INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Income before Income Tax, Domestic and Foreign

The following table summarizes income (loss) before income taxes:


(in thousands)	2025
Domestic	$	(8,978	)
Foreign		—

Total	$	(8,978	)

Schedule of Effective Income Tax Rates

The following is a reconciliation from the Company’s statutory rate to the effective tax rate reported in the financial statements:


	2025
(in thousands)	Amount			Rate
Statutory federal income tax rate	$	(1,885	)		21.0	%
Tax credits (federal):
Orphan drug credit		(1,331	)		14.8	%
Other		(231	)		2.6	%
Valuation allowance		2,203			(24.5	%)
Non-deductible or non-taxable items:
Share-based compensation		1,227			(13.7	)%
Other adjustments		17			(0.2	%)

Effective income tax rate	$	—			0.0	%

The Company’s effective income tax rates are different from the federal statutory tax rates in 2024 predominantly due to the valuation allowance, tax credits, and state taxes. A reconciliation of the effect of applying the federal statutory rate to the net loss and effective income tax rate are as follows:


	2024
U.S. federal statutory income tax rate		21.0	%
State income taxes, net of federal income tax benefit		5.4	%
Tax credits		10.7	%
Other		(2.9	)%
Valuation allowance		(34.2	)%

Effective income tax rate		—	%

Schedule of Deferred Income Tax Benefits and Liabilities

The tax effect of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases that give rise to deferred tax assets and liabilities are as follows at December 31, 2025 and 2024:


(in thousands)	2025			2024
Net operating loss carryforwards	$	50,322		$	45,973
Amortization		1,775			1,341
Section 174 capitalization		19,947			22,479
Research and development tax credits		25,701			24,047
Share-based compensation		2,405			2,654
Other		301			1,476

Total deferred tax assets		100,451			97,970
Valuation allowance		(100,451	)		(97,970	)

Net deferred tax assets	$	—		$	—