Disc Medicine, Inc. - 10-K filing on 2022-03-10

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Reconciliation of the Statutory Federal Income Tax Rate

A reconciliation of income taxes computed using the statutory federal tax rate to the Company’s effective income tax rate as of December 31, 2021 and 2020 are as follows:


	Year Ended December 31,
	2021			2020
U.S. federal statutory income tax rate		21.0	%		21.0	%
State and local taxes, net of federal benefit		4.8	%		5.4	%
Research and development credits		2.9	%		3.0	%
Other		0.3	%		0.3	%
Change in valuation allowance		(29.0	)%		(29.7	)%
Effective income tax rate		0.0	%		0.0	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets were as follows (in thousands):


	Year Ended December 31,
	2021			2020
Deferred tax assets:
Net operating loss carryforwards	$	43,542		$	27,469
Research and development credits		5,938			3,866
Other temporary differences		2,772			681
Gross deferred tax assets		52,252			32,016
Deferred tax liabilities:
Depreciation		—			—
Stock-based compensation		—			—
Debt discount		—			(609	)
Gross deferred tax liabilities		—			(609	)
Net deferred tax assets		52,252			31,407
Valuation allowance		(52,252	)		(31,407	)
Net deferred tax assets	$	—		$	—