Income Taxes

12 Months Ended

Dec. 31, 2025

Income Taxes

Income Taxes

(10) Income Taxes

The federal and state provision (benefit) for income taxes was $0 for the years ended December 31, 2025 and 2024.

A reconciliation of income tax provision (benefit) computed at the statutory federal income tax rate to income taxes as reflected in the financial statements for the years ended December 31, 2025 and 2024 is as follows:

	Year Ended
	December 31,
	2025				2024
Federal income tax benefit at statutory rate	$	(6,059,381)	21.0	%	$	(5,163,979)	21.0	%
State and local tax, net of federal benefit		—	—	%		—	—	%
Tax Credits
Research and development credit		(1,625,304)	5.6	%		(1,065,647)	4.3	%
Change in valuation allowance		7,460,209	(25.8)	%		6,127,570	(24.9)	%
Nontaxable or Nondeductible Items
Stock-based compensation		252,715	(0.9)	%		81,012	(0.3)	%
Change in fair value of warrants		(29,820)	0.1	%		(372,268)	1.5	%
Nondeductible compensation		—	—	%		392,495	(1.6)	%
Other		1,581	—	%		817	—	%
Effective income tax rate	$	—	0.0	%	$	—	0.0	%

Deferred taxes are recognized for temporary differences between the basis of assets and liabilities for financial statement and income tax purposes. The significant components of the Company’s deferred tax assets are comprised of the following:

	As of December 31,
	2025		2024
Net operating loss carryforwards	$	18,213,829	$	13,634,896
Stock compensation		4,531,448		4,390,635
Capitalized research and development		940,319		1,137,406
Section 174		15,215,610		12,802,738
Research and development credit carryforwards		6,823,328		5,198,123
Other		85,021		76,757
Total deferred tax assets		45,809,555		37,240,555
Less valuation allowance		(45,809,555)		(37,240,555)
Net deferred taxes	$	—	$	—

As of December 31, 2025, the Company had U.S. federal net operating loss (“NOL”) carryforwards of $72.4 million which may be available to offset future income tax liabilities and will expire beginning in 2032. As of December 31, 2025, the Company also had U.S. state NOL carryforwards of $74.9 million which may be available to offset future income tax liabilities and will expire beginning in 2028.

The Company has recorded a full valuation allowance against its net deferred tax assets as of December 31, 2025 and 2024 because the Company has determined that it is more likely than not that these assets will not be fully realized due to historic net operating losses incurred. The Company experienced a net change in valuation allowance of $8.6 million and $7.1 million in the years ended December 31, 2025 and 2024, respectively.

As of December 31, 2025, the Company had federal research and development tax credit carryforwards of $6.8 million available to reduce future tax liabilities, which expire beginning in 2028.

Under the provisions of the Internal Revenue Code, the NOL and tax credit carryforwards are subject to review and possible adjustment by the Internal Revenue Service (“IRS”) and state tax authorities. NOL and tax credit carryforwards may become subject to an annual limitation in the event of certain cumulative changes in the ownership interest of significant stockholders over a three-

year period in excess of 50%, as defined under Sections 382 and 383 of the Internal Revenue Code as well as similar state provisions. This could limit the amount of tax attributes that can be utilized annually to offset future taxable income or tax liabilities. The amount of the annual limitation is determined based on the value of the Company immediately prior to the ownership change. Subsequent ownership changes may further affect the limitation in future years. The Company has completed financings since its inception which may have resulted in a change in control as defined by Sections 382 and 383 of the Internal Revenue Code or could result in a change in control in the future.

The Company files tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by federal and state jurisdictions, where applicable. The Company’s tax years are still open under status from 2022 to present. All open years may be examined to the extent that tax credits or NOL carryforwards are used in future periods. The Company will recognize interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2025, the Company had no accrued interest or penalties related to uncertain tax positions and no amounts have been recognized in the Company’s consolidated statements of operations.

The Tax Cuts and Jobs Act resulted in significant changes to the treatment of research and experimental expenditures under Section 174. For tax years beginning after December 31, 2021, taxpayers are required to capitalize and amortize these expenditures that are paid or incurred in connection with their trade or business. Specifically, costs for U.S.-based research and experimental activities must be amortized over five years and costs for foreign research and experimental activities must be amortized over 15 years—both using a midyear convention. On July 4, 2025, the President of the United States signed into law the One Big Beautiful Bill Act (“OBBBA”), which makes permanent many of the beneficial expired and expiring provisions originally enacted in the Tax Cuts and Jobs Act of 2017 and reinstates the ability to immediately expense domestic research and development expenditures. Although no longer required, the Company has elected to continue capitalizing domestic R&D expenditures in 2025 and will continue to assess this position with completion of the tax return.