Inhibikase Therapeutics, Inc. Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Table)

Income Taxes (Table)

12 Months Ended

Dec. 31, 2024

Schedule of Reconciliation of Effective Income Tax Rate

The reconciliation of the U.S. federal statutory rate to the Company’s effective tax rate is as follows:


	Year ended December 31,
	2024			2023
Tax at statutory rate		21.00	%		21.00	%
State income taxes		2.98	%		5.54	%
Tax law change		(1.40	)%		1.37	%
Stock-based compensation		(2.42	)%		(0.11	)%
R&D Tax Credits		2.59	%		5.75	%
Other		0.02	%		(0.05	)%
Limitation on tax attributes		(6.56	)%	0.00%
Change in valuation Allowance		(16.21	)%		(33.50	)%
Effective tax rate		0.00	%		0.00	%

On December 4, 2023, Massachusetts enacted supplemental tax law changes modifying the adoption of a single sales apportionment factor effective on January 1, 2025 to use the property and payroll factors if no sales factor exits. As required under ASC 740, the Company has accounted for the deferred tax impacts of this tax law change in the period the tax law was enacted, which has the impact of decreasing its state deferred tax assets. The impact of the tax law change is offset by a change in valuation allowance.

Components of Deferred Tax Assets and Liabilities

The significant components of the Company’s deferred tax assets (liabilities) consist of the following at December 31, 2024 and 2023:


	2024			2023
Deferred tax assets:
Net operating loss carryforwards	$	12,320,874		$	9,179,115
Capitalized research and development		6,895,747			5,669,202
Stock-based compensation		3,780,237			2,629,771
R&D tax credits carryforwards		—			1,093,839
Accrued expenses		218,802			187,393
Fixed assets		447			(1,966	)
Other		1,728			1,827
Total deferred tax assets		23,217,835			18,759,181
Deferred tax asset valuation allowance		(23,217,835	)		(18,759,181	)
Net deferred tax asset	$	—		$	—