Income Taxes

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Note 13 – Income Taxes

Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

OUR BOND INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Net deferred tax items consist of the following components as of December 31, 2025 and 2024 (in thousands):

	Years Ended December 31,
	2025			2024
Deferred tax assets:
Net operating loss carryover	$	19,548		$	17,736
Net operating loss carryover - States		4,721			4,471
R&D credit carryforward		350			325
Stock-based compensation		500			390
R&D capitalization		2,537			2,210
Other		22			6
Deferred tax liabilities
Depreciation		(48	)		(48	)
Other		—			—
Valuation allowance		(27,630	)		(25,090	)
Net deferred tax asset	$	—		$	—

The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income for the year ended December 31, 2025 due to the following (in thousands):

	Years Ended December 31,
	2025			2024
Book income (loss)	$	(2,239	)		$ (2,320	)
Non deductible other expenses (M&E 50% and penalties)		1			1
State income taxes, net of federal tax benefit		(295	)		(246	)
Valuation allowance		2,540			2,565
	$	—		$	—

At December 31, 2025, the Company had net operating loss carryforwards of approximately $93 million that may be offset against future taxable income varying from the year 2025 through indefinitely. No tax benefit has been reported in the December 31, 2025, financial statements since the potential tax benefit is offset by a valuation allowance of the same amount.

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carryforwards for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carryforwards may be limited as to use in future years. NOLs arising in tax years beginning in 2018 may be carried forward indefinitely.