INCOME TAX - Vallon - 10-K (Tables) - Vallon Pharmaceuticals, Inc.

9 Months Ended

Sep. 30, 2023

Schedule of Reconciliation of Provision for Income Taxes

A reconciliation of income tax expense (benefit) at the US federal statutory income tax rate and the income tax provision in the financial statements is as follows:


	December 31,
	2022		2021
Expected income tax benefit at the federal statutory rate	21.0	%	21.0	%
State and local taxes, net of federal benefit	10.8		10.6
Non-deductible items and other	(0.8)		(0.5)
Change in valuation allowance	(31.0)		(31.1)
Total	—	%	—	%

Schedule of Deferred Tax Assets and Liabilities

The principal components of the Company’s deferred tax assets and liabilities are as follows:


	December 31,
	2022		2021
Deferred tax assets:
Federal and state net operating loss carryforwards	$	8,346	$	6,617
Share based compensation	342		308
Lease liabilities	55		57
Research and development costs	315		—
Accruals and other	136		98
Gross deferred tax assets	9,194		7,080
Less: deferred tax liabilities	—		(70)
Less: valuation allowance	(9,194)		(7,010)
Net deferred tax assets	$	—	$	—