Phio Pharmaceuticals Corp. - S-1 filing on 2016-10-21

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Components of Federal and State Income Tax Expense

before income taxes was generated in the United States. The components of federal and state income tax expense are as follows (in thousands):


	Year Ended December 31,
	2015			2014
Current
Federal	$	—		$	—
State		—			—

Total current		—			—
Deferred
Federal		(3,157	)		(2,727	)
State		(803	)		(583	)

Total deferred		(3,960	)		(3,310	)
Valuation allowance		3,960			3,310

Total income tax expense	$	—		$	—

Effect Income Tax Rate Reconciliation

The differences between the income taxes expected at the Federal statutory income tax rate and the reported income tax (benefit) expense is as follows:


	2015			2014
Federal statutory rate		34.0	%		34.0	%
State income taxes, net of federal benefit		4.8			4.2
Non-deductible expenses		(1.9	)		(2.1	)
Income tax credits		1.9			1.6
Valuation allowance		(38.8	)		(37.7	)

Effective tax rate		0.0	%		0.0	%

Components of Net Deferred Tax Assets

as a result of this change. The components of net deferred tax assets are as follows (in thousands):


	As of December 31,
	2015			2014
Net operating loss carryforwards	$	13,552		$	9,805
Tax credit carryforwards		442			261
Stock-based compensation		1,744			1,392
Licensing deduction deferral		5,979			6,367
Other timing differences		178			110

Gross deferred tax assets		21,895			17,935
Valuation allowance		(21,895	)		(17,935	)

Net deferred tax asset	$	—		$	—