Ondas Holdings Inc. General form of registration statement for all companies including face-amount certificate companies

General form of registration statement for all companies including face-amount certificate companies

INCOME TAXES (Tables)

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows:

	December 31,
	2018			2017
Deferred Tax Assets:
Tax benefit of net operating loss carry-forward	$	6,465,826		$	4,006,517
Depreciation and amortization		(5,102	)		(8,332	)
Accrued liabilities		261,876			220,681
Stock based compensation		—			507,545
Interest Expense		740,285			—
R&D Credit		393,165			—
Total deferred tax assets		7,856,050			4,726,411
Valuation allowance for deferred tax assets		(7,856,050	)		(4,726,411	)
Deferred tax assets, net of valuation allowance	$	—		$	—

Summary of Valuation Allowance

The change in the Company’s valuation allowance is as follows:

	Years Ended December 31,
	2018		2017

Beginning of the year	$	4,726,411	$	3,848,878
Change in valuation account		3,129,639		877,533
End of the year	$	7,856,050	$	4,726,411

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the provision for income taxes with the amounts computed by applying the Federal income tax rate to income from operations before the provision for income taxes is as follows:

	Years Ended December 31,
	2018			2017

U.S. federal statutory rate		(21.0	)%		(35.0	)%
State taxes, net of federal benefit		(6.9	)%		(5.8	)%
Share-based compensation		—	%		17.5	%
Effect of U.S. tax law change		—	%		(13.2	)%
Change in valuation allowance		25.8	%		30.2	%

Nondeductible expenses		2.0	%		6.3	%
R&D credit		(3.2	)%		—	%
Stock Options		3.3	%		—	%
Effective income tax rate		—	%		—	%