Processa Pharmaceuticals, Inc. Annual report pursuant to Section 13 and 15(d)

Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Policies)

12 Months Ended

Dec. 31, 2013

	December 31, 2013	December 31, 2012
Deferred Tax Assets:
Net operating loss carry forward - Federal	$ 1,876,666	$ 1,134,761
Net operating loss carry forward - State	191,386	--
Contribution carry forward	188	--
Stock-based compensation	126,245	40,373
Accrued liabilities and deferred rent	7,707	7,459
Amortization	42,380	--
Total	2,244,572	1,182,593
Valuation allowance for deferred tax asset	(2,177,939)	(1,048,199)
Total deferred tax assets	66,633	134,394

Deferred Tax Liabilities:
Deferred state taxes	--	49,310
Depreciation	66,633	58,746
Amortization	--	26,338
Total deferred tax liability	66,633	134,394
Net deferred tax asset	$ --	$ --