Quarterly report pursuant to Section 13 or 15(d)

TAXES ON INCOME

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TAXES ON INCOME
3 Months Ended
Mar. 31, 2022
Income Tax Disclosure [Abstract]  
TAXES ON INCOME

NOTE 6 – 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

March 31,

 
    2022  
  Unaudited  
Composition of deferred tax assets:      
Net operating loss carry-forward   $ 6,747  
Research and development credits     -  
Allowance for Bad Debt        
Others     -  
Net deferred tax asset before deferred tax liabilities and valuation allowance     6,747  
         
Composition of deferred tax liabilities:        
Intangible assets upon acquisition of subsidiary     284  
Depreciation costs     197  
Net deferred tax asset before valuation allowance     6,266  
         
Valuation allowance     (6,550 )
Net deferred tax liability     (284 )

 

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 March 31, 2022.

 

 

TODOS MEDICAL LTD.

 

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(U.S. dollars in thousands)

 

B. For the period of three months ended March 31, 2022, the following table reconciles the statutory income tax rate to the effective income tax rate:

 

       
    Three months ended
March 31,
 
    2022  
    Unaudited  
       
Tax rate     23 %
         
Tax expense (benefit) at statutory rate   $ (1,579 )
Tax rate differential     25  
Permanent differences with respect to stock-based compensation     359  
Permanent differences with respect to derivative warrants liabilities, bifurcated conversion feature and convertible loans     613  
Others        
Loss carryforwards and others     582  
Income tax expense (benefit)   $ -  

 

 

TODOS MEDICAL LTD.

 

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

(U.S. dollars in thousands)