Ideal Power Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The following is a summary of the significant components of the Company’s net deferred income tax assets and liabilities as of December 31, 2015 and 2014:

	Year ended December 31,
	2015		2014
Current deferred income tax assets:
Inventory – uniform capitalization	$	75,000	$	13,000
Accrued compensation and other		199,000		151,000
Less: valuation allowance		(274,000)		(164,000)
	$	—	$	—
Non-current deferred income tax assets and (liabilities):
Net operating loss	$	8,029,000	$	4,886,000
Research and development credit		18,000		18,000
Warranty reserve		122,000		49,000
Warrants issued for services		73,000		44,000
Depreciation and amortization		(12,000)		(54,000)
Exercise of options and warrants		(46,000)		—
Stock based compensation		511,000		191,000
Intangibles		(548,000)		(330,000)
Less: valuation allowance		(8,147,000)		(4,804,000)
Net non-current deferred tax assets	$	—	$	—

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The reconciliation between the statutory income tax rate and the effective tax rate is as follows:

	For the year ended December 31,
	2015			2014
Statutory federal income tax rate		(34)	%		(34)	%
Stock based compensation		(1)			—
Other		2			5
Valuation allowance		33			29
		—	%		—	%