| Schedule of Deferred Tax Assets and Liabilities |
As of December 31, 2017, and 2016, the Company’s
deferred tax assets (liabilities) consisted of the effects of
temporary differences attributable to the following:
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| |
|
December 31, |
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| |
|
2017 |
|
|
2016 |
|
|
Deferred tax assets (liabilities):
|
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|
|
|
|
|
|
|
|
Tax credit
|
|
$ |
4,335,394 |
|
|
$ |
2,802,573 |
|
|
Net operating loss carryovers
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|
|
23,630,008 |
|
|
|
16,174,712 |
|
|
Property and equipment
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|
|
99,756 |
|
|
|
(58,747 |
) |
|
Research and development costs
|
|
|
15,372,328 |
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|
|
18,628,913 |
|
|
Start-up and
organizational costs
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|
774 |
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|
|
1,222 |
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|
Stock-based compensation
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|
2,473,591 |
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|
|
1,829,843 |
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Other accruals
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|
260,113 |
|
|
|
341,090 |
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|
|
|
|
|
|
|
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Total gross deferred tax assets
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|
|
46,171,964 |
|
|
|
39,719,606 |
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|
Less: valuation allowance
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|
(46,171,964 |
) |
|
|
(39,719,606 |
) |
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|
|
|
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|
Deferred tax assets, net
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|
$ |
— |
|
|
$ |
— |
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| Summary of Valuation Allowance |
The change in the Company’s valuation allowance is as
follows:
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| |
|
2017 |
|
|
2016 |
|
|
January 1,
|
|
$ |
39,719,606 |
|
|
$ |
22,085,888 |
|
|
Increase in valuation allowance
|
|
|
6,452,358 |
|
|
|
17,633,718 |
|
|
|
|
|
|
|
|
|
|
|
December 31,
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|
$ |
46,171,964 |
|
|
$ |
39,719,606 |
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|
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| Schedule of Effective Income Tax Rate Reconciliation |
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For the Year Ended December 31, |
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| |
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2017
|
|
|
2016
|
|
|
Tax benefit at federal statutory rate
|
|
|
(34.0 |
)% |
|
|
(34.0 |
)% |
|
State income taxes
|
|
|
(10.2 |
) |
|
|
(5.7 |
) |
|
Permanent differences:
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|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
(2.5 |
) |
|
|
0.8 |
|
|
Meals and entertainment
|
|
|
0.1 |
|
|
|
0.1 |
|
|
True-up of federal
deferred taxes
|
|
|
(2.8 |
) |
|
|
1.7 |
|
|
True-up of state deferred
taxes
|
|
|
— |
|
|
|
1.2 |
|
|
Change in effective tax rate
|
|
|
39.4 |
|
|
|
— |
|
|
Research and development tax credit, federal
|
|
|
(1.4 |
) |
|
|
(1.5 |
) |
|
Research and development tax credit, state
|
|
|
(1.6 |
) |
|
|
(1.1 |
) |
|
Increase in valuation allowance, federal
|
|
|
1.3 |
|
|
|
32.9 |
|
|
Increase in valuation allowance, state
|
|
|
11.7 |
|
|
|
5.6 |
|
|
|
|
|
|
|
|
|
|
|
Effective income tax rate
|
|
|
0.0 |
% |
|
|
0.0 |
% |
|
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|