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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Components of Income Tax Expense

The components of income tax expense are as follows:

 

 

 

Years Ended December 31,

 

 

 

2018

 

 

2017

 

Current:

 

 

 

 

 

 

 

 

Federal

 

$

 

 

$

 

State

 

 

3,526

 

 

 

2,921

 

Total current income tax expense

 

$

3,526

 

 

$

2,921

 

 

 

 

 

 

 

 

 

 

Deferred:

 

 

 

 

 

 

 

 

Federal

 

$

 

 

$

 

State

 

 

 

 

 

 

Total deferred income tax expense

 

$

 

 

$

 

Total income tax expense

 

$

3,526

 

 

$

2,921

 

Schedule of Difference in Actual Income Tax Expense Computed by Applying the Statutory Federal Income Tax Rate to Loss Before Income Taxes

The Company’s actual income tax expense for the years ended December 31, 2018 and 2017 differ from the expected amount computed by applying the statutory federal income tax rate to loss before income taxes as follows:

 

 

 

Years Ended December 31,

 

 

 

2018

 

 

2017

 

Computed tax (benefit) at statutory rate (2018: 21%, 2017:

   34%)

 

$

(3,454,582

)

 

$

(6,445,413

)

State taxes, net of federal benefit

 

 

(384,035

)

 

 

(532,952

)

Stock-based compensation

 

 

82,024

 

 

 

231,396

 

Foreign tax rate differential

 

 

(3,158

)

 

 

 

Return to provision

 

 

(31,111

)

 

 

(15,375

)

Other

 

 

51,598

 

 

 

20,292

 

Research and development tax credit - state

 

 

(511,845

)

 

 

(576,525

)

Research and development tax credit - federal

 

 

(506,364

)

 

 

(440,058

)

Federal rate change on deferred items as of enactment date

 

 

 

 

 

16,232,211

 

Uncertain tax position adjustment for prior periods

 

 

1,029,115

 

 

 

 

Increase (decrease) in valuation allowance

 

 

3,731,884

 

 

 

(8,470,655

)

 

 

$

3,526

 

 

$

2,921

 

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities comprise the following:

 

 

 

Years Ended December 31,

 

 

 

2018

 

 

2017

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Net operating loss carryforwards

 

$

33,431,082

 

 

$

29,475,597

 

Research and development credits

 

 

3,076,441

 

 

 

3,114,091

 

Deferred revenue

 

 

86,567

 

 

 

204,061

 

Inventory reserve

 

 

9,645

 

 

 

15,134

 

Fixed assets and intangibles

 

 

223,767

 

 

 

147,395

 

Accrued NuvoGen liability

 

 

1,720,335

 

 

 

1,952,567

 

Accrued expense

 

 

86,034

 

 

 

24,500

 

Other

 

 

106,913

 

 

 

74,986

 

 

 

 

38,740,784

 

 

 

35,008,331

 

Valuation allowance

 

 

(38,740,784

)

 

 

(35,008,331

)

Deferred tax asset, net

 

$

 

 

$

 

Summary of Federal Net Operating Loss Carryforwards The Company’s federal NOL carryforwards have the following expiration dates:

 

 

Year of Expiration

 

Carryforwards

 

Federal NOL carryforwards

 

 

 

 

 

 

 

 

2021

 

$

211,806

 

 

 

2023

 

 

1,635,651

 

 

 

2024

 

 

1,217,290

 

 

 

2025

 

 

1,409,498

 

 

 

2026

 

 

1,175,594

 

 

 

2027

 

 

1,676,458

 

 

 

2028

 

 

3,037,785

 

 

 

2029

 

 

3,753,314

 

 

 

2030

 

 

623,235

 

 

 

2031

 

 

5,435,312

 

 

 

2032

 

 

10,913,787

 

 

 

2033

 

 

12,095,966

 

 

 

2034

 

 

14,190,409

 

 

 

2035

 

 

21,112,183

 

 

 

2036

 

 

24,302,042

 

 

 

2037

 

 

18,986,265

 

 

 

2038

 

 

16,983,240

 

 

 

 

 

$

138,759,835

 

 

Schedule of Reconciliation of Gross Unrecognized Tax Benefits

A reconciliation of the Company’s gross unrecognized tax benefits is as follows:

 

 

 

Years Ended December 31,

 

 

 

2018

 

 

2017

 

Balance at beginning of year

 

$

 

 

$

 

Increases to prior positions

 

 

1,029,115

 

 

 

 

 

Increases for current year positions

 

 

509,105

 

 

 

 

Balance at end of year

 

$

1,538,220

 

 

$