INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

The reconciliation between our provision for income taxes and the amounts computed by multiplying our loss before taxes by the U.S. statutory tax rate is as follows (in thousands):

	December 31,
	2016		2015
Benefit at U.S. statutory 34% tax rate	$	(2,512)	$	(1,696)
State taxes (benefit), net of federal effect		49		41
Research and development tax credits		-		-
Share-based compensation		159		184
Other		2		11
Change in valuation allowance		2,302		1,460
Provision for income taxes	$	-	$	-

Components Of Deferred Tax Assets

As of December 31, 2016 we had federal research and development tax credits of approximately $1.2 million, which expire in the years 2024 through 2034. We also had approximately $0.2 million of Indiana state research and development tax credits, which will expire in 2017.

The components of our deferred tax assets are as follows:

	December 31,
	2016		2015
	(in thousands)
Deferred tax assets:
Estimated future value of NOLs
- Federal	$	47,192	$	52,772
- State		2,135		2,050
Research and development tax credits		1,320		1,394
Share-based compensation		57		38
Other, net		332		368
Total deferred taxes		51,036		56,622
Valuation allowance		(51,036)		(56,622)
Net deferred tax assets	$	-	$	-