Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of the income tax benefit computed at the Federal statutory rates to our recorded tax benefit for the years ended December 31, 2013, 2012, and 2011 is as follows:

(in thousands)	December 31,
	2013			2012			2011
Income tax benefit, statutory rates	$	15,373		$	12,687		$	7,128
State taxes on income, net of Federal benefit		2,922			2,288			1,633
Research and development tax credit		517			332			662
Employee related		(766	)		(988	)		(1,758	)
Warrant valuation related		259			189			1,210
Income tax benefit		18,305			14,508			8,875
Valuation allowance		(18,305	)		(14,508	)		(8,875	)
Income tax benefit	$	–		$	–		$	–

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities, at December 31, 2013 and 2012, are as follows:

(in thousands)	December 31,
	2013			2012
Long-term deferred tax assets:
Net operating loss carryforwards (Federal and state)	$	175,258		$	160,522
Research and development tax credits		10,604			9,412
Compensation expense on stock		3,276			3,154
Charitable contribution carryforward		7			7
Inventory reserve		198			–
Deferred revenue		53			–
Other accrued		1,024			524
Depreciation		2,714			2,665
Capitalized research and development		1,326			1,516
Total long-term deferred tax assets		194,460			177,800
Less: valuation allowance		(194,460	)		(177,800	)
Deferred tax assets, net of valuation allowance	$	–		$	–