v3.26.1
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Taxes  
Income Taxes

Note 9: Income Taxes

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Income tax expense consisted of the following for the years ended December 31, 2025 and December 31, 2024:

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As of December 31,

​

  ​ ​ ​

2025

  ​ ​ ​

2024

Current:

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​

  ​

​

​

  ​

Federal

​

$

—

​

$

—

State

​

 

825

​

 

800

Foreign

​

 

—

​

 

—

Total

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825

​

 

800

​

The Company had no deferred income tax expense for the years ended December 31, 2025 and 2024.

The provision for income taxes differs from the amount obtained by applying the federal statutory income tax rate as follows:

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​

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​

  ​ ​ ​

2025

  ​ ​ ​

2024

  ​ ​ ​

Federal taxes at statutory rate

 

21.00

%  

21.00

%  

State and local taxes, net of federal benefit

 

0.00

%  

4.98

%  

Change in Fair Value of SAFE Notes and other nondeductible/nontaxable items

 

(13.76)

%  

(6.00)

%  

Changes in valuation allowance

​

(7.36)

%  

(22.26)

%  

Tax credits

​

0.12

%  

0.00

%  

Deferred true-up

​

0.00

%  

2.28

%  

Effective income tax rate

 

0.00

%  

0.00

%  

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Deferred income taxes reflect the net tax effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Realization of net deferred tax assets is dependent upon future earnings, if any, the timing and amount of which are uncertain. Significant components of the Company’s deferred tax assets and liabilities are as follows:

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As of December 31,

​

  ​ ​ ​

2025

  ​ ​ ​

2024

Deferred tax assets:

​

​

​

​

​

​

Net operating losses

​

$

3,005,295

​

$

617,819

Stock-based compensation

​

 

2,786,419

​

 

458,061

Capitalized R&D expenses

​

 

1,378,270

​

 

208,112

Start-up costs

​

​

10,435

​

​

11,208

Property and equipment

​

​

—

​

​

38

Credits

​

​

71,006

​

​

—

Total deferred tax assets

​

 

7,251,425

​

 

1,295,238

Valuation allowance

​

 

(7,251,124)

​

 

(1,295,238)

Deferred income tax assets, net

​

$

301

​

$

—

​

​

​

​

​

​

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Deferred tax liabilities:

​

 

  ​

​

 

  ​

Property and equipment

​

​

(301)

​

​

—

Net deferred tax asset/(liability)

​

$

—

​

$

—

​

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The Company regularly assesses the ability to realize deferred tax assets recorded based upon the weight of available evidence, including such factors as recent earnings history and expected future taxable income on a jurisdiction-by-jurisdiction basis. In the event that the Company changes its determination as to the amount of realizable deferred tax assets, the Company will adjust its valuation allowance with a corresponding impact to the provision for income taxes in the period in which such determination is made. Due to the uncertainty surrounding their realization, the Company has recorded a full valuation allowance against the net deferred tax assets. Accordingly, no deferred tax asset has been recorded on the balance sheets. The Company’s valuation allowance increased during 2025 and 2024 by $5,955,886 and $1,271,946, respectively, primarily due to the generation of net operating losses and the capitalization of research and development expenditures.

As of December 31, 2025 and 2024, the Company has net operating loss carryforwards for federal income tax purposes of approximately $9,101,980 and $1,960,671, respectively, which do not expire and may be available to offset future income tax liabilities, but will generally limit the net operating loss deduction to the lesser of the net operating loss carryover or 80% of a corporation’s taxable income. As of December 31, 2025 and 2024, the Company’s state net operating loss carryforwards were $15,663,544 and $2,950,882 which may be available to offset future income tax liabilities and start to expire in 2043.

The Internal Revenue Code of 1986, as amended, imposes restrictions on the utilization of net operating losses in the event of an “ownership change” of a corporation. Accordingly, a Company’s ability to use net operating losses may be limited as prescribed under Internal Revenue Code Section 382 (“Section 382”). Events which may cause limitations in the amount of the net operating losses that the Company may use in any one year include, but are not limited to, a cumulative ownership change of more than 50% over a three-year period. Utilization of the federal and state net operating losses may be subject to substantial annual limitation due to the ownership change limitations provided by the Section 382 and similar state provision.

The Company files income tax returns in the U.S. federal and various state jurisdictions with varying statutes of limitations.