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 Tax Disclosure [Abstract]  
SCHEDULE OF PROVISION FOR INCOME TAXES

Income tax expense for each of the following years consists of the following (in thousands):

 

    2025     2024  
    For the year ended December 31,  
    2025     2024  
             
Current:                
U.S. federal   $ 100     $ —  
State and local     —       —  
Total current income tax expense     100       —  
                 
Deferred:                
U.S. federal     —       —  
State and local     —       —  
Total deferred income tax expense     —       —  
                 
Total income tax expense   $ 100     $ —  
SCHEDULE OF INCOME TAX RATE AND TAX PROVISION

A reconciliation of the income tax expense the amount computed by applying the 21% statutory U.S federal income tax rate to income before income taxes after the adoption of ASU 2023-09 as follows:

 

In thousands except for percentages   Amount     Percent  
    For the year ended December 31, 2025  
In thousands except for percentages   Amount     Percent  
             
US federal statutory tax rate   $ 14,970       21.0 %
State and local income taxes, net of federal income tax effect (a)     —       0.0 %
Tax credits                
Research and development (“R&D”) credit     (2,882 )     (4.0 )%
R&D credit expired (under statute or 382 study)     3,327       4.6 %
Changes in valuation allowance     (36,054 )     (50.6 )%
Nontaxable or nondeductible items                
Change in FV of warrant liabilities     (1,289 )     (1.8 )%
Other     141       0.2 %
Other adjustments                
Federal NOL’s expired (under statute or 382 limitation)     20,284       28.5 %
Share-based awards     984       1.4 %
Other     619       0.8 %
Total income tax expense   $ 100       0.1 %

 

(a) State taxes in New York made up the majority (greater than 50 percent) of the tax effect in this category.
 

    For the year ended December 31, 2024  
       
Income taxes at U.S. statutory rate   $ (13,384 )
State tax, net of federal benefit     (679 )
Research and development credit     (1,535 )
Deferred true ups     8,032  
Valuation allowance     5,418  
Change in fair value of warrant liabilities     159  
Expired tax losses and credits     2,116  
Permanent differences     (127 )
Total tax expense   $ —  

 
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES

Deferred taxes are provided for the temporary differences between the financial reporting bases and the tax bases of the Company’s assets and liabilities. The temporary differences that give rise to deferred tax assets and liabilities were as follows (in thousands):

 

    2025     2024  
    For the year ended December 31,  
    2025     2024  
             
Deferred tax assets:                
Net operating loss carryforwards   $ 65,956     $ 88,059  
General business credit carryforwards     5,228       6,000  
State credits     77       2,780  
Property and equipment     —       1,002  
Stock based compensation     2,542       2,463  
Intangible assets     652       661  
Accrual to cash conversion     892       —  
Accruals     —       107  
Capitalized research and development     770       13,264  
Operating lease liabilities     318       —  
Other     91       70  
Deferred tax assets before valuation allowance     76,526       114,406  
Valuation allowance     (74,922 )     (114,406 )
Total deferred tax assets     1,604       —  
Deferred tax liabilities:                
Property and equipment     (1,333 )     —  
Right-of-use asset     (271 )     —  
Total deferred tax liabilities     (1,604 )     —  
Net deferred tax asset (liability)   $ —     $ —