Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.6.0.2
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Provisions

The December 31, 2016, 2015 and 2014 income tax provision is as follows:

 

 

 

For the Year Ended December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. federal

 

$

 

 

$

 

 

$

 

State and local

 

 

2,015

 

 

 

622

 

 

 

6,171

 

Total current provision

 

 

2,015

 

 

 

622

 

 

 

6,171

 

Deferred:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. federal

 

 

6,124

 

 

 

 

 

 

 

State and local

 

 

42

 

 

 

 

 

 

 

Total deferred provision

 

 

6,166

 

 

 

 

 

 

 

Total tax provision

 

$

8,181

 

 

$

622

 

 

$

6,171

 

 

Schedule of Reconciliation of Income Tax Provision to Statutory Federal Income Tax Rate

A reconciliation of the total income tax provision tax rate to the statutory federal income tax rate of 34% for the years ended December 31, 2016, 2015 and 2014 is as follows:

 

 

 

For the Year Ended December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

Income taxes at statutory rates

 

$

1,272,242

 

 

$

(91,705

)

 

$

1,222,120

 

State income tax, net of federal benefit

 

 

2,054

 

 

 

411

 

 

 

4,132

 

Permanent items

 

 

171,704

 

 

 

171,963

 

 

 

111,001

 

Section 382 limitation expiration

 

 

 

 

 

 

 

 

1,712,466

 

Warrant liability

 

 

(156,498

)

 

 

(34,160

)

 

 

(947,432

)

Federal NOL expired

 

 

(206,133

)

 

 

 

 

 

 

Other

 

 

11,104

 

 

 

 

 

 

 

Research and development credit

 

 

(141,494

)

 

 

628,573

 

 

 

(143,114

)

Change in federal valuation allowance

 

 

(944,798

)

 

 

(674,460

)

 

 

(1,953,002

)

 

 

$

8,181

 

 

$

622

 

 

$

6,171

 

 

Deferred Income Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2016 and 2015 are as follows:

 

 

 

For the Year Ended December 31,

 

 

 

2016

 

 

2015

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Net operating loss carryforwards

 

$

6,786,922

 

 

$

9,008,344

 

Capitalization of patent costs, goodwill and amortization

 

 

332,901

 

 

 

441,076

 

Capitalization of acquisition costs

 

 

43,523

 

 

 

35,264

 

Research and AMT credits

 

 

1,689,883

 

 

 

1,421,251

 

Stock based compensation

 

 

160,182

 

 

 

180,675

 

Deferred lease obligation

 

 

182,550

 

 

 

274,164

 

Other timing differences

 

 

51,314

 

 

 

41,045

 

 

 

 

9,247,275

 

 

 

11,401,819

 

Less valuation allowance

 

 

(9,028,241

)

 

 

(11,103,399

)

Total deferred tax assets

 

$

219,034

 

 

$

298,420

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Fixed assets

 

 

(219,034

)

 

 

(298,420

)

Goodwill

 

 

(6,166

)

 

 

 

Total deferred tax liabilities

 

$

(225,200

)

 

$

(298,420

)

Total deferred tax assets (liabilities)

 

$

(6,166

)

 

$

 

 

Summary of Reconciliation of Unrecognized Tax Benefit Activity

The following table summarizes the reconciliation of the unrecognized tax benefits activity during the years ended December 31, 2016 and 2015:

 

 

 

For the Year Ended December 31,

 

 

 

2016

 

 

2015

 

Beginning unrecognized tax benefits

 

$

1,408,000

 

 

$

1,408,000

 

Decreases related to prior year tax positions

 

 

(53,000

)

 

 

 

Increases related to current year tax positions

 

 

177,000

 

 

 

 

Ending unrecognized tax benefits

 

$

1,532,000

 

 

$

1,408,000