| INCOME TAXES |
| |
A. |
The Company files income tax returns in the
U.S. federal jurisdiction and 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. The statutory U.S. federal
income tax rate is 21%. As of December 31, 2020, the Company had total net operating losses in the U.S of approximately $3,425,
which may be carried forward and offset against taxable
income in the future. |
| |
|
|
| |
B. |
BiomX Ltd. And RondinX Ltd. file income tax
returns in Israel. Their income tax returns since inception remain open and subject to examination. The statutory Israeli
income tax rate is 23%. |
| |
C. |
As of December 31, 2020 and 2019, BiomX Israel
had total net operating losses in Israel of approximately $62,927 and $25,883, respectively, which may be carried forward
and offset against taxable income in the future for an indefinite period. |
| |
D. |
The Company has evaluated the positive and negative
evidence bearing upon its ability to realize the deferred tax assets. Management has considered the Company's history
of cumulative net losses incurred since inception and its lack of commercialization of any products or generation of any revenue
from product sales since inception and has concluded that it is more likely than not that the Company will not realize the
benefits of the deferred tax assets. Accordingly, a full valuation allowance has been established against the deferred tax
assets as of December 31, 2020 and 2019. Management reevaluates the positive and negative evidence at each reporting period. |
| |
|
|
| |
F. |
The Company's policy is to record estimated
interest and penalties related to uncertain tax positions in income tax expense. The Company has no amounts recorded for any
unrecognized tax positions, accrued interest or penalties as of December 31, 2020 and 2019. |
| |
|
As of December 31, |
|
| |
|
2020 |
|
|
2019 |
|
| |
|
|
|
|
|
|
| Net operating loss carryforward BiomX Inc. |
|
|
719 |
|
|
|
- |
|
| Net operating loss carryforward BiomX Ltd. |
|
|
14,473 |
|
|
|
5,953 |
|
| Total deferred tax assets |
|
|
15,192 |
|
|
|
5,953 |
|
| Valuation allowance |
|
|
(15,192 |
) |
|
|
(5,953 |
) |
| 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, |
|
| |
|
2020 |
|
|
2019 |
|
| |
|
|
|
|
|
|
| Statutory U.S. federal income tax rate |
|
|
(21 |
)% |
|
|
(21 |
)% |
| U.S. vs foreign tax rate differential |
|
|
(2 |
) |
|
|
(2 |
) |
| Business Combination expenses |
|
|
- |
|
|
|
3.1 |
|
| Change in deferred tax asset valuation allowance |
|
|
23 |
|
|
|
19.9 |
|
| Effective tax rate |
|
|
- |
% |
|
|
- |
% |
Loss from operations, before taxes on income, consists
of the following:
| |
|
As of December 31, |
|
| |
|
2020 |
|
|
2019 |
|
| |
|
|
|
|
|
|
| United States |
|
|
3,273 |
|
|
|
1,589 |
|
| Israel |
|
|
26,813 |
|
|
|
18,974 |
|
| |
|
|
30,086 |
|
|
|
20,563 |
|
|