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, 2018

Schedule of Deferred 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, 2018 and 2017:

	For the Year Ended December 31,
	2018			2017
Current deferred income tax assets:
Inventory – uniform capitalization	$	23,000		$	11,000
Accrued compensation and other		63,000			93,000
Less: valuation allowance		(86,000	)		(104,000	)
	$	—		$	—
Non-current deferred income tax assets and (liabilities):
Net operating loss	$	10,435,000		$	8,995,000
Research and development credit		18,000			18,000
Warranty reserve		81,000			89,000
Warrants issued for services		45,000			45,000
Depreciation and amortization		73,000			47,000
Exercise of options and warrants		(33,000	)		(33,000	)
Stock based compensation		759,000			680,000
Intangibles and other		(422,000	)		(466,000	)
Less: valuation allowance		(10,956,000	)		(9,375,000	)
Net non-current deferred tax assets	$	—		$	—

Schedule of Effective Income Tax Rate Reconciliation

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

	For the Year Ended December 31,
	2018			2017
Statutory federal income tax rate		(21	)%		(34	)%
Stock based compensation		1			1
Tax Reform		—			56
Valuation allowance		20			(23	)
		—	%		—	%