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 Income Tax expense

The following table presents the domestic and foreign components of loss before income taxes for the years ended December 31, 2025 and 2024, respectively:

 

(in thousands)   2025     2024  
Loss before Income Taxes            
United States   $ (33,289 )   $ (38,243 )
Foreign     (598 )    
-
 
Total   $ (33,887 )   $ (38,243 )

 

The components of income tax provision consist of the following for the years ended December 31, 2025 and 2024, respectively:

 

(in thousands)     2025       2024  
Income Tax Expense                
Current                
Federal   $
-
    $
-
 
State & Local    
-
     
-
 
Foreign    
-
     
-
 
Total   $
-
    $
-
 
                 
Deferred Tax Expense                
Federal   $
-
    $
-
 
State & Local    
-
     
-
 
Foreign    
-
     
-
 
Total   $
-
    $
-
 
Net Income Tax Expense   $
-
    $
-
 
Schedule of Components of the Deferred Tax Assets and Liabilities Significant components of the Company’s deferred tax assets and liabilities at December 31, 2025 and 2024 are as follows:
(in thousands)   2025     2024  
Deferred tax assets:            
Net operating losses carry forward   $ 62,548     $ 47,875  
Deferred revenue     8,546       8,217  
Share-based compensation     14       1,572  
Research and development/orphan drug credits     24,811       23,296  
Capitalized research and development expenses     20,131       20,664  
Lease liabilities     414       369  
Others     44       20  
Total gross deferred tax assets     116,508       102,013  
Less: valuation allowance     (116,077 )     (101,613 )
Deferred tax assets, net     431       400  
                 
Deferred tax liabilities:                
Lease right-of-use assets     (431 )     (400 )
Total gross deferred tax assets     (431 )     (400 )
                 
Deferred tax assets, net   $
-
    $
-
 
Schedule of U.S. Federal Statutory Rates

The difference between the income tax provision and the amount that would result if the U.S. Federal statutory rates were applied to pre-tax losses for the year ended December 31, 2025 and 2024 after the adoption of ASU 2023-09 are as follows:

 

(in thousands)   December 31,
2025
    December 31,
2024
 
                         
Federal statutory income taxes   $ (7,116 )     (21.0 )%   $ (8,031 )     (21.0 )%
State income taxes    
-  
     
-  
%     (1,275 )     (3.3 )%
Foreign tax effects     126       0.4 %    
-  
     
-  
%
Research and development/orphan drug tax credit     (1,514 )     (4.5 )%     (2,787 )     (7.3 )%
Stock-based compensation     2,089       6.2 %     259       0.7 %
Non-taxable or nondeductible items:                                
Other     347       1.0 %     788       2.0 %
162M- disallowed salary     1,003       2.9 %    
-  
     
-  
%
Change in valuation allowance     5,065       15.0 %     11,046       28.9 %
Provision for income tax   $
-  
     
-  
    $
-  
     
-