Motus GI Holdings, Inc. Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

		2022		2021
	December 31,
	2022			2021
Deferred tax assets:
Net operating loss carryforwards – Federal and state	$	14,614		$	5,281
Net operating loss carryforwards – Israel		18,813			19,354
Share-based compensation		1,735			1,732
Capitalized research and development		2,246			218
Accrued liabilities and reserves		681			831
Total deferred tax assets		38,089			27,416
Deferred tax liabilities:
Accelerated research and development expense		(548	)		-
Right of use asset		(109	)		(158	)
Other		(34	)		(14	)
Total deferred tax liabilities		(691	)		(172	)
Net deferred tax assets before valuation allowance		37,398			27,244
Valuation allowance		(37,398	)		(27,244	)
Net deferred tax assets after valuation allowance	$	-		$	-

A reconciliation of the federal statutory tax rate and the effective tax rates for the years ended December 31, 2022 and 2021 is as follows:

	For the Year Ended December 31,
	2022			2021
U.S. federal statutory tax rate		21.0	%		21.0	%
State income taxes, net of federal benefit		6.6			2.0
U.S. vs. foreign tax rate differential		0.8			0.9
Non-deductible expenses		(2.7	)		(1.9	)
Foreign exchange adjustments		(10.7	)		2.5
Change in valuation allowance		(15.0	)		(24.5	)
Effective tax rate		-	%		-	%

A reconciliation of the Company’s NOLs for the years ended December 31, 2022 and 2021 is as follows:

Schedule of Reconciliation of NOL