Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Taxes Tables

Components of loss before income taxes, domestic and foreign

The components of loss before income taxes for the years ended December 31, 2013, 2012 and 2011 includes the following (in thousands):

		Years ended December 31,
		2013		2012		2011
United States	$	(9,748)	$	(18,735)	$	(36,249)
Foreign		(3,574)		-		-
Loss before income taxes	$	(13,322)	$	(18,735)	$	(36,249)

Reconciliation of U.S. statutory income tax rate to company's effective tax rate

Income tax differed from the amounts computed by applying the U.S. federal income tax rate of 34% to loss before income tax expense (benefit) as a result of the following (in thousands):

		Years ended December 31,
		2013		2012		2011
Computed "expected" tax benefit	$	(4,529)	$	(6,370)	$	(12,325)
Expiration of tax attributes		-		-		360
IRC §382 adjustment		6,575		59,822		94,442
Change in the valuation allowance for deferred tax assets
attributable to operations and other adjustments		2,840		(42,124)		(70,514)
U.S. and foreign credits		(12,237)		(10,231)		(11,732)
State income taxes, net of federal tax effect		182		-		-
Equity based compensation expense		678		513		578
Intellectual property		5,440		-		-
Foreign tax rate differences		940		-		-
Other		293		(1,610)		(791)
	$	182	$	-	$	18

Schedule of tax effects of temporary differences that give rise to deferred tax assets and liabilities

The tax effects of temporary differences that give rise to the deferred tax assets at December 31, 2013 and 2012 are presented below (in thousands):

		2013		2012
Deferred tax assets:
Net operating loss carryforward	$	132,101	$	140,416
Research credit carryforward		68,277		49,960
Capital loss carryforward		4,186		4,169
Non-recourse debt		27,769		32,619
Acquired intellectual property		29,452		29,287
Capitalization of inventory		9,429		13,146
Stock compensation expense		2,935		5,631
Accrued compensation		3,117		2,105
Other		555		273
Total deferred tax assets		277,821		277,606
Less valuation allowance		(277,821)		(277,606)
Deferred tax assets		-		-
Deferred tax liabilities		-		-
Net deferred tax asset (liability)	$	-	$	-

Reconciliation of beginning and ending amount of unrecognized tax benefits

A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits (excluding interest and penalties) is as follows (in thousands):

	Unrecognized
		Tax Benefits
Balance as of January 1, 2012	$	4,614
Additions for current year tax positions		-
Reductions for prior year tax positions		-
Balance as of December 31, 2012		4,614
Additions for current year tax positions		-
Reductions for prior year tax positions		(677)
Balance as of December 31, 2013	$	3,937