Income taxes

12 Months Ended

Dec. 31, 2025

Income taxes

Income taxes

6. Income taxes

The components of net loss are as follows:

	Year ended December 31,
	2025		2024
Foreign	$	(256,019)	$	(218,261)
Domestic		(12,343,550)		(12,740,450)
Net loss	$	(12,599,569)	$	(12,958,711)

The effective tax rate varies from the federal statutory tax rate as a result of the following differences:

	Year Ended December 31, 2025
	Amount		Percent
Tax at U.S. statutory rate	$	(2,646,101)	21.0	%
Foreign tax effects
Others		1,024	—	%
Tax credits
Research and development credits		(42,220)	0.3	%
Changes in valuation allowance		2,592,855	(20.6)	%
Nontaxable and nondeductible items		20,946	(0.2)	%
Changes in unrecognized tax benefits
Other adjustments		73,496	(0.5)	%
Effective tax rate	$	—	(0)	%

As the Company did not recognize any state tax expense for the year ended December 31, 2025 there are no states making up greater than 50% of the tax effect.

A reconciliation of the effect of applying the federal statutory rate to the net loss and the effective income tax rate is as follows:

	Year ended December 31,
	2024
Statutory federal income tax rate	21.0	%
Permanent differences	(0.1)	%
Section 162(m) limitation	—	%
Changes in valuation allowance	(19.7)	%
Other	(1.2)	%
Effective income tax rate	—	%

Significant components of the Company’s deferred taxes as of December 31, 2025 and 2024 are as follows:

	December 31,
	2025		2024
Deferred tax assets:
Net operating loss carryforward	$	48,568,167	$	41,058,034
Stock compensation		4,130,337		4,051,018
Amortization		21,883		39,412
Capitalized research and development costs		3,386,699		4,850,529
Fixed Assets		878		981
Research and development credits		42,220		—
Accrued Expenses		199,095		165,558
Gross deferred tax assets		56,349,279		50,165,532
Valuation allowance		(56,349,279)		(50,165,532)
Total deferred tax assets	$	—	$	—

The Company has no income tax expense due to operating losses incurred for the years ended December 31, 2025 and 2024. The Company has provided a valuation allowance for the full amount of the net deferred tax assets as, based on all available evidence, it is considered more likely than not that all the recorded deferred tax assets will not be realized in a future period. At December 31, 2025, the Company has $143.3 million, $85.4 million, and $91.8 million of foreign, federal and state net operating loss carryforwards, respectively, that expire at various dates through 2037. Certain of

these foreign, federal and state net operating loss carryforwards may be subject to Internal Revenue Code Section 382 or similar provisions, which impose limitations on their utilization.

The Company amended its Federal income tax return for year ended December 31, 2023, to claim Research and Development credits of $42,220 and reducing NOL carryforward. Certain of these foreign, federal and state net operating loss carryforwards may be subject to Internal Revenue Code Section 382 or similar provisions, which impose limitations on their utilization.

The valuation allowance increased in 2025 and 2024 by $6.2 million and $0.7 million, respectively, due to an increase in the deferred tax assets by the same amounts, primarily due to the increase in net operating loss generation. Realization of the future tax benefits is dependent on many factors, including the Company’s ability to generate taxable income within the net operating loss carryforward period. Under the provisions of the U.S. Internal Revenue Code and Sweden tax law, certain changes in the Company’s ownership, including a sale of the Company or significant changes in ownership due to sales of equity, may have limited, or may limit in the future, the amount of net operating loss carryforwards that could be used annually to offset future taxable income. For U.S. and Swedish income tax purposes, the Company has not completed a study to assess whether a change of control has occurred or whether there have been changes of control since the Company’s formation due to the complexity and cost associated with such study and because there could be additional changes in control in the future. As a result, the Company is not able to estimate the effect of the change in control, if any, on the Company’s ability to utilize U.S. or Swedish net operating losses or other tax attribute carryforwards in the future. For Swedish income tax purposes, the Company’s net operating losses may be subject to limitations in accordance with the country’s group contribution restriction laws.

The Company files tax returns in Sweden, the United States, Massachusetts and Pennsylvania. Income tax returns prior to 2022 in the United States and Massachusetts are no longer subject to examination and income tax returns prior to 2019 are no longer subject to examination in Sweden. The Company is not currently under examination by the IRS or any other jurisdictions for any tax years.

As tax law is complex and often subject to varied interpretations, it is uncertain whether some of the Company’s tax positions will be sustained upon examination. Tax liabilities associated with uncertain tax positions represent unrecognized tax benefits, which arise when the estimated benefit recorded in the Company’s financial statements differs from the amounts taken or expected to be taken in a tax return because of the uncertainties described above. Substantially all of these unrecognized tax benefits, if recognized, would benefit the Company’s effective income tax rate.

As of December 31, 2025 and 2024, the Company had approximately $0.1 million of liabilities, respectively, related to uncertain tax positions. As the Company’s uncertain tax positions can be offset by available net operating losses, the Company did not recognize interest and penalties for 2025 and 2024.

The Company has not made payments or received refunds for income taxes for the years ended December 31, 2025 and 2024.

On July 4, 2025, the “One Big Beautiful Bill Act” (OBBBA) was enacted into law. The legislation made several changes to the U.S. tax code, including the return of 100% bonus depreciation, the ability to immediately deduct domestic research and development costs, a more favorable rule for deducting interest expenses, and updates to international tax rules around global intangible low-taxed income and foreign-derived intangible income. The Company has evaluated the impact of the new tax provision and determined it to have an immaterial impact on the consolidated financial results.