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, 2016

Summary of Significant Components of Net Deferred Income Tax Assets and Liabilities

The following is a summary of the significant components of the Company’s net deferred income tax assets and liabilities as of December 31, 2016 and 2015:



	For the Year Ended December 31,
	2016			2015
Current deferred income tax assets:
Inventory – uniform capitalization	$	104,000		$	75,000
Accrued compensation and other	136,000			199,000
Less: valuation allowance	(240,000		)	(274,000		)
	$	—		$	—
Non-current deferred income tax assets and (liabilities):
Net operating loss	$	11,319,000		$	8,029,000
Research and development credit	18,000			18,000
Warranty reserve	114,000			122,000
Warrants issued for services	73,000			73,000
Depreciation and amortization	17,000			(12,000		)
Exercise of options and warrants	(50,000		)	(46,000		)
Stock based compensation	830,000			511,000
Intangibles	(666,000		)	(548,000		)
Less: valuation allowance	(11,655,000		)	(8,147,000		)
Net non-current deferred tax assets	$	—		$	—

Reconciliation Between the Statutory Income Tax Rate and the Effective Tax Rate

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



	For the Year Ended December 31,
	2016		2015
Statutory federal income tax rate	(34	)%	(34	)%
Stock based compensation	2		(1	)
Other	—		2
Valuation allowance	32		33
	—	%	—	%