Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

v3.26.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Taxes [Abstract]  
Schedule of Reconciliation of the Provision for Income Taxes

A reconciliation of the provision for income taxes to the amount computed by applying the statutory income tax rate of 21% to the net loss is summarized for the year ended December 31, 2024 as follows:

 

    Year Ended  
    December 31,
2024		  
Income taxes (benefit) at statutory rates     21.00 %
State income tax (benefit), net of federal benefit     5.84 %
Change in valuation allowance     (23.12 )%
Fair value adjustment on warrants     (3.32 )%
Officers’ compensation     (1.05 )%
Other     0.65 %
Effective income tax rate     0.00 %

The table below provides the updated requirements of ASU 2023-09 (in thousands) for the year ended December 31, 2025:

 

    Year Ended December 31, 2025  
    Amount     Percentage  
Provision for income taxes at U.S. federal statutory rate   $ (5,576 )     21.00 %
State and local income taxes, net of federal benefit (1)     (178 )     0.67 %
Tax Credits                
Research and development (“R&D”) credits     (458 )     1.72 %
Changes in valuation allowance     5,599       (21.09 )%
Non-taxable or non-deductible items:                
Officers’ compensation     279       (1.05 )%
Fair value adjustment on warrants     (424 )     1.60 %
Other     122       (0.45 )%
Changes in unrecognized tax benefits     636       (2.40 )%
Other adjustments:                
Other    
-
       0.00 %
    $
-
       0.00 %
Schedule of Deferred Tax Assets and Liabilities Significant components of the Company’s deferred tax assets at December 31, 2024 and 2025 are shown below (in thousands):
    December 31,     December 31,  
    2024     2025  
Deferred tax assets:            
Stock-based compensation   $ 730     $ 1,041  
Net operating losses carryforwards     11,022       16,651  
Depreciation and amortization     960       915  
Capitalized research     6,572       7,023  
Accrued expenses     553       30  
Other    
-
       37  
Total gross deferred tax assets     19,837       25,697  
Less: valuation allowance     (19,668 )     (25,669 )
Net deferred tax assets, net of valuation allowance   $ 169     $ 28  
                 
Deferred tax liabilities:                
Other   $ (169 )   $ (28 )
Total deferred tax liabilities     (169 )     (28 )
Net deferred tax assets / liabilities   $
-
     $
-
  
Schedule of Unrecognized Tax Benefits

The following table summarizes the changes to the Company’s gross unrecognized tax benefits for the years ended December 31, 2024 and 2025 (in thousands):

 

    Year Ended
December 31,		     Year Ended
December 31,		  
    2024     2025  
Beginning balance   $ 1,027     $ 1,985  
Additions related to current year positions     958       649  
Additions related to prior year positions    
-
       34  
Ending balance   $ 1,985     $ 2,668