Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Reconciliation of Statutory to Effective Income Tax Rate

The tables below represent a reconciliation of the U.S. federal statutory income tax rate to effective tax rate. The Company has adopted the guidance in ASU 2023-09 on a prospective basis. The following table reflects the reconciliation rate for 2025 under the new guidance:

	2025
	Tax Expense			Effective Rate
Income tax (benefit) provision at federal statutory rate	$	(10,414	)		(21.0	)%
Change in valuation allowance		4,594			9.3
State income tax, net of federal income tax effect (1)		3,357			6.8
Tax credits		(848	)		(1.7	)
Nontaxable or nondeductible items:
Nondeductible change in warrant liability fair value		2,626			5.3
Stock compensation		264			0.5
Other		421			0.8
Effective tax rate	$	—			—	%

(1)

North Carolina makes up the majority (greater than 50%) of the state income tax expense, net of federal income tax effect category.

The table below represents a reconciliation of the U.S. federal statutory income tax rate to effective tax rate for the year ended December 31, 2024 under the prior guidance.

	2024
	Effective Rate
Income tax (benefit) provision at federal statutory rate		(21.0	)%
Valuation allowance		26.5
State income tax, net of federal benefit		(4.9	)
Private Opus acquisition		(11.2	)
Stock options		0.8
Acquired IPR&D		12.6
Research and development		(1.6	)
Other		(1.2	)
Effective tax rate		—	%

Components of Income Tax Provision (Benefit)

The components of income tax provision (benefit) consisted of the following for the years ended December 31, 2025 and 2024 (in thousands):

	2025			2024
Loss before income taxes:	$	(49,591	)	$	(57,532	)

Current:
Federal	$	—		$	—
State		—			—
Total current tax provision (benefit)		—		$	—
Deferred:
Federal		—			—
State		—			—
Total tax provision (benefit)	$	—		$	—

Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are summarized in the tables below as of December 31, 2025 and 2024 (in thousands):

	2025			2024
Deferred tax assets:
Federal and state operating loss carryforwards	$	32,248		$	20,342
Acquired intangibles		484			547
Deferral of research and development costs		1,451			9,582
Organizational costs		4			5
Accruals and other		329			77
Stock-based compensation		1,937			2,035
Research and development credit carryforward		2,911			2,089
Transaction costs in connection with Opus Acquisition		663			753
Subtotal		40,027			35,430
Valuation allowance		(39,997	)		(35,403	)
Total deferred tax assets, net of valuation allowance		30			27
Deferred tax liabilities:
Fixed assets		(30	)		(27	)
Total deferred tax liabilities		(30	)		(27	)
Net deferred tax assets	$	—		$	—