v3.25.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Reconciliation of Effective Statutory Federal Income Tax Rate

As further described in Note 2, the Company elected to prospectively adopt the guidance in ASU 2023-09. The following table is a reconciliation of the Company’s effective income tax rate to the statutory federal income tax rate for the year ended December 31, 2025 in accordance with the guidance in ASU 2023-09:

 

 

Year Ended
December 31, 2025

 

 

Amount

 

 

Rate

 

Federal statutory income tax rate

 

$

(34,091

)

 

 

21.0

%

State taxes, net of federal benefit (1)

 

 

(12,453

)

 

 

7.7

%

Research tax credits

 

 

(7,331

)

 

 

4.5

%

Increase in deferred tax asset valuation allowance

 

 

53,688

 

 

 

(33.1

)%

Nontaxable or non-deductible items:

 

 

 

 

 

 

Disallowed compensation deductions

 

 

1,053

 

 

 

(0.6

)%

Stock-based compensation

 

 

(866

)

 

 

0.5

%

Effective income tax rate

 

$

 

 

 

(0.0

)%

 

(1)

For the year ended December 31, 2025, state taxes in the following states made up the majority (greater than 50% of the tax effect): New York and Massachusetts.

The following table is a reconciliation of the Company’s effective income tax rate to the statutory federal income tax rate for the year ended December 31, 2024 in accordance with the guidance prior to the adoption of ASU 2023-09:

 

 

Year Ended
December 31, 2024

 

Federal statutory income tax rate

 

 

21.0

%

State taxes, net of federal benefit

 

 

31.3

%

Research tax credits

 

 

7.5

%

Other

 

 

8.8

%

Increase in deferred tax asset valuation allowance

 

 

(68.6

)%

Effective income tax rate

 

 

(0.0

)%

 

Summary of net deferred tax assets

The following table provides a summary of net deferred tax assets:

 

 

December 31,

 

 

2025

 

 

2024

 

Deferred tax assets:

 

 

 

 

 

 

Net operating loss carryforwards

 

$

132,723

 

 

$

109,660

 

Capitalized research and development costs

 

 

52,153

 

 

 

35,142

 

Tax credit carryforwards

 

 

30,714

 

 

 

22,784

 

Stock-based compensation

 

 

13,243

 

 

 

9,151

 

Amortization of license fees

 

 

3,845

 

 

 

3,802

 

Accrued expenses

 

 

2,509

 

 

 

1,256

 

Deferred revenue

 

 

516

 

 

 

 

Lease liabilities

 

 

50

 

 

 

22

 

Other

 

 

20

 

 

 

15

 

Gross deferred tax assets

 

 

235,773

 

 

 

181,832

 

Valuation allowance

 

 

(235,293

)

 

 

(181,605

)

Total deferred tax assets

 

 

480

 

 

 

227

 

Deferred tax liabilities:

 

 

 

 

 

 

Right-of-use lease assets

 

 

(77

)

 

 

(18

)

Other

 

 

(403

)

 

 

(209

)

Total deferred tax liabilities

 

 

(480

)

 

 

(227

)

Net deferred tax assets

 

$

 

 

$

 

Summary of changes in the valuation allowance The changes in the valuation allowance for the years ended December 31, 2025 and 2024 were as follows:

 

 

Year Ended
December 31,

 

 

2025

 

 

2024

 

Valuation allowance as of beginning of year

 

$

181,605

 

 

$

123,452

 

Net increases recorded to income tax provision

 

 

53,688

 

 

 

58,153

 

Valuation allowance as of end of year

 

$

235,293

 

 

$

181,605