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

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

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

	For the Year Ended December 31,
	2021			2020
Expected income tax benefit at the federal statutory rate		21.0	%		21.0	%
State and local taxes, net of federal benefit		12.5			12.5
Research and development credit, net		4.4			2.6
Non-deductible items and other		(0.6	)		(0.8	)
Change in valuation allowance		(37.3	)		(35.3	)
Total		0.0	%		0.0	%

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

	December 31,
	2021			2020
Deferred tax assets:
Federal, state and local net operating loss carryforwards	$	28,857		$	15,241
License fee deductions		318			340
Research and development tax credits		3,359			1,317
Stock-based compensation deductions		2,616			1,243
Accrued expenses		1,074			837
Gross deferred tax assets		36,224			18,978
Less: valuation allowance		(36,224	)		(18,978	)
Total deferred tax assets		—			—
Deferred tax liabilities:		—			—
	$	—		$	—
Net deferred tax assets	$	—		$	—