Ocuphire Pharma, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Reconciliation of Statutory to Effective Income Tax Rate

A reconciliation of income tax computed at the statutory federal income tax rate to the provision (benefit) for income taxes included in the accompanying statements of comprehensive loss is as follows for the years ended December 31, 2020 and 2019:

	2020			2019
Income tax (benefit) provision at federal statutory rate		(21.0	)%		(21.0	)%
Valuation allowance		13.8			24.2
State income tax, net of federal benefit		(4.7	)		(4.7	)
Acquired in-process research and development expense		8.8			—
Warrants		7.6			—
Convertible notes		(3.3	)		1.2
Stock options		(0.1	)		0.2
Research and development		(1.1	)		—
Pass through entity and other		—			0.1
Effective tax rate		—	%		—	%

Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are summarized in the tables below as of December 31, 2020 and 2019:

	2020			2019
Deferred tax assets:
Federal and state operating loss carryforwards	$	3,351		$	1,228
Acquired intangibles		547			—
Accruals		—			87
Convertible notes		—			454
Organizational costs		8			9
Share-based compensation		466			81
Research and development		275			—
Subtotal		4,647			1,859
Valuation allowance		(4,647	)		(1,859	)
Total deferred tax assets, net of valuation allowance		—			—
Deferred tax liabilities:
Total deferred tax liabilities		—			—
Net deferred tax assets	$	—		$	—