The Company did not record a current or deferred income tax expense or benefit for the years ended December 31, 2019 and 2018, due to the Company’s net and comprehensive losses and increases in its deferred tax asset valuation allowance. A reconciliation of the statutory federal income tax with the provision for income taxes are as follows:

	Year Ended December 31,
	2019			2018
Federal tax at statutory rate	(21.00%)			(21.00%)
State and local tax at statutory rates, net of federal income tax		(0.82	)		(4.15	)
Research and development credits		(3.39	)		(6.37	)
Other		0.56			4.27
Change in valuation allowance		24.65			27.25
Effective tax rate	0.00%			0.00%

The Company’s income tax provision was computed based on the federal statutory rate and the average state statutory rates, net of the related federal benefit.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income and for tax carryforwards, recorded at the enacted federal statutory income tax rate. Significant components of the Company’s deferred tax assets and liabilities are as follows:

	December 31,
	2019			2018
Deferred tax assets:
Net operating loss carryforwards	$	24,966,019		$	19,946,123
Accrued expenses		413,048			595,209
Stock-based compensation		738,768			603,408
Research and development credits		4,640,960			3,852,714
Operating lease right-of-use assets, net		37,793			—
Other		2,423			13,276
Total deferred tax assets		30,799,011			25,010,730
Deferred tax liabilities:
Furniture and equipment		24,967			8,390
Operating lease liability		36,044			—
Total deferred tax liabilities		61,011			8,390
Net deferred tax assets before valuation allowance		30,738,000			25,002,340
Less valuation allowance		(30,738,000	)		(25,002,340	)
Net deferred tax asset	$	—		$	—

When realization of the deferred tax asset is more likely than not to occur, the benefit related to the deductible temporary differences attributable to operation is recognized as a reduction of income tax expense. Valuation allowances are provided against deferred tax assets when, based on all available evidence, it is considered more likely than not that some portion or all of the recorded deferred tax assets will not be realized in future periods. The Company cannot be certain that future taxable income will be sufficient to realize its deferred tax assets, and accordingly, a full valuation allowance has been provided on its net deferred tax assets. The valuation allowance increased $5,735,658 and $2,832,878 in 2019 and 2018, respectively, as a result of an increase in the net operating loss (“NOL”) and an increase of research and development credits carryforwards. The Company continues to monitor the need for a valuation allowance based on the profitability of its future operations.

At December 31, 2019, the Company has $84,173,000 of federal NOL carryforwards with expirations between 2032 and 2038. The Company has $28,763,332 of federal NOL carryforwards with no expiration as a result of the 2017 Tax Act. Additionally, the Company has $70,789,456 of state and local NOL carryforwards with expiration between 2020 and 2040. Finally, at December 31, 2019, the Company has $4,640,960 of federal research and development credit carryforwards that expire at various dates through 2040.

Under the provisions of the Internal Revenue Code, NOL and tax credit carryforwards are subject to review and possible adjustment by the Internal Revenue Service and state tax authorities until fully utilized. NOL and tax credit carryforwards may be subject to an annual limitation in the event of certain cumulative changes in the ownership interest of significant stockholders by more than 50% over a three-year period, as defined in Sections 382 and 383 of the Internal Revenue Code and similar state provisions. The amount of the annual limitation is determined based on the value of the Company immediately before the ownership change. Subsequent ownership changes may further affect the limitation in future years. The Company has not completed a study to assess whether a change of control has occurred or whether there have been multiple changes of control since the date of the Company’s formation due to the significant complexity and cost associated with such study and that there could be additional changes in control in the future. As a result, the Company is unable to estimate the effect of these limitations, if any, on the Company’s ability to utilize NOL and tax credit carryforwards in the future. A full valuation allowance has been provided against the Company’s NOL and tax credit carryforwards and, if an adjustment is required, this adjustment would be offset by an adjustment to the deferred tax asset established for the NOL and tax credit carryforwards and the valuation allowance.

The Company has not yet conducted a study to document whether its research activities may qualify for the research and development tax credit. Such a study may result in an adjustment to the Company’s research and development credit carryforwards; however, until a study is completed, and any adjustment is known, no amounts are being presented as an uncertain tax position. A full valuation allowance has been provided against the Company’s research and development credit and, if an adjustment is required, this adjustment would be offset by an adjustment to the deferred tax asset established for the research and development credit carryforwards and the valuation allowance.

As of December 31, 2019 and 2018, the Company had no accrued uncertain tax positions or associated interest or penalties and no amounts have been recognized in the Company’s consolidated statements of operations and comprehensive loss.

The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. All years remain open and are subject to examination by federal and state taxing authorities.