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, 2018

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,
		2018			2017
Deferred tax assets
Net operating loss carryforwards		$	226,388		$	212,153
Orphan drug and research and development credits			55,276			51,744
Deferred compensation			7,155			12,261
Capitalized research and development expenses			424			4,690
Other, net			809			815
Total deferred tax assets			290,052			281,663
Valuation allowance			(290,052)			(281,663)
Net deferred tax assets		$	—		$	—

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


		Year Ended December 31,
		2018		2017		2016
Federal statutory tax rate		(21.0)	%	(34.0)	%	(34.0)	%
Federal statutory rate reduction		—	%	160.2	%	—	%
State, Net of Federal Benefit		—	%	—	%	—	%
Valuation allowance		16.3	%	(126.5)	%	35.0	%
Stock compensation		8.2	%	5.7	%	5.0	%
Orphan drug and research and development credits		(3.7)	%	(3.6)	%	(7.3)	%
Other, net		0.2	%	(1.8)	%	1.3	%
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,
		2018			2017
Balance at the beginning of the year		$	7,430		$	6,903
Increase related to prior year tax positions			—			—
Increase related to current year tax positions			419			527
Balance at the end of the year		$	7,849		$	7,430