Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Taxes Tables

Income tax (benefit) provision

The income tax provision consists of the following ($ in thousands):

	For the Years Ended December 31,
	2015			2014
Federal
Current	$	-		$	-
Deferred		16,374			5,453
Increase in valuation allowance		(16,374	)		(5,453
State and Local
Current		-			-
Deferred		837			(44	)
Increase in valuation allowance		(837	)		44
Change in valuation allowance		(17,211	)		(5,409	)
Income tax provision (benefit)	$	-		$	-

Reconciliation of the expected tax expense (benefit)

The following is a reconciliation of the U.S. federal statutory rate to the effective income tax rates for the years ended December 31, 2015 and 2014:

	For the Years Ended December 31,
	2015			2014
U.S. statutory federal rate		(34.00	)%		(34.00	)%
State income tax, net of federal benefit		(2.52	)		(3.43	)
Other Permanent Differences		(0.01	)		0.11
Change in Derivative Liability		-			(0.06)
State rate change effect		0.75			-
Reduction due to change in NOL and other true ups		2.35			55.1
		(33.43	)		17.72
Valuation Allowance		33.43			(17.72	)
Income tax provision (benefit)		-	%		-	%

Deferred tax assets and liabilities

At December 31, 2015 and 2014, the Company’s deferred tax assets and liabilities consisted of the effects of temporary differences attributable to the following ($ in thousands):

	For the Years Ended December 31,
	2015			2014
Deferred tax assets
Net operating loss carryforward	$	7,843		$	4,992
Stock-based compensation		8,014			8,087
Patent portfolio and other		17,298			2,865
Total deferred tax assets		33,155			15,944
Valuation allowance		(33,155	)		(15,944	)
Deferred tax assets, net of allowance	$	-		$	-