| Schedule of Provision for Income Taxes |
Our provision (benefit)
for income taxes for the years ended December 31, 2020 and 2019 was as follows:
| |
|
Year Ended December 31, |
|
| |
|
2020 |
|
|
2019 |
|
| Current: |
|
|
|
|
|
|
|
|
| Federal |
|
$ |
- |
|
|
$ |
- |
|
| State |
|
|
- |
|
|
|
- |
|
| Total deferred tax benefit |
|
|
- |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
| Deferred: |
|
|
|
|
|
|
|
|
| Federal |
|
|
(3,068,218 |
) |
|
|
(1,037,267 |
) |
| State |
|
|
(907,505 |
) |
|
|
(234,033 |
) |
| Total deferred tax benefit |
|
|
(3,975,722 |
) |
|
|
(1,271,300 |
) |
| |
|
|
|
|
|
|
|
|
| Valuation allowance |
|
|
2,974,703 |
|
|
|
668,584 |
|
| Net deferred tax benefit |
|
|
(1,001,019 |
) |
|
|
(602,716 |
) |
| |
|
|
|
|
|
|
|
|
| Total tax provision (benefit) |
|
$ |
(1,001,019 |
) |
|
$ |
(602,716 |
) |
|
| Schedule of Effective Income Tax Rate Reconciliation |
A reconciliation of our
effective income tax rate and statutory income tax rate for the years ended December 31, 2020 and 2019 is as follows:
| |
|
Year Ended December 31, |
|
| |
|
2020 |
|
|
2019 |
|
| Federal statutory income tax rate |
|
|
21.00 |
% |
|
|
21.00 |
% |
| State tax rate, net |
|
|
1.54 |
% |
|
|
3.60 |
% |
| Permanent differences |
|
|
(2.03 |
)% |
|
|
(1.96 |
)% |
| Federal orphan drug tax credit |
|
|
0.94 |
% |
|
|
7.15 |
% |
| Deferred tax asset valuation allowance |
|
|
(14.96 |
)% |
|
|
(14.57 |
)% |
| |
|
|
|
|
|
|
|
|
| Effective income tax rate |
|
|
6.49 |
% |
|
|
15.22 |
% |
|
| Schedule of Deferred Tax Assets and Liabilities |
The significant components
of our deferred tax assets and liabilities for Federal and state income taxes consisted of the following:
| |
|
December 31, |
|
| |
|
2020 |
|
|
2019 |
|
| Deferred tax assets: |
|
|
|
|
|
|
|
|
| Non-current: |
|
|
|
|
|
|
|
|
| Net operating loss carryforward – Federal |
|
$ |
1,410,046 |
|
|
$ |
854,196 |
|
| Net operating loss carryforward – State |
|
|
437,618 |
|
|
|
265,106 |
|
| Stock compensation expense |
|
|
178,053 |
|
|
|
72,504 |
|
| Depreciation |
|
|
12,958 |
|
|
|
8,753 |
|
| Purchased in-process R&D |
|
|
2,405,997 |
|
|
|
- |
|
| Federal orphan drug credits |
|
|
427,343 |
|
|
|
283,189 |
|
| Start-up expenditures and amortization |
|
|
1,171,162 |
|
|
|
800,681 |
|
| Total non-current deferred tax assets |
|
|
6,043,177 |
|
|
|
2,284,429 |
|
| Valuation allowance for deferred tax assets |
|
|
(4,139,829 |
) |
|
|
(1,165,126 |
) |
| Total deferred tax assets |
|
|
1,903,348 |
|
|
|
1,119,303 |
|
| |
|
|
|
|
|
|
|
|
| Deferred Tax Liabilities: |
|
|
|
|
|
|
|
|
| Non-current: |
|
|
|
|
|
|
|
|
| Intangible asset |
|
|
(2,433,959 |
) |
|
|
(2,650,933 |
) |
| Total non-current deferred tax liabilities |
|
|
(2,433,959 |
) |
|
|
(2,650,933 |
) |
| |
|
|
|
|
|
|
|
|
| Total deferred tax asset (liability) |
|
$ |
(530,611 |
) |
|
$ |
(1,531,630 |
) |
|