Mustang Bio, Inc. Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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,
	2022		2021
Statutory federal income tax rate	21	%	21	%
State taxes, net of federal tax benefit	16	%	16	%
Non-deductible items	(1)	%	(1)	%
Credits	5	%	5	%
Federal tax rate change	—	%	—	%
State tax rate change	—	%	—	%
Other	1	%	—	%
Change in valuation allowance	(42)	%	(41)	%
Income taxes provision (benefit)	—		—

The components of the net deferred tax asset as of December 31, 2022 and 2021 are the following ($ in thousands):


	For the year ended December 31,
	2022		2021
Deferred tax assets:
Net operating loss carryovers	$	75,011	$	66,879
Stock compensation and other		2,399		2,702
Change in fair value of warrant liabilities		59		59
Amortization of license		13,375		13,977
Lease liability		1,466		755
Accruals and reserves		1,434		1,035
Startup costs		6		6
Tax credits		15,649		9,728
174 Capitalization		19,787		—
Total deferred tax assets		129,186		95,141
Less: valuation allowance		(128,101)		(94,751)
Net deferred tax assets	$	1,085	$	390

Deferred tax liabilities:
Right of use asset		(1,085)		(390)
Total deferred tax assets, net	$	—	$	—