Quarterly report pursuant to Section 13 or 15(d)

TAXES ON INCOME

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TAXES ON INCOME
9 Months Ended
Sep. 30, 2021
Income Tax Disclosure [Abstract]  
TAXES ON INCOME

NOTE 7 - TAXES ON INCOME

 

A. Deferred income taxes reflect the net tax effects of net operating loss and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets are as follows

 

     
   

As of

September 30,
 
Composition of deferred tax assets:   2021  
Net operating loss carry-forward   $ 3,880  

Deferred tax liability in respect of Share Purchase Agreement (see note 1B)

    (315 )
Valuation allowance     (3,880 )
Net deferred tax liabilities   $

(315

)

 

In assessing the realization of deferred tax assets, management considers whether it is more likely than not that all or some portion of the deferred tax assets will not be realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences are deductible and net operating losses are utilized. Based on consideration of these factors, the Company recorded a full valuation allowance as of September 30,2021 and December 31, 2020.

 

B. For the nine months ended September 30, 2021, the following table reconciles the statutory income tax rate to the effective income tax rate:
   

     
    Nine months ended September 30,  
    2021  
    Unaudited  
Tax rate     23 %
         
Tax expense (benefit) at statutory rate   $ (5,647 )
Tax rate differential     (31 )
Permanent differences with respect to stock-based compensation     130  
Permanent differences with respect to derivative warrants liabilities, bifurcated conversion feature and convertible loans     3,815  
Change in temporary differences     1,733  
Income tax expense (benefit)   $ -  

 

 

TODOS MEDICAL LTD.

 

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(U.S. dollars in thousands)