XOMA Corporation Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Provision for Income Taxes (All Current)

The provision (benefit) for income taxes (all current) consists of the following (in thousands):

	Year Ended December 31,
	2018			2017
Federal	$	(97	)	$	1,649
State		(1	)		13
Total	$	(98	)	$	1,662

Reconciliation Between the Tax Provision Computed at the Federal Statutory Income Tax Rate and Actual Effective Income Tax Rate

Reconciliation between the tax provision computed at the federal statutory income tax rate and the Company’s actual effective income tax rate is as follows:

	Year Ended December 31,
	2018				2017
Federal tax at statutory rate		21		%		34		%
Stock compensation and other permanent differences		2		%		6		%
Tax credits		1		%		(4	)	%
Impact of 2017 Tax Act on change in deferred		—		%		128		%
Section 382 limitations		—		%		868		%
Valuation allowance		(23	)	%		(1,022	)	%
Total		1		%		10		%

Components of Net Deferred Tax Assets

The significant components of net deferred tax assets at December 31, 2018 and 2017 were as follows (in thousands):

	December 31,
	2018			2017
Capitalized research and development expenses	$	21,979		$	26,367
Net operating loss carryforwards		12,901			4,701
Research and development and other tax credit carryforwards		12,343			12,225
Stock compensation		4,732			3,680
Deferred revenue		4,100			3,928
Other		1,483			883
Total deferred tax assets		57,538			51,784
Valuation allowance		(57,538	)		(51,784	)
Net deferred tax assets	$	—		$	—

Schedule of Unrecognized Tax Benefits

The following table summarizes the Company's activity related to its unrecognized tax benefits (in thousands):

	Year Ended December 31,
	2018		2017
Balance at January 1	$	5,501	$	8,625
Increase related to current year tax position		—		581
Increase (decrease) related to prior year tax position		16		(3,705	)
Balance at December 31	$	5,517	$	5,501