Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.20.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
The income tax provision from continuing operations consisted of the following for the years ending December 31, 2020 and 2019:
December 31,
2020 2019
Current:
   Federal $ (2,158,004) $ 209,001 
   State (439,372) 54,572 
Total Current (2,597,376) 263,573 
Deferred:
   Federal (146,655) 24,458 
   State (48,930) (7,715)
Total Deferred (195,585) 16,743 
Net income tax (benefit) expense $ (2,792,961) $ 280,316 
Schedule of Components of Deferred Tax Assets
The net deferred tax liabilities consisted of the following for the years ending December 31, 2020 and 2019:
  December 31,
  2020 2019
Deferred tax assets (liabilities):          
Net operating losses $ 14,935,387  $ 7,596,955 
Accrued compensation 893,098  321,748 
Investment in Aytu —  577,490 
Tax credits 2,748,480  1,070,738 
Stock-based compensation 2,848,797  1,872,442 
Installment sale 461,593  441,305 
Other reserves 542,852  399,885 
Prepaid expenses (246,771) (120,863)
Right-of-use asset (224,271) (167,943)
Lease liability 358,025  296,259 
Basis difference in tangible and intangible assets, net 1,935,389  1,968,008 
Total deferred tax assets, net 24,252,579  14,256,024 
Less valuation allowance (24,342,973) (14,342,005)
Net deferred taxes $ (90,394) $ (85,981)
Reconciliation of Income Tax Expenses Between Federal Statutory Rate and Effective Income Tax Rate The income tax benefit (expense) for the years ended December 31, 2020 and 2019 differed from the amounts computed by applying the U.S. federal income tax rate of 21% as follows:
  December 31,
  2020 2019
Federal statutory rate 21.00  % 21.00  %
Stock compensation (0.47) (0.47)
State taxes 0.60  (0.13)
Research and development credit 2.53  5.13 
Acquired in-process research and development (8.09) — 
Fair value adjustment to contingent consideration —  1.65 
NOL carryback due to CARES Act 3.26  — 
Other (0.16) (1.86)
Valuation allowance (14.46) (27.07)
Effective income tax rate 4.21  % (1.75) %