Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Effective Income Tax Rate Reconciliation

Reconciliations of the differences between the benefit for income taxes and income taxes at the statutory U.S. federal income tax rate is as follows (dollars in thousands):

	2019						2018
	Amount			Percent of Pretax Income			Amount			Percent of Pretax Income
Income taxes from continuing operations at statutory rate	$	(11,279	)		21.0	%	$	(4,033	)		21.0	%
State income taxes		(3,778	)		7.0	%		(985	)		5.1	%
State effect of permanent items		285			(0.5	)%		(585	)		3.0	%
Stock-based compensation		100			(0.2	)%		94			(0.5	)%
Deferred rate change		(905	)		1.6	%		438			(2.3	)%
Warrants issuance		733			(1.4	)%		(2,492	)		13.0	%
Other		883			(1.5	)%		71			(0.3	)%
NOL sale		—			—			(3,938	)		20.5	%
R&D credit adjustment		(2,760	)		5.1	%		—			—
Increase in valuation allowance		16,721			(31.1	)%		4,694			(24.4	)%
Total income tax benefit	$	—			—	%	$	(6,736	)		35.1	%

Schedule of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities as of December 31, 2019 and 2018 are as follows (in thousands):

	December 31,
	2019			2018
Noncurrent deferred tax assets (liabilities)
Accrued expenses	$	107		$	132
Stock-based compensation		2,436			1,911
Lease liability		945			—
Other		(856	)		(31	)
Net operating loss carryforwards		58,073			44,730
Research and development credits		5,984			3,226
Total deferred tax assets		66,689			49,968
Valuation allowances		(66,689	)		(49,968	)
Net deferred tax assets	$	—		$	—

Schedule of Unrecognized Tax Benefits Roll Forward

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits as of December 31, 2019 and 2018 (in thousands):

	December 31,
	2019		2018
Unrecognized tax benefit—January 1	$	436	$	436
Additions for tax positions of current period		—		—
Additions for tax positions of prior periods		—		—
Deferred rate change		—		—
Unrecognized tax benefit—December 31	$	436	$	436