Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Reconciliation of Federal Statutory Income Tax Rate and Effective Income Tax Rate

A reconciliation of the federal statutory income tax rate and the effective income tax rate is as follows for the years ended December 31, 2020 and 2019:

	December 31,
	2020			2019
	(%)			(%)
Federal statutory rate		21			21
Change in valuation allowance		(6	)		(4	)
State income taxes, net of federal effect	—				7
Research and development credits		(1	)		3
Removal of net operating losses and other credits		(11	)		(27	)
Impact of state tax rate change		(2	)		4
Stock compensation and other permanent items		(1	)		(4	)
Effective income tax rate	—			—

Summary of Significant Components of Deferred Tax Assets

Significant components of the Company’s deferred tax assets at December 31, 2020 and 2019 are as follows:

	December 31,
	2020			2019
Deferred tax assets:
Acquired technology	$	1,089,000		$	80,000
Stock compensation expense		695,000			846,000
Lease liability		59,000			39,000
Accruals and other		214,000			237,000
Total deferred tax assets		2,057,000			1,202,000
Deferred tax liabilities:
Right of use asset		(59,000	)		(39,000	)
Total deferred tax liabilities		(59,000	)		(39,000	)
Less valuation allowance		(1,998,000	)		(1,163,000	)
Net deferred tax assets (liabilities)	$	—		$	—