Rubius Therapeutics, Inc. - 10-K filing on 2019-03-28

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Taxes

Schedule of reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax


		Year ended
		December 31,
		2018		2017
Federal statutory income tax rate		(21.0)	%	(34.0)	%
State taxes, net of federal benefit		(4.8)		(3.2)
Federal and state research and development tax credits		(2.9)		(1.4)
Stock‑based compensation expense		4.5		12.8
Other		0.5		0.7
Remeasurement of deferred taxes due to the Tax Cuts and Jobs Act		—		11.1
Increase in deferred tax asset valuation allowance		23.7		14.0
Effective income tax rate		—	%	—	%

Summary of changes in the valuation allowance for deferred tax assets


		December 31,
		2018			2017
Deferred tax assets:
Net operating loss carryforwards		$	25,508		$	10,422
Research and development tax credit carryforwards			3,824			1,241
Accrued expenses			1,139			413
Capitalized intellectual property costs			764			367
Capitalized research and development expense			120			131
Stock‑based compensation expense			2,652			375
Total deferred tax assets			34,007			12,949
Deferred tax liabilities:
Depreciation and other			(341)			(374)
Total deferred tax liabilities			(341)			(374)
Valuation allowance			(33,666)			(12,575)
Net deferred tax assets		$	—		$	—

Net deferred tax assets


		Year ended
		December 31,
		2018			2017
Valuation allowance as of beginning of year		$	12,575		$	6,454
Decreases recorded as benefit to income tax provision			—			(4,887)
Increases recorded to income tax provision			21,091			11,008
Valuation allowance as of end of year		$	33,666		$	12,575