Mustang Bio, 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 year ended December 31,						For the period from March 13, 2015 (Inception) to December 31,
	2017			2016			2015
Statutory federal income tax rate		35	%		35	%	35	%
State taxes, net of federal tax benefit		9	%		13	%	5	%
Non-deductible items		(2)	%		(3)	%	(2)	%
Credits		-			-		1	%
Federal tax rate change		(18)	%		-		-
State tax rate change		(1)	%		1	%	-
Other		(1)	%		1	%	-
Change in valuation allowance		(22)	%		(47)	%	(39)	%
Income taxes provision (benefit)		-			-		-

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

	For the year ended December 31,
	2017		2016
Deferred tax assets:
Net operating loss carryovers	$	7,236	$	3,310
Stock compensation and other		697		301
Change in warrant liability		50		76
Amortization of license		6,424		3,848
Accruals and reserves		22		-
Startup costs		8		13
Tax credits		178		89
Total deferred tax assets	$	14,615	$	7,637
Less valuation allowance		(14,615)		(7,637)
Deferred tax assets, net of allowance	$	-	$	-