Dyne Therapeutics, Inc. - 10-K filing on 2022-03-10

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate is as follows:


	Year Ended December 31,
	2021			2020
Federal income tax expense at statutory rate		21	%		21	%
State taxes—net of federal benefit		5			5
Change in fair value of preferred stock tranche obligations		—			—
Permanent differences and other		(1	)		—
Federal & state R&D credits		2			1
Increase in valuation allowance		(27	)		(27	)
Effective income tax rate		0	%		0	%

Significant components of the Company’s net deferred tax assets at December 31, 2021 and 2020 are as follows:


	Year Ended December 31,
(in thousands)	2021			2020
Deferred tax assets:
Stock-based compensation	$	2,333		$	1,349
Net operating loss carryforwards		51,500			18,858
Credit carryforwards		4,799			1,155
Fixed assets		705			—
Accrued expenses		5,205			580
Lease liability		8,916			—
Total deferred tax assets		73,458			21,942
Valuation allowance		(63,546	)		(21,899	)
Total net deferred tax assets		9,912			43
Deferred tax liabilities:
Fixed assets		—			(43	)
Right of use asset		(9,912	)		—
Total deferred tax liability		(9,912	)		(43	)
Total deferred tax assets (liabilities)	$	—		$	—

Changes in the valuation allowance were as follows:


	Year Ended December 31,
	2021		2020
Valuation allowance at the beginning of year	$	21,899	$	5,607
Decreases recorded as benefit to income tax provision		—		—
Increases recorded to income tax provision		41,647		16,292
Valuation allowance at the end of year	$	63,546	$	21,899