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, 2013

Schedule of Deferred Tax Assets and Liabilities

The significant components of the Company’s deferred tax assets consisted of the following:

	As of December 31,
	2013		2012
($ in thousands)
Deferred tax assets:
Net operating loss carryforwards	$	31,450	$	19,572
Amortization of up-front fees		2,865		3,087
Amortization of in-process R&D		460		407
Stock compensation		2,827		1,522
Accruals and reserves		854		622
Tax credits		2,686		991
Total deferred tax assets		41,142		26,201
Valuation allowance		(41,142)		(26,201)
Net deferred tax assets	$		$

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,
	2013		2012		2011
Percentage of pre-tax income:
U.S. federal statutory income tax rate	35	%	35	%	35	%
State taxes, net of federal benefit	4	%	4	%	5	%
Acquired NOL					9	%
Credits	4	%	1	%	2	%
Non-deductible items	(2)	%	(2)	%	(21)	%
Other (1)	(1)	%	(5)	%	(2)	%
Change in valuation allowance	(40)	%	(33)	%	(28)	%
Effective income tax rate	0	%	0	%	0	%

(1) Other consists of: in 2013 state NOL true-up (1%), in 2012 state rate change (2%) and state NOL true up (3%) and in 2011, prior year NOL true-up (3%) and state rate change 1%.