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

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

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,
	2016			2015

Statutory federal income tax rate		35	%		35	%
State taxes, net of federal tax benefit		13	%		5	%
Non-deductible items		(3)	%		(2)	%
Credits		-			1	%
Rate change		1	%		-
Other		1	%		-
Change in valuation allowance		(47)	%		(39)	%
Income taxes provision (benefit)		-			-

The components of the net deferred tax asset as of December 31, 2016 and 2015 are the following ($ in thousands):

	As of December 31,
	2016		2015

Deferred tax assets:
Net operating loss carryovers	$	3,310	$	893
Stock compensation and other		301		-
Change in warrant liability		76		-
Amortization of license		3,848		815
Start up costs		13		-
Tax credits		89		38
Total deferred tax assets		7,637		1,746
Less valuation allowance		(7,637)		(1,746)
Deferred tax assets, net of valuation allowance	$	-	$	-