Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.20.1
Income Taxes
 12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 15 - INCOME TAXES

 

  A. The Company files income tax returns in the U.S. federal jurisdiction in state and local jurisdictions and is subject to examination by the various taxing authorities. The Company's income tax returns since inception remain open and subject to examination. Statutory U.S. federal income tax rate is 21%.
     
  B. BiomX Ltd. And RondinX Ltd. file income tax returns in Israel. Their income tax returns since inception remain open and subject to examination. Statutory Israeli income tax rate is 23%.

 

  C. As of December 31, 2019 and 2018, BiomX Ltd. had total net operating losses in Israel of approximately $25,883 thousand and $10,556 thousand, respectively, which may be carried forward and offset against taxable income in the future for an indefinite period.

 

  D. BiomX Ltd is still in its development stage and has not yet generated revenue, therefore, it is more likely than not that sufficient taxable income will not be available for the tax losses to be utilized in the future. Therefore, a valuation allowance was recorded to reduce the deferred tax assets to its recoverable amounts.

 

  E. BiomX Inc is still in its development stage, therefore, it is more likely than not that sufficient taxable income will not be available for the tax losses to be utilized in the future. Therefore, a valuation allowance was recorded to reduce the deferred tax assets to its recoverable amounts.

 

    As of December 31,
    2019   2018
    USD In thousands
         
Net operating loss carry-forward Biomx Inc.     -       -  
Net operating loss carry-forward Biomx Ltd.     5,953       2,430  
Total deferred tax assets     5,953       2,430  
Valuation allowance     (5,953 )     (2,430 )
Net deferred tax assets   $ -     $ -  

 

A reconciliation of the U.S. federal statutory tax rate and the effective tax rate is as follow:

 

    As of December 31,  
    2019     2018  
    USD In thousands  
             
Statutory U.S. federal income tax rate     21 %     21 %
U.S. vs foreign tax rate differential     2       2  
Business Combination expenses     (3.1 )     -  
Valuation allowance     (19.9 )     (23 )
Effective tax rate     0 %     0 %