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

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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


	Year Ended December 31,
	2023			2022
Expected income tax benefit at the federal statutory rate		21.0	%		21.0	%
State and local taxes, net of federal benefit		7.6			7.9
Research and development credit, net		6.4			4.5
Non-deductible items and other		(0.5	)		(0.6	)
Change in state and local tax rate		(0.7	)		(7.4	)
Change in valuation allowance		(33.8	)		(25.4	)
Total		0.0	%		0.0	%

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


	December 31,
	2023			2022
Deferred tax assets:
Federal, state and local net operating loss carryforwards	$	34,534		$	28,880
Capitalized research and development costs		19,830			9,640
Research and development tax credits		10,192			5,859
Stock-based compensation deductions		6,066			3,840
License fee deductions		240			262
Operating lease liabilities		1,482			1,535
Accrued expenses		1,665			1,165
Gross deferred tax assets		74,009			51,181
Less: valuation allowance		(72,560	)		(49,689	)
Total deferred tax assets		1,449			1,492
Deferred tax liabilities:
Operating lease right-of-use assets		(1,449	)		(1,492	)
Net deferred tax assets	$	—		$	—