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

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

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

	For the years ended December 31,
	2017			2016
Statutory federal income tax rate		35	%		35	%
State taxes, net of federal tax benefit		8	%		4	%
Federal tax rate change		(20)	%		0	%
State tax rate change		1	%		(1)	%
Non-deductible items		(3)	%		0	%
Other		(1)	%		0	%
Credits		1	%		0	%
Change in valuation allowance		(21)	%		(38)	%
Income taxes provision (benefit)		0	%		0	%

The components of the net deferred tax asset as of December 31, 2017 and 2016 are the following (in thousands):

	As of December 31,
	2017		2016
Deferred tax assets:
Net operating loss carryovers	$	4,220	$	2,080
Stock compensation and other		70		-
Change in warrant liabilities		226		73
Amortization of license		1,064		1,064
Accruals and reserves		8		78
Tax credits		154		33
Total deferred tax assets		5,742		3,328
Less valuation allowance		(5,742)		(3,318)
Stock compensation and other		-		(10)
Deferred tax assets, net of valuation allowance	$	-	$	-