Tonix Pharmaceuticals Holding Corp. Annual report pursuant to section 13 and 15(d)

Annual report pursuant to section 13 and 15(d)

INCOME TAXES (Tables)

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Deferred tax assets and liabilities and related valuation allowance as of December 31, 2012 and 2011 are as follows:

	December 31,
	2012		2011
Deferred tax assets:
Organization costs	$	—	$	733
Research and development credit carryforward⁽¹⁾		6,188		6,188
Net operating loss carryforwards		5,207,759		2,329,829
Other		147,003		132,482
Total deferred tax assets		5,360,950		2,469,232
Valuation allowance		(5,360,950)		(2,469,232)
Net deferred tax assets	$	0	$	0

(1)

The Company has incurred research and development (“R&D”) expenses, a portion of which may qualify for tax credits. The Company has not conducted an R&D credit study to quantify the amount of credits and has not claimed an R&D credit on its federal tax returns filed except for $6,188 in 2007. The Company may conduct the study in future years and may establish the R&D credit carryforward for prior years. In such event, the net operating loss carryforward will be correspondingly reduced by the amount of the credit.

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

A reconciliation of the effect of applying the federal statutory rate and the effective income tax rate used to calculate the Company’s income tax provision is as follows:

	Year Ended December 31,
	2012			2011
Statutory federal income tax		(34.0)	%		(34.0)	%
State income tax, net of federal tax effect		(10.5)	%		(5.9)	%
Permanent difference		13.9	%		5.0	%
Increase in valuation allowance		30.6	%		34.9	%
Income tax provision		0	%		0	%