Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.22.1
Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
INCOME TAXES
NOTE 17 - 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, 2021, the Company had total net operating losses in the U.S. of approximately $7,478, 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 tax assessments through 2016 are deemed to be final. The statutory Israeli income tax rate is 23%. 

 

  C. As of December 31, 2021 and 2020, BiomX Israel had total net operating losses in Israel of approximately $78,542 and $47,336, respectively, which may be carried forward and offset against taxable income in the future for an indefinite period.

  D. As of December 31, 2021, the significant components of the Company’s deferred tax assets are net operating loss carryforward in the amount of $20.2 million and research and development expenses in the amount of $4.6 million. 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, 2021. Management reevaluates the positive and negative evidence at each reporting period.
     
  E. 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, 2021 and 2020.

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

 

    As of December 31,  
    2021     2020  
             
Statutory U.S. federal income tax rate     (21 )%     (21 )%
U.S. vs foreign tax rate differential     (2 )     (2 )
Change in deferred tax asset valuation allowance     23       23  
Effective tax rate    
-
 %    
-
 %

 

Loss from operations, before taxes on income, consists of the following:

 

    As of December 31,  
    2021     2020  
             
United States     4,571       3,273  
Israel     31,655       26,813  
      36,226       30,086