Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income before income taxes consists of:

The provision for income taxes differs from the amount computed by applying the statutory rate as follows:

	Year Ended December 31,
(in thousands)	2016			2015
Income taxes using U.S federal statutory rate	$	(6,110	)	$	(4,999	)
Loss of tax benefit of net operating loss carryforwards		68,795			—
Loss of tax benefit of state net operating loss carryforwards		13,891			—
Loss of tax benefit of tax credit carryforwards		4,023			—
Amortization of gain on IP migration		767			767
State income taxes, net of federal benefit		(2,576	)		380
Foreign rate differential		1,141			920
Valuation allowance		(75,407	)		2,649
Derivative charge		(4,345	)		(192	)
Stock option exercises and cancellations		53			674
Research and development costs		(250	)		(199	)
Other		18			—
	$	—		$	—

Significant components of the Company’s deferred tax assets are as follows:

(in thousands)	December 31, 2016		December 31, 2015
Deferred tax assets:
Employee compensation accruals	$	1,386	$	1,279
Accrued liabilities		343		633
Research tax credits		22		3,796
Other		55		66
Net operating losses		6,194		77,906
Total deferred tax assets	$	8,000	$	83,680

Deferred tax liabilities:
Beneficial conversion feature		906		—
Total deferred tax liabilities	$	906	$	—

Valuation allowance		7,094		83,680
Net deferred tax assets	$	—	$	—

The change in valuation allowance is as follows:

(in thousands)	December 31, 2016			December 31, 2015
Beginning balance	$	83,680		$	81,223
Charged to costs and expenses		(75,407	)		2,649
Charged to additional paid-in capital		(1,854	)		-
Charged to retained earnings		1,010			-
Charged to other comprehensive income		(335	)		(192	)
Ending balance	$	7,094		$	83,680