Fortress Biotech, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Schedule of Deferred Tax Assets and Liabilities

The significant components of the Company’s deferred taxes consist of the following:

		As of December 31,
		2016			2015
Deferred tax assets:
Net operating loss carryforwards		$	76,486		$	54,249
Amortization of up-front fees			7,277			4,442
Amortization of in-process R&D			742			599
Stock compensation			10,899			8,158
Accruals and reserves			4,025			210
Tax Credits			6,305			4,583
Start Up Costs			98			-
Unrealized loss on investments			1,095			358
Total deferred tax assets			106,927			72,599
Less valuation allowance			(94,688)			(66,730)
Net deferred tax assets		$	12,239		$	5,869

Deferred tax liabilities:
Intangibles		$	(4,449)		$	-
Basis in subsidiary			(7,790)			(5,869)
Total deferred tax assets, net		$	-		$	-

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the statutory tax rates and the effective tax rates is as follows:

		For the Year Ended December 31,
		2016			2015			2014
Percentage of pre-tax income:
U.S. federal statutory income tax rate			35	%		35	%		35	%
State taxes, net of federal benefit			3	%		5	%		5	%
Credits			2	%		1	%		6	%
Non-deductible items			(4)	%		-	%		(1)	%
Provision to return			2	%		-	%		-	%
Stock based compensation shortfall			(2)	%		(1)	%		-	%
Other			-	%		1	%		-	%
Change in valuation allowance			(33)	%		(44)	%		(45)	%
Change in subsidiary basis			(3)	%		3	%		-	%
Effective income tax rate			-	%		-	%		-	%