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, 2017

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, 2017 and 2016:

	For the Year Ended December 31,
	2017		2016
Current deferred income tax assets:
Inventory – uniform capitalization	$	11,000	$	104,000
Accrued compensation and other		93,000		136,000
Less: valuation allowance		(104,000)		(240,000)
	$	—	$	—
Non-current deferred income tax assets and (liabilities):
Net operating loss	$	8,995,000	$	11,319,000
Research and development credit		18,000		18,000
Warranty reserve		89,000		114,000
Warrants issued for services		45,000		73,000
Depreciation and amortization		47,000		17,000
Exercise of options and warrants		(33,000)		(50,000)
Stock based compensation		680,000		830,000
Intangibles and other		(466,000)		(666,000)
Less: valuation allowance		(9,375,000)		(11,655,000)
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,
	2017			2016
Statutory federal income tax rate		(34)	%		(34)	%
Stock based compensation		1			2
Tax Reform		56			—
Valuation allowance		(23)			32
		—	%		—	%