Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Taxes [Abstract]

(Loss) Income from Continuing Operations Before Income Taxes

For financial reporting purposes, (loss) income from continuing operations before income taxes includes the following components:

Income Tax Benefit

	December 31,
	2016		2015
United States	$	(6,358,000)	$	1,818,000
Foreign		(13,036,000)		(2,407,000)
Total	$	(19,394,000)	$	(589,000)

Our income tax benefit consists of the following components for 2016 and 2015:

	December 31,
	2016		2015
Current
Federal	$	-	$	-
State		-		-
Foreign		-		-
		-		-
		-		-
Deferred
Federal		-		-
State		-		-
Foreign		(556,000)		(73,000)
		(556,000)		(73,000)
Total	$	(556,000)	$	(73,000)

Components of Deferred Tax Assets

Significant components of our deferred tax assets and liabilities are as follows:

	December 31,
	2016		2015
Deferred tax assets/(liabilities)
Net operating loss carry-forwards	$	67,479,000	$	65,425,000
Research and orphan drug credit carry-forwards		3,109,000		5,181,000
Depreciation and amortization		4,000		(3,000)
Stock options and other		1,010,000		479,000
Intangible assets		(2,367,000)		(3,079,000)
Net deferred tax assets		69,235,000		68,003,000
Valuation allowance for deferred tax assets		(71,684,000)		(71,008,000)
Net deferred tax liabilities	$	(2,449,000)	$	(3,005,000)

Reconciliation of Statutory to Effective Tax Rates

	December 31,
	2016		2015
Percent of pre-tax income:
U.S. federal statutory income tax rate	34.0	%	34.0	%
Warrant liability and preferred stock conversion liability	8.0	%	573.8	%
Difference in foreign vs U.S. statutory rates	(1.5)	%	(21.8)	%
Stock option forfeitures & expirations	(0.6)	%	(138.2)	%
State taxes, net of federal benefit	(3.8)	%	-	%
Non-deductible stock issuance costs	(1.0)	%	(17.9)	%
Australia Refundable R&D tax offset	(5.2)	%	27.8	%
Effect of tax rate changes	0.3	%	12.4	%
Goodwill Impairment	(13.2)	%	-	%
Change in reserve of uncertain tax positions	(10.7)	%	-	%
All other	0.1	%	(2.9)	%
Subtotal	6.4	%	467.2	%
Change in valuation allowance	(3.5) )	%	(454.8)	%
Effective income tax rate	2.9	%	12.4	%