INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the expected tax computed at the U.S. statutory federal income tax rate to the total benefit for income taxes for the years ended December 31, 2023 and 2022 is as follows:


	Year Ended December 31,
	2023		2022
Statutory federal income tax rate	21.0	%	21.0	%
State tax, net of federal benefit	2.5		2.7
Non-deductible stock compensation	(0.4)		(0.5)
Rate change	(0.1)		(1.1)
Other	(0.5)		—
Change in valuation allowance	(22.5)		(22.1)
Income tax provision	0.0	%	0.0	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets as of December 31, 2023 and 2022 were as follows (in thousands):


	December 31,
	2023		2022
Deferred tax assets:
Net operating loss	$	16,555	$	13,125
Capitalized R&D	13,328		6,788
Stock compensation	1,849		675
R&D credit	1,350		1,381
Intangible assets	441		—
Accruals and other temporary differences	575		179
Gross deferred tax assets	34,098		22,148
Valuation allowance	(33,661)		(22,118)
Total deferred tax assets	437		30
Deferred tax liabilities:
Embedded debt derivative liabilities	(274)		—
Other	(163)		—
Depreciation	—		(30)
Total deferred tax liabilities	(437)		(30)
Net deferred tax assets	$	—	$	—