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, 2018

Components of the net loss consist of the following (in thousands):

	Year ended December 31,
	2018			2017
Foreign	$	(21,502	)	$	(20,490	)
Domestic		(4,587	)		(633	)
Total	$	(26,089	)	$	(21,123	)

Schedule of effective income tax rate

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

	Year Ended December 31,
	2018			2017
Statutory federal income tax		(21.0	)%		(34.0	)%
State income tax, net of federal tax effect		0.0	%		0.0	%
Permanent difference		0.1	%		0.1	%
Change in valuation allowance		1.7	%		(65.3	)%
Foreign loss not subject to income tax		17.0	%		32.1	%
Return to provision true-ups		(0.1	)%		(2.6	)%
Tax rate change		0.0	%		22.8	%
Attribute reduction from control Change		3.9	%		43.8	%
Forfeiture of stock options		0.0	%		4.8	%
Other		(1.6	)%		(1.7	)%
Income Tax Provision		0.0	%		0.0	%

Schedule of deferred tax assets

Deferred tax assets and related valuation allowance as of December 31, 2018 and 2017 were as follows (in thousands):

	December 31,
	2018			2017
Deferred tax assets:
Net operating loss carryforward	$	763		$	724
Stock-based compensation		2,659			2,424
Other		226			176
Total deferred assets		3,648			3,324

Valuation allowance		(3,648	)		(3,324	)

Net deferred tax assets	$	—		$	—