DermTech, Inc. - 10-K filing on 2022-03-10

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Reconciliation of Income Tax Rate

The following table provides a reconciliation between income taxes computed at the federal statutory rate of 21% at December 31, 2021, 2020, and 2019, and the Company’s provision for income taxes

	Year ended December 31
	2021			2020			2019
Income tax at statutory rate		21.0	%		21.0	%		21.0	%
State tax, net of federal tax benefit		4.8			4.9			—
Permanent items		1.1			(0.1	)		(0.8	)
Tax credits		0.6			0.4			0.2
Other		(0.4	)		(0.5	)		—
Valuation allowance (decrease) increase		(27.1	)		(25.7	)		(20.4	)
Income tax expense		—	%		—	%		—	%

Schedule of Deferred Tax Assets and Liabilities from Federal and State income Taxes

Significant components of the Company’s deferred tax assets and liabilities from federal and state income taxes as of December 31, 2021, 2020, and 2019 are shown below (in thousands):

	December 31, 2021			December 31, 2020			December 31, 2019
Deferred tax assets:
Net operating loss	$	46,886		$	28,422		$	20,336
Research and development credits		2,411			1,631			1,400
Depreciation and amortization		—			14			33
Stock based compensation		2,126			653			119
Accruals and other		719			422			194
Operating lease liability		1,935			—			—
Deferred revenue		340			—			—
Total deferred tax assets		54,417			31,142			22,082

Deferred tax liabilities:
Depreciation and amortization		(32	)		—			—
Operating lease right-of-use assets		(1,972	)		—			—
Total deferred tax liabilities		(2,004	)		—			—
Net deferred tax assets before valuation allowance		52,413			31,142			22,082
Less: valuation allowance		(52,413	)		(31,142	)		(22,082	)
Net deferred tax assets	$	—		$	—		$	—