Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

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, 2014, 2013 and 2012 includes the following (in thousands):

		Years ended December 31,
		2014		2013		2012
United States	$	36,829	$	(9,748)	$	(18,735)
Foreign		(44,768)		(3,574)		-
Loss before income taxes	$	(7,939)	$	(13,322)	$	(18,735)

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,
		2014		2013		2012
Computed "expected" tax benefit	$	(2,699)	$	(4,529)	$	(6,370)
IRC §382 adjustment		-		6,575		59,822
Change in the valuation allowance for deferred tax assets
attributable to operations and other adjustments		(7,158)		2,840		(42,124)
Research credit		(9,217)		(12,237)		(10,231)
State income taxes, net of federal tax effect		527		182		-
Equity based compensation expense		1,310		678		513
Intercompany license of intellectual property		-		5,440		-
Foreign tax rate differences		15,358		940		-
Non-recourse debt		2,056		(78)		(1,663)
Other		589		371		53
	$	766	$	182	$	-

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, 2014 and 2013 are presented below (in thousands):

		2014		2013
Deferred tax assets:
Net operating loss carryforward	$	109,751	$	132,101
Research credit carryforward		82,633		68,277
Capital loss carryforward		4,101		4,186
Non-recourse debt		26,060		27,769
Acquired intellectual property		26,344		29,452
Capitalization of inventory		11,021		9,429
Stock compensation expense		4,479		2,935
Accrued compensation		3,269		3,117
Other		697		555
Total deferred tax assets		268,355		277,821
Less valuation allowance		(268,355)		(277,821)
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, 2013	$	4,614
Additions for current year tax positions		-
Reductions for prior year tax positions		(677)
Balance as of December 31, 2013		3,937
Additions for current year tax positions		-
Reductions for prior year tax positions		-
Balance as of December 31, 2014	$	3,937