Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Taxes

Schedule of Components of Income Tax Expense (Benefit)

The Company’s tax expense differs from the “expected” tax expense for the years ended December 31, 2020 and 2019. For 2020, the “expected” tax expense is computed by applying the Federal corporate statutory tax rate of 21% and a net, after Federal benefit state tax rate of 6.45% (state blended rate was 27.45%) to loss before taxes. For 2019, the “expected” tax expense is computed by applying the Federal corporate statutory tax rate of 21% and a net, after Federal benefit state tax rate of 4.74% (state blended rate was 24.74.%) to loss before taxes. These results are as follows (in thousands):

	2020		2019
Computed “expected” tax-benefit – Federal	$	(2,124)	$	(3,230)
Computed “expected” tax-benefit – State		(616)		(729)
Non-deductible stock-based compensation		32		864
State tax rate adjustment		(1,221)		—
Change in valuation allowance		3,929		3,095
	$	—	$	—

Schedule of Deferred Tax Assets and Liabilities

The effects of temporary differences that gave rise to significant portions of deferred tax assets at December 31, 2020 and 2019 are as follows (in thousands):

	2020		2019
Deferred tax assets:
Stock issued for services	$	1,428	$	1,223
Accrued compensation		42		20
Stock issued for acquisition of program		1,436		1,301
Stock issued for license agreement		1,574		1,574
Stock issued for milestone payment		262		255
Amortizable license fee		5		5
Net operating loss carry-forward		12,540		8,494
Total gross deferred tax assets		17,287		12,872
Less: valuation allowance		(17,287)		(12,872)
Total net deferred tax assets	$	—	$	—