Rigel Pharmaceuticals, 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, 2019

INCOME TAXES

Schedule of components of the entity's deferred tax assets

Significant components of our deferred tax assets are as follows (in thousands):


		December 31,
		2019			2018
Deferred tax assets
Net operating loss carryforwards		$	240,157		$	226,388
Orphan drug and research and development credits			59,603			55,276
Deferred compensation			8,817			7,155
Lease liabilities			6,989			—
Capitalized research and development expenses			2,282			424
Other, net			529			809
Deferred tax liabilities
Operating lease right-of-use asset			(6,719)			—
Total net deferred tax assets			311,658			290,052
Less: valuation allowance			(311,658)			(290,052)
Deferred tax assets, net of allowance		$	—		$	—

Schedule of reconciliation of the statutory federal income tax rate to the effective tax rate


		Year Ended December 31,
		2019		2018		2017
Federal statutory tax rate		(21.0)	%	(21.0)	%	(34.0)	%
Federal statutory rate reduction		—	%	—	%	160.2	%
State, Net of Federal Benefit		0.1	%	—	%	—	%
Valuation allowance		21.7	%	16.3	%	(126.5)	%
Stock compensation		2.8	%	8.2	%	5.7	%
Orphan drug and research and development credits		(5.1)	%	(3.7)	%	(3.6)	%
Other, net		1.5	%	0.2	%	(1.8)	%
Effective tax rate		0.0	%	0.0	%	0.0	%

Schedule of activity related to the entity's gross unrecognized tax benefits

The following table summarizes the activity related to our gross unrecognized tax benefits (in thousands):


		Year Ended December 31,
		2019			2018
Balance at the beginning of the year		$	7,849		$	7,430
Increase related to current year tax positions			509			419
Balance at the end of the year		$	8,358		$	7,849