v3.25.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Components of Net Loss Before Tax Provision from Income Taxes

The components of net loss before tax provision from income taxes are as follows (in thousands):

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

United States

 

$

(59,579

)

 

$

(67,137

)

United Kingdom

 

 

(272

)

 

 

(6,760

)

Total

 

$

(59,851

)

 

$

(73,897

)

 

Schedule of Reconciliation of Statutory Federal Income Tax Rate to Provision for Income Taxes

The following table presents a reconciliation of the Company’s expected tax computed at the U.S. statutory federal income tax rate to the total provision for income taxes (in thousands):

 

 

Year Ended December 31,

 

 

 

 

2025

 

 

2024

 

 

U.S. federal taxes at statutory rate

 

$

(12,569

)

 

$

(15,518

)

 

    State taxes, net of federal benefit

 

 

 

 

 

1

 

 

    Acquired in-process research and development, related party

 

 

 

 

 

7,698

 

 

    Effect of cross-border transfers

 

 

1,303

 

 

 

 

 

    Non-deductible officer compensation

 

 

293

 

 

 

575

 

 

    Foreign rate differential

 

 

237

 

 

 

(211

)

 

    Stock-based compensation

 

 

83

 

 

 

588

 

 

    Tax credits

 

 

(403

)

 

 

(86

)

 

    Other expenses, net

 

 

(228

)

 

 

(123

)

 

    Change in valuation allowance

 

 

11,284

 

 

 

7,076

 

 

Effective income tax rate

 

$

 

 

$

 

 

Schedule of Deferred Tax Assets and Liabilities

The significant components of the Company’s deferred tax assets and liabilities are presented below (in thousands):

 

 

 

December 31,

 

 

 

2025

 

 

2024

 

Deferred tax assets:

 

 

 

 

 

 

    Net operating losses

 

$

28,202

 

 

$

22,725

 

    Intangible assets

 

 

4,447

 

 

 

1,946

 

    Research and development expenses

 

 

3,824

 

 

 

2,388

 

    Stock compensation expense, including 162m limitations

 

 

1,400

 

 

 

432

 

    Research credits

 

 

1,104

 

 

 

702

 

    Accrued compensation and benefits

 

 

332

 

 

 

303

 

    Operating lease liabilities

 

 

113

 

 

 

121

 

    Other expenses

 

 

37

 

 

 

13

 

        Total deferred tax assets

 

 

39,459

 

 

 

28,630

 

Valuation allowance

 

 

(39,368

)

 

 

(28,492

)

    Net deferred tax assets

 

 

91

 

 

 

138

 

Deferred tax liabilities:

 

 

 

 

 

 

    Operating lease, right-of-use asset

 

 

(106

)

 

 

(112

)

    Other assets

 

 

15

 

 

 

(26

)

        Total deferred tax liabilities

 

 

(91

)

 

 

(138

)

Net deferred tax assets and liabilities

 

$

 

 

$

 

Schedule of Valuation Allowance

The changes in the valuation allowance were as follows (in thousands):

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

Valuation allowance as of beginning of year

 

$

28,492

 

 

$

20,856

 

    Net increases recorded to income tax provision

 

 

10,876

 

 

 

7,636

 

Valuation allowance as of end of year

 

$

39,368

 

 

$

28,492