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, 2019

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, 2019 and 2018:


	For the Year Ended December 31,
	2019		2018
Current deferred income tax assets:
Inventory – uniform capitalization	$	—	$	23,000
Accrued compensation and other		9,000		63,000
Less: valuation allowance		(9,000)		(86,000)
	$	—	$	—
Non-current deferred income tax assets and (liabilities):
Net operating loss	$	11,382,000	$	10,435,000
Research and development credit		18,000		18,000
Warranty reserve		—		81,000
Warrants issued for services		45,000		45,000
Depreciation and amortization		76,000		73,000
Exercise of options and warrants		(33,000)		(33,000)
Stock based compensation		775,000		759,000
Intangibles and other		(425,000)		(422,000)
Less: valuation allowance		(11,838,000)		(10,956,000)
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,
	2019		2018
Statutory federal income tax rate	(21)	%	(21)	%
Stock based compensation	1		1
Tax Reform	—		—
Valuation allowance	20		20
	—	%	—	%