v3.26.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Loss Before Income Taxes

The Company reported a loss before income taxes consisting of the following (in thousands):

 

 

December 31,

 

 

 

2025

 

 

2024

 

Domestic

 

$

(41,779

)

 

$

(17,434

)

Foreign

 

 

64

 

 

 

—

 

Loss before income taxes

 

$

(41,715

)

 

$

(17,434

)
Schedule of Company's Effective Tax Rate

A reconciliation of the statutory U.S. federal income tax rate to the Company’s effective tax rate is as follows:

 

 

December 31,

 

 

 

2025

 

 

2024*

 

U.S. federal statutory rate

 

$

(8,760

)

 

21.0

%

 

$

(3,661

)

 

21.0

%

Foreign tax effects

 

 

4

 

 

—

 

 

 

—

 

 

—

 

Tax credits

 

 

(564

)

 

1.4

 

 

 

—

 

 

—

 

Change in valuation allowance

 

 

8,582

 

 

(20.6

)

 

 

3,893

 

 

(22.3

)

Nontaxable or nondeductible items

 

 

330

 

 

(0.8

)

 

 

(229

)

 

1.3

 

Other adjustments

 

 

408

 

 

(1.0

)

 

 

(3

)

 

—

 

Effective income tax rate

 

$

—

 

 

0.0

%

 

$

—

 

 

0.0

%

*While the underlying tax effects remain unchanged from the prior year, certain reconciling items have been reallocated consistent with the required ASU 2023-09 disclosure.
Schedule of Deferred Tax Assets

The components of deferred tax assets and liabilities related to net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income taxes purposes were as follows (in thousands):

 

 

December 31,

 

 

 

2025

 

 

2024

 

Deferred tax assets:

 

 

 

 

 

 

Royalty agreement liabilities

 

$

5,415

 

 

$

3,913

 

Net operating loss

 

 

91,962

 

 

 

81,971

 

Section 174 R&D capitalization

 

 

5,797

 

 

 

6,288

 

Stock-based compensation

 

 

1,791

 

 

 

419

 

Accrued expenses and other

 

 

690

 

 

 

744

 

Other tax credits

 

 

589

 

 

 

24

 

Orphan drug credit

 

 

199

 

 

 

199

 

Lease liabilities

 

 

158

 

 

 

—

 

Startup costs

 

 

76

 

 

 

86

 

Deferred tax assets before valuation allowance

 

$

106,677

 

 

$

93,644

 

 

 

 

 

 

 

 

Deferred tax liabilities

 

 

 

 

 

 

Right of use assets

 

$

(142

)

 

$

—

 

Other deferred tax liabilities

 

 

(400

)

 

 

(390

)

Net deferred tax

 

 

106,135

 

 

 

93,254

 

Valuation allowance

 

 

(106,135

)

 

 

(93,254

)

Net deferred tax assets

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

(Increase) decrease in valuation allowance

 

$

(12,881

)

 

$

(77,240

)