Ocuphire Pharma, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

Income Taxes

6 Months Ended

Jun. 30, 2016

13. Income Taxes

No provision for federal and state income taxes was required for the three and six months ended June 30, 2016 and 2015 due to the Company’s operating losses and increased deferred tax asset valuation allowance. At June 30, 2016 and December 31, 2015, the Company had unused net operating loss carry-forwards of approximately $107,101,000 and $98,954,000, respectively, which expire at various dates through 2036. Some of this amount may be subject to annual limitations under certain provisions of the Internal Revenue Code related to “changes in ownership.”

As of June 30, 2016 and December 31, 2015, the deferred tax assets related to the aforementioned carry-forwards have been fully offset by valuation allowances, because significant utilization of such amounts is not presently expected in the foreseeable future.

Deferred tax assets and valuation allowances consist of:



	June 30,		December 31,
	2016		2015

Net Operating Loss Carryforwards	$	41,769,000	$	38,592,000
Stock Compensation Expense		1,905,000		1,891,000
Book tax differences on assets and liabilities		309,000		380,000
Valuation Allowance		(43,983,000)		(40,863,000)

Net Deferred Tax Assets	$	-	$	-

The Company files income tax returns in the U.S. federal and Maryland state jurisdictions. Tax years for fiscal 2012 through 2015 are open and potentially subject to examination by the federal and Maryland state taxing authorities.