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

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

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,
	2021		2020
Statutory federal income tax rate	21	%	21	%
State taxes, net of federal tax benefit	16	%	16	%
Non-deductible items	(1)	%	(1)	%
Credits	5	%	4	%
Federal tax rate change	—	%	—	%
State tax rate change	—	%	1	%
Other	—	%	—	%
Change in valuation allowance	(41)	%	(41)	%
Income taxes provision (benefit)	—		—

The components of the net deferred tax asset as of December 31, 2021 and 2020 are the following ($ in thousands):


	For the year ended December 31,
	2021		2020
Deferred tax assets:
Net operating loss carryovers	$	66,879	$	45,090
Stock compensation and other		2,702		2,444
Change in fair value of warrant liabilities		59		59
Amortization of license		13,977		12,804
Lease liability		755		825
Accruals and reserves		1,035		504
Startup costs		6		7
Tax credits		9,728		5,743
Total deferred tax assets		95,141		67,476
Less: valuation allowance		(94,751)		(67,073)
Net deferred tax assets	$	390	$	403

Deferred tax liabilities:
Right of use asset		(390)		(403)
Total deferred tax assets, net	$	—	$	—