| Schedule of income taxes by jurisdiction |
The income taxes by jurisdiction consist of the following for the years ended December 31, 2014 and 2015:
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Year Ended December 31, 2014 |
|
Year Ended December 31, 2015 |
U.S. federal |
|
|
|
|
Current |
$ |
— |
|
|
$ |
— |
|
Deferred |
— |
|
|
— |
|
Total U.S. federal |
— |
|
|
— |
|
U.S. state and local |
|
|
|
|
Current |
1,000 |
|
|
1,000 |
|
Deferred |
— |
|
|
— |
|
Total U.S. state and local |
1,000 |
|
|
1,000 |
|
Total income taxes |
$ |
1,000 |
|
|
$ |
1,000 |
|
|
| Schedule of income taxes differ from the amounts computed by applying the U.S. federal income tax rate to pretax income (loss) before income taxes |
ncome taxes differ from the amounts computed by applying the U.S. federal income tax rate to pretax income (loss) before income taxes as a result of the following for the years ended December 31, 2014 and 2015:
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Year ended December 31, 2014 |
|
Year ended December 31, 2015 |
Expected income tax expense |
$ |
(3,308,000 |
) |
|
$ |
(3,291,000 |
) |
State income tax (benefit), net of federal benefit and federal valuation allowance |
1,000 |
|
|
1,000 |
|
Valuation Allowance (net of state) |
2,868,000 |
|
|
3,426,000 |
|
Permanent Differences: |
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|
|
|
Stock Options |
— |
|
|
131,000 |
|
Change in Fair Market Value — Financing Warrant Expenses |
130,000 |
|
|
— |
|
Other |
147,000 |
|
|
10,000 |
|
Interest Expenses — Disqualified Debt |
514,000 |
|
|
— |
|
Research & Development Credit |
(169,000 |
) |
|
(174,000 |
) |
Adjustment to Deferred Taxes |
(182,000 |
) |
|
(102,000 |
) |
Total provision for income taxes |
$ |
1,000 |
|
|
$ |
1,000 |
|
|
| Schedule of components of deferred income tax |
Deferred income tax reflects the tax effects of temporary differences that gave rise to significant portions of our deferred tax assets and liabilities. Deferred income taxes consisted of the following as of December 31, 2014 and December 31, 2015:
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Year ended December 31, 2014 |
|
Year ended December 31, 2015 |
Deferred tax assets—current: |
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|
|
|
Accrued Expenses |
|
$ |
3,000 |
|
|
$ |
— |
|
Accrued Payroll |
|
6,000 |
|
|
— |
|
Deferred Rent |
|
36,000 |
|
|
— |
|
Total current assets |
|
45,000 |
|
|
— |
|
Deferred tax assets—long term: |
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|
|
|
|
Accrued Payroll |
|
— |
|
|
95,000 |
|
Intangibles |
|
779,000 |
|
|
763,000 |
|
Organization Cost |
|
17,000 |
|
|
— |
|
Start-up Expenditures |
|
1,691,000 |
|
|
— |
|
Research & Development Credit |
|
492,000 |
|
|
804,000 |
|
Net Operating loss |
|
1,374,000 |
|
|
6,592,000 |
|
Stock Compensation |
|
140,000 |
|
|
379,000 |
|
New Jobs Credit |
|
7,000 |
|
|
7,000 |
|
Total long-term assets |
|
4,500,000 |
|
|
8,640,000 |
|
Total deferred tax assets |
|
4,545,000 |
|
|
8,640,000 |
|
Less: Valuation Allowance |
|
(4,520,000 |
) |
|
(8,639,000 |
) |
Deferred tax liabilities—current: |
|
— |
|
|
— |
|
Total current liabilities |
|
— |
|
|
— |
|
Deferred tax liabilities—long term: |
|
|
|
|
|
Fixed Assets |
|
(25,000 |
) |
|
(1,000 |
) |
Total long-term liabilities |
|
(25,000 |
) |
|
(1,000 |
) |
Total deferred tax liabilities |
|
(25,000 |
) |
|
(1,000 |
) |
Net deferred tax assets |
|
$ |
— |
|
|
$ |
— |
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|