Matinas BioPharma Holdings, Inc. Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

A reconciliation of the statutory U.S. federal rate to the Company's effective tax rate is as follows:

	Years ended
	December 31,
	2016			2015

Percent of pre-tax income:
U.S. federal statutory income tax rate		34.0	%		34.0	%
Permanent items		(3.9)	%		(5.3)	%
Research and development credit		3.4	%		3.0	%
Change in valuation allowance		(33.5)	%		(31.7)	%
Effective income tax rate		0.0	%		0.0	%

Significant components of the Company's deferred tax assets (liabilities) for 2016 and 2015 consist of the following:

	($ in thousands)
	As of December 31,
	2016		2015
Deferred tax assets (liabilities)
Share-based compensation	$	549	$	519
Depreciation and amortization		12		37
Warrants		43		44
Accrued liability		253		118
Net operating loss carryforwards		9,068		7,093
Federal research and development credit carryforwards		804		525
Other		2		-
In process research and development		(1,205)		(1,205)
Deferred income tax assets		9,526		7,131
Valuation allowance		(10,731)		(8,336)
Net deferred tax liabilities	$	(1,205)	$	(1,205)