Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Reconciliation of Income Taxes Computed Using U.S. Federal Statutory Rate to that Reflected in Operations

A reconciliation of the Company’s total tax using the statutory income tax rate to the Company’s total tax using their effective income tax rate is as follows (in thousands):

	For the Year Ended
	December 31,
	2024		2023
Income tax at U.S. federal statutory rate	$	(6,173)	$	(3,643)
State taxes, net of federal benefit		—		—
Valuation allowance		5,735		3,604
Other		438		39
Total income tax	$	—	$	—

Schedule of Significant Components of Company's Deferred Tax Assets and Liabilities

The Company’s significant components of deferred tax assets are as follows (in thousands):

	As of December 31,
	2024		2023
Federal net operating loss carryforwards	$	9,903	$	7,235
Capitalized research and development expense		8,652		5,665
Tax credits		417		417
Other		180		100
Net deferred tax assets before valuation allowance		19,152		13,417
Valuation allowance		(19,152)		(13,417)
Net deferred tax assets after valuation allowance	$	—	$	—

Cara Therapeutics, Inc.

Components of Income Taxes (Benefit)

The Company’s pre-tax loss of $71,265 is domestic. The Company’s benefit from income taxes is as follows:

	December 31,
	2024		2023		2022
Current:
Federal	$	—	$	—	$	—
State		(398)		—		—
		(398)		—		—
Deferred:
Federal		—		—		—
State		—		—		—
		—		—		—
Benefit from income taxes	$	(398)	$	—	$	—

Schedule of Reconciliation of Income Taxes Computed Using U.S. Federal Statutory Rate to that Reflected in Operations

A reconciliation of income taxes computed using the U.S. federal statutory rate to that reflected in operations is as follows:

	December 31,
	2024		2023		2022
Income taxes using U.S. federal statutory rate	21.00	%	21.00	%	21.00	%
State income taxes, net of federal benefit	(5.05)	%	5.30	%	(1.00)	%
Impact of R&D tax credit on effective tax rate	2.59	%	3.68	%	4.91	%
Impact of foreign tax credit on effective tax rate	(0.29)	%	—	%	—	%
Stock option shortfalls and cancellations	(4.88)	%	(1.22)	%	(3.33)	%
Permanent items and other	(0.65)	%	(0.89)	%	(1.86)	%
Change in valuation allowance	(11.11)	%	(27.34)	%	(19.88)	%
Provision to return	(1.05)	%	(0.53)	%	0.16	%
	0.56	%	0.00	%	0.00	%

Schedule of Significant Components of Company's Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows:

	December 31,
	2024		2023
Valuation allowance	$	(200,656)	$	(192,791)
Net operating loss carryforwards		122,727		123,739
Federal and state tax credits		32,016		31,245
Stock-based compensation expense		1,619		3,855
Intangible asset amortization		34,823		33,162
Sales of future royalties and milestones		8,952		—
Other		519		2,101
Deferred tax assets		200,656		194,102
Other		—		(1,311)
Deferred tax liabilities:		—		(1,311)
Net deferred tax asset:	$	—	$	—