INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

Significant components of the Company’s deferred tax assets at December 31, 2015 and 2014 are as follows ($ in thousands):

	December 31,
	2015		2014
Deferred tax assets:
Property, plant & equipment	$	1	$	688
Patents and other intangible assets		-		359
Accrued liabilities		503		119
Other		45		57
Net operating loss carryforwards – U.S.		11,511		3,524
Net operating loss carryforwards – Israel		5,757		9,655
Stock-based compensation		4,659		4,616
Gross deferred tax assets		22,476		19,018
Valuation allowance		(22,476)		(19,018)
Gross deferred tax assets after valuation allowance		-		-
Deferred tax liability – AmiKet IPR&D assets		(10,870)		(10,870)
Net deferred tax liability	$	(10,870)	$	(10,870)

A reconciliation of the federal statutory tax rate and the effective tax rates for the years ended December 31, 2015 and 2014 is as follows:

	For the Year Ended
	December 31,
	2015			2014
U.S. federal statutory tax rate		34.0	%		34.0	%
State income taxes, net of federal benefit		4.0			4.4
U.S. vs. foreign tax rate differential		(2.4)			(1.9)
Equity-based compensation		-			(4.5)
Other		(0.1)			1.4
Change in valuation allowance		(35.5)			(33.4)
Effective tax rate		-	%		-	%

A reconciliation of the Company’s NOLs for the years ended December 31, 2015 and 2014 is as follows ($ in thousands):

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows ($ in thousands):

	2015		2014
Balance at January 1,	$	50	$	40
Additions related to tax positions		-		10
Reductions related to tax positions		-		-
Balance at December 31,	$	50	$	50