Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2013
Component of Consolidated Income (Loss) Before Provision for Income Taxes

Consolidated income (loss) before provision for income taxes consisted of the following (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2013

 

 

2012

 

 

2011

 

U.S.

 

$

(67,004

)

 

$

(70,792

)

 

$

(49,990

)

Non U.S.

 

 

284

 

 

 

843

 

 

 

1,393

 

Total

 

$

(66,720

)

 

$

(69,949

)

 

$

(48,597

)

 
Difference Between Consolidated Income Tax Benefit and Amount Computed by Federal Statutory Income Tax Rate

No income tax expense was recorded for the years ended December 31, 2013, 2012 and 2011 due to net operating loss carryforwards to offset the net income at Dynavax Europe and a valuation allowance which offsets the deferred tax assets. The difference between the consolidated income tax benefit and the amount computed by applying the federal statutory income tax rate to the consolidated loss before income taxes was as follows (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2013

 

 

2012

 

 

2011

 

Income tax benefit at federal statutory rate

 

$

(22,678

)

 

$

(23,650

)

 

$

(16,523

)

State tax

 

 

(178

)

 

 

(89

)

 

 

(2,586

)

Business credits

 

 

(2,515

)

 

 

-

 

 

 

(1,394

)

Deferred compensation charges

 

 

3,072

 

 

 

1,002

 

 

 

595

 

Change in valuation allowance

 

 

22,354

 

 

 

21,966

 

 

 

18,099

 

Change in foreign tax rates

 

 

-

 

 

 

-

 

 

 

(34

)

Change in the fair value measurements

 

 

-

 

 

 

-

 

 

 

286

 

Non-deductible debt discount

 

 

-

 

 

 

-

 

 

 

509

 

Deemed dividend

 

 

-

 

 

 

-

 

 

 

273

 

Prior year true up

 

 

-

 

 

 

-

 

 

 

-

 

Other

 

 

(55

)

 

 

771

 

 

 

775

 

Total income tax expense

 

$

-

 

 

$

-

 

 

$

-

 

 
Component of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities as of December 31, 2013 and 2012 consisted of the following (in thousands):

 

 

 

December 31,

 

 

 

2013

 

 

2012

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Net operating loss carry forwards

 

$

147,655

 

 

$

127,529

 

Research tax credit carry forwards

 

 

21,336

 

 

 

18,163

 

Accruals and reserves

 

 

9,501

 

 

 

8,529

 

Capitalized research costs

 

 

10,662

 

 

 

12,757

 

Deferred revenue

 

 

2,486

 

 

 

2,180

 

Other

 

 

1,222

 

 

 

1,221

 

 

 

 

192,862

 

 

 

170,379

 

Less valuation allowance

 

 

(192,733

)

 

 

(170,232

)

Total deferred tax assets

 

 

129

 

 

 

147

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Fixed Assets

 

 

(162

)

 

 

(86

)

Other

 

 

33

 

 

 

(61

)

Total deferred tax liabilities

 

 

(129

)

 

 

(147

)

Net deferred tax assets

 

$

-

 

 

$

-