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, 2013

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, 2013 and 2012:

	Year ended December 31,
	2013		2012
Current deferred income tax assets:
Inventory – uniform capitalization	$	59,000	$	18,000
Less valuation allowance		(59,000)		(18,000)
	$	—	$	—
Non-current deferred income tax assets and (liabilities):
Net operating loss	$	3,048,000	$	1,806,000
Research and development credit		18,000		18,000
Warranty reserve		38,000		35,000
Depreciation and amortization		—		7,000
Other		(188,000)		(139,000)
Less valuation allowance		(2,916,000)		(1,727,000)
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,
	2013			2012
Statutory federal income tax rate		(34)	%		(34)	%
Debt discount		20			12
Other		2			—
Valuation allowance		12			22
		—	%		—	%