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, 2023

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) income is as follows for the years ended December 31, 2023 and 2022:

	2023			2022
Income tax (benefit) provision at federal statutory rate		(21.0	)%		21.0	%
Valuation allowance		23.8			(21.4	)
State income tax, net of federal benefit		(4.9	)		4.9
Financing contracts		3.2			—
Stock options		1.0			0.4
Research and development		(3.9	)		(3.1	)
Other		1.9			(0.1	)
Effective tax rate		0.1	%		1.7	%

Components of Income Tax Provision (Benefit)

The components of income tax provision (benefit) consisted of the following for the years ended December 31, 2023 and 2022 (in thousands):

	2023			2022
(Loss) income before income taxes:	$	(9,974	)	$	18,203

Current:
Federal	$	2		$	279
State		10			36
Total current tax provision (benefit)		12		$	315
Deferred:
Federal		—			—
State		—			—
Total tax provision (benefit)	$	12		$	315

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, 2023 and 2022 (in thousands):

	2023			2022
Deferred tax assets:
Federal and state operating loss carryforwards	$	12,780		$	13,087
Acquired intangibles		547			547
Deferral of research and development costs		3,794			2,820
Organizational costs		6			7
Other		72			62
Stock-based compensation		1,835			1,152
Research and development credit carryforward		1,107			731
Subtotal		20,141			18,406
Valuation allowance		(20,141	)		(17,770	)
Total deferred tax assets, net of valuation allowance		—			636
Deferred tax liabilities:
Deferred revenue		—			(636	)
Total deferred tax liabilities		—			(636	)
Net deferred tax assets	$	—		$	—