Inhibikase Therapeutics, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Income Taxes (Table)

Income Taxes (Table)

12 Months Ended

Dec. 31, 2023

Schedule of Reconciliation of Effective Income Tax Rate

The reconciliation of the U.S. federal statutory rate to the Company’s effective tax rate is as follows:


	Year Ended December 31,
	2023			2022
Tax at statutory rate		21.00	%		21.00	%
State income taxes		5.54	%		6.17	%
Tax law change		1.37	%		—
Stock-based compensation		(0.11	)%		—
R&D Tax Credits		5.75	%		—
Other		(0.05	)%		0.03	%
Change in valuation allowance		(33.50	)%		(27.20	)%
Effective tax rate		0.00	%		0.00	%

On October 4, 2023, Massachusetts enacted tax law changes which included the adoption of a single sales apportionment factor effective on January 1, 2025. As required under ASC 740, the Company has accounted for the deferred tax impacts of this tax law change in the period the tax law was enacted, which has the impact of increasing its state deferred tax assets. The impact of the tax law change is offset by a change in valuation allowance.

Components of Deferred Tax Assets and Liabilities

The significant components of the Company’s deferred tax assets consist of the following at December 31, 2023 and 2022:


	December 31,
	2023			2022
Deferred tax assets:
Net operating loss carryforwards	$	9,179,115		$	6,890,275
Capitalized research and development		5,669,202			2,854,530
Stock-based compensation		2,629,771			2,440,885
R&D tax credit carryforwards		1,093,839			—
Accrued expenses		187,393			199,961
Other		1,827			—
Total deferred tax assets		18,761,147			12,385,651
Deferred tax asset valuation allowance		(18,759,181	)		(12,385,651	)
Total deferred tax asset	$	1,966		$	—

Deferred tax liabilities:
Fixed Assets	$	(1,966	)	$	—
Total deferred tax assets	$	(1,966	)	$	—

Net deferred tax asset (liability)	$	—		$	—