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SEC Filings

10-K
SERES THERAPEUTICS, INC. filed this Form 10-K on 03/06/2019
Entire Document
 

 

SERES THERAPEUTICS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except share and per share data)

 

 

Indemnification Agreements

In the ordinary course of business, the Company may provide indemnification of varying scope and terms to vendors, lessors, business partners and other parties with respect to certain matters including, but not limited to, losses arising out of breach of such agreements or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with members of its board of directors and its officers that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is, in many cases, unlimited. To date, the Company has not incurred any material costs as a result of such indemnifications. The Company does not believe that the outcome of any claims under indemnification arrangements will have a material effect on its financial position, results of operations or cash flows, and it has not accrued any liabilities related to such obligations in its consolidated financial statements as of December 31, 2018 or 2017.

 

 

12.

Income Taxes

During the years ended December 31, 2018, 2017 and 2016, the Company recorded no income tax benefits for the net operating losses incurred in each year or interim period, due to its uncertainty of realizing a benefit from those items.

A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate is as follows:

 

 

 

Year Ended December 31,

 

 

 

2018

 

 

2017

 

 

2016

 

Federal statutory income tax rate

 

 

(21.0

)%

 

 

(34.0

)%

 

 

(34.0

)%

Research and development tax credits

 

 

(7.2

)

 

 

(7.7

)

 

 

(8.8

)

State taxes, net of federal benefit

 

 

(7.2

)

 

 

(4.8

)

 

 

(5.8

)

Stock-based compensation

 

 

2.0

 

 

 

1.2

 

 

 

(6.3

)

Revaluation of preferred stock warrant liability

 

 

 

 

 

33.1

 

 

 

 

Other

 

 

0.8

 

 

 

(0.3

)

 

 

0.1

 

Change in deferred tax asset valuation allowance

 

 

32.6

 

 

 

12.5

 

 

 

54.8

 

Effective income tax rate

 

 

%

 

 

%

 

 

%

 

F-27



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