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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Schedule of effective income tax rate reconciliation

 

 

 

 

 

 

 

 

 

 

December 31, 

 

 

    

2014

    

2015

    

2016

 

Income tax computed at federal statutory tax rate

 

34.0

%  

34.0

%  

34.0

%

State taxes, net of federal benefit

 

6.3

%  

3.2

%  

3.3

%

State taxes rate change, net of federal benefit

 

30.4

%

 

 —

 

International operations

 

6.6

%  

(4.8)

%  

(0.7)

%

Research and development credits

 

(22.6)

%  

3.8

%  

4.0

%

Orphan drug credits

 

(57.4)

%  

0.9

%  

0.6

%

Equity compensation

 

16.6

%  

(2.0)

%  

(3.7)

%

Other

 

(2.1)

%  

 

 —

 

Change in valuation allowance

 

(11.8)

%  

(35.1)

%  

(37.5)

%

Total

 

 

 —

 

 —

 

 

Schedule of deferred tax assets and liabilities

 

 

 

 

 

 

 

 

 

 

December 31, 

 

 

 

2015

 

2016

 

Deferred tax assets

    

 

 

    

 

 

 

Net operating loss carryforwards

 

$

73,678,000

 

$

78,021,000

 

Research and development credit carryforwards

 

 

12,398,000

 

 

14,143,000

 

Orphan drug credit

 

 

6,815,000

 

 

7,235,000

 

Stock options

 

 

5,568,000

 

 

7,105,000

 

Other

 

 

235,000

 

 

562,000

 

Deferred tax assets

 

 

98,694,000

 

 

107,066,000

 

Deferred tax liabilities

 

 

 

 

 

 

 

Deferred revenue

 

 

(8,049,000)

 

 

 —

 

Property and equipment

 

 

(361,000)

 

 

(337,000)

 

Deferred tax liabilities

 

$

(8,410,000)

 

$

(337,000)

 

Net deferred tax asset before valuation allowance

 

$

90,284,000

 

$

106,729,000

 

Less valuation allowance

 

 

(90,284,000)

 

 

(106,729,000)

 

Net deferred tax assets

 

$

 —

 

$

 —

 

 

Schedule of unrecognized tax benefits

 

 

 

 

 

 

 

Unrecognized Tax Positions

Balance at January 1, 2016

$

 —

Additions based on tax positions related to the current year

 

3,405,000

Additions for tax positions of prior years

 

 —

Reductions for tax positions of prior years

 

 —

Settlements

 

 —

Balance at December 31, 2016

$

3,405,000

Balance at December 31, 2016

$

3,405,000