 

 

(1,028

)

Net deferred tax assets

 

 

58,459

 

 

 

46,823

 

Less valuation allowance

 

 

(58,593

)

 

 

(46,957

)

Net deferred tax assets (liabilities)

 

$

(134

)

 

$

(134

)

At December 31, 2014 and 2013, the Company had net operating loss carryforwards for federal and state income tax purposes of approximately $132.5 million and $111.5 million, respectively. The federal and state net operating loss carryforwards will expire from 2023 to 2034, unless previously utilized.

During the years ended December 31, 2014 and 2013, the Company recognized no amounts related to tax interest or penalties related to uncertain tax positions. The Company is subject to taxation in the United States and various state jurisdictions. The Company currently has no years under examination by any jurisdiction.

A valuation allowance has been established as realization of such deferred tax assets has not met the more likely-than-not threshold requirement. If the Company’s judgment changes and it is determined that the Company will be able to realize these deferred tax assets, the tax benefits relating to any reversal of the valuation allowance on deferred tax assets will be accounted for as a reduction to income tax expense. The tax valuation allowance increased by approximately $11.7 million and $3.8 million for the years ended December 31, 2014 and 2013, respectively.