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

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

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,
	2020		2019
Statutory federal income tax rate	21	%	21	%
State taxes, net of federal tax benefit	16	%	15	%
Non-deductible items	(1)	%	—	%
Credits	4	%	3	%
Federal tax rate change	—	%	—	%
State tax rate change	1	%	4	%
Other	—	%	(2)	%
Change in valuation allowance	(41)	%	(41)	%
Income taxes provision (benefit)	—		—

The components of the net deferred tax asset as of December 31, 2020 and 2019 are the following ($ in thousands):


	For the year ended December 31,
	2020		2019
Deferred tax assets:
Net operating loss carryovers	$	45,090	$	27,446
Stock compensation and other		2,444		2,037
Change in fair value of warrant liabilities		59		57
Amortization of license		12,804		9,454
Lease liability		825		746
Accruals and reserves		504		519
Startup costs		7		7
Debt issuance costs		—		21
Tax credits		5,743		2,746
Total deferred tax assets		67,476		43,033
Less: valuation allowance		(67,073)		(42,608)
Net deferred tax assets	$	403	$	425

Deferred tax liabilities:
Right of use asset		(403)		(425)
Total deferred tax assets, net	$	—	$	—