Cabaletta Bio, Inc. Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

The reconciliation of federal statutory income tax rate to the Company’s effective income tax rate is as follows:

	For the Year Ended December 31,
	2019			2018
Expected income tax benefit at the federal statutory rate		21.0	%		21.0	%
State and local taxes, net of federal benefit		13.1			7.9
Research and development credit, net		2.3			0.6
Non-deductible items		(3.3	)		(16.8	)
Change in valuation allowance		(33.1	)		(12.7	)
Total		0.0	%		0.0	%

The principal components of the Company’s deferred tax assets consisted of the following:

	December 31,
	2019			2018
Deferred tax assets:
Federal, state and local net operating loss carryforwards	$	5,688		$	1,163
License fee deductions		362			328
Research and development tax credits		452			69
Stock-based compensation deductions		264			17
Accrued expenses		457			35
Gross deferred tax assets		7,223			1,612
Less: valuation allowance		(7,223	)		(1,612	)
Total deferred tax assets		—			—
Deferred tax liabilities:		—			—
	$	—		$	—
Net deferred tax assets	$	—		$	—