Abeona Therapeutics 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, 2012

Income tax expense differs from statutory amounts

Income tax expense differs from the statutory amounts as follows:

	2012			2011

Income taxes at U.S. statutory rate	$	(4,260,000	)	$	(861,000	)
State taxes		-			17,000
Current year reserve		3,578,000			857,000
Expenses not deductible		682,000			4,000

Total tax expense	$	-		$	17,000

Temporary differences that give rise to deferred tax assets

Deferred taxes are provided for the temporary differences between the financial reporting bases and the tax bases of our assets and liabilities. The temporary differences that give rise to deferred tax assets were as follows:

	December 31,
	2012			2011
Deferred tax assets
Net operating loss carryforwards	$	64,147,000		$	63,830,000
General business credit carryforwards		2,450,000			2,439,000
State credits		3,072,000			3,097,000
Property and equipment		57,000			46,000
Stock options		1,531,000			1,480,000
Derivatives		4,007,000			2,018,000
Deferred revenue		899,000			1,221,000
Intangible assets		517,000			415,000
Accrued interest		253,000			253,000
Other		230,000			231,000
Gross deferred tax assets		77,163,000			75,030,000
Valuation allowance		(77,163,000	)		(75,030,000	)
Net deferred taxes	$	-		$	-

Net operating loss carryforwards and general business credits expiration dates

At December 31, 2012, we had approximately $188,666,000 of net operating loss carryforwards and approximately $2,450,000 of general business credit carryforwards. These carryforwards expire as follows:

	Net operating		General business
	loss carryforwards		credit carryforwards
2012	$	-	$	-
2013		-		-
2014		-		-
2015		-		-
Thereafter		188,666,000		2,450,000
	$	188,666,000	$	2,450,000