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Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The tables below for the year ended December 31, 2025 provide the updated requirements of ASU 2023-09, which was adopted on a prospective basis. See Note 2, Summary of Significant Accounting Policies, for additional details on the adoption of ASU 2023-09.


The summary of income tax expense for the year ended December 31, 2025 is as follows (in thousands):

2025
Current income taxes
Federal$— 
State217 
Total current income taxes217 
Deferred income taxes
Federal — 
State— 
Total deferred income taxes— 
Total tax expense$217 
Federal— 
State217 

As previously disclosed for the year ended December 31, 2024, prior to the adoption of ASU 2023-09, the summary of the income tax expense for the year ended December 31, 2024 is as follows:

​
2024
Current income taxes
Federal$— 
State187 
Total current income taxes187 
Deferred income taxes
Federal — 
State— 
Total deferred income taxes— 
Total tax expense$187 
The following table presents a reconciliation of expected income tax (expense) benefit for the year ended December 31, 2025:
As of December 31, 2025
RateTax
At U.S. federal statutory rate21.00 %(28,924)
State taxes, net of federal effect(1)
(0.12)%165 
Tax credits
      Research and Development credit2.45 %(3,377)
Changes in valuation allowances(22.86)%31,487 
Nontaxable or nondeductible items
    Stock compensation(0.52)%712 
    Other Nontaxable or nondeductible items(0.04)%59 
Other Adjustments
   Other items(0.06)%95 
Effective income tax rate(0.15)%217 

(1) In 2025, state and local income taxes in Massachusetts (98)% comprise the majority of the state and local income taxes category.

As previously disclosed for the year ended December 31, 2024, prior to adoption of ASU 2023-09, the following table presents a reconciliation of expected income tax (expense) benefit for the year ended December 31, 2024:

As of December 31,
2024
Income tax computed at federal statutory tax rate21.0 %
State taxes, net of federal benefit6.7 %
Change in valuation allowance(31.3)%
General business credit carryovers4.1 %
Permanent differences(0.5)%
Other0.1 %
Total— %
The significant components of the Company's deferred income tax assets (liabilities) are as follows (dollars in thousands):

As of December 31,
20252024
Deferred tax assets
Net operating losses52,044 25,269 
Tax credit carryforwards8,283 4,570 
Intangibles1,367 1,528 
Startup costs, depreciation and other20 10 
Capitalized R&D (Section 174)31,983 26,292 
Stock compensation4,077 1,335 
Lease liability529 195 
Total gross deferred tax asset98,303 59,199 
Deferred tax liabilities - ROU asset(522)(182)
Valuation allowance(97,781)(59,017)
Net deferred tax asset— — 

The Company has had net operating losses (“NOLs”) since inception. As of December 31, 2025, and December 31, 2024, the Company has federal NOLs carryforwards of $191.6 million and $91.5 million, respectively, all of which can be carried forward indefinitely. The Company also has federal research and development tax credit carryforwards of $7.5 million and $4.1 million, respectively, available to reduce future tax liabilities, which expire at various dates beginning in 2040.

The Company has state NOLs carryforwards of $187.4 million and $96.1 million as of December 31, 2025 and December 31, 2024, respectively, to reduce future state taxable income. These state NOLs carryforwards will start expiring in 2039. The Company also has state research and development tax credit carryforwards of $1.0 million and $0.6 million, respectively as of December 31, 2025 and 2024, available to reduce future state tax liabilities, which expire at various dates beginning in 2035.

As required by ASC 740, management has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets, which are principally comprised NOL carryforwards, research and development credit carryforwards and an Intellectual Property Rights & Development license. Management has determined that it is more likely than not that the Company will not recognize the benefits of its federal and state deferred tax assets, and as a result, a valuation allowance of $97.8 million and $59.0 million has been established as of December 31, 2025, and 2024, respectively. The change in the valuation allowance was $38.8 million for the year ended December 31, 2025. The primary reason for the difference between the income tax expense recorded by the Company and the amount of income tax expense at statutory income tax rates was the change in the valuation allowance.

As of December 31, 2025 and 2024, the Company had no unrecognized tax benefits. The Company has not as yet conducted a study of its research and development credit carryforwards. This study may result in an adjustment to the Company’s research and development credit carryforwards; however, until a study is completed and any adjustment is known, no amounts are being presented as an uncertain tax position. A full valuation allowance has been provided against the Company’s research and development credits, and if an adjustment is required, this adjustment would be offset by an adjustment to the valuation allowance. Thus, there would be no impact to the balance sheets or statements of operations if an adjustment were required.
NOL and tax credit carryforwards are subject to review and possible adjustment by the Internal Revenue Service and may become subject to an annual limitation in the event of certain cumulative changes in the ownership interest of significant shareholders over a three-year period in excess of 50% as defined under Sections 382 and 383 in the Internal Revenue Code. This could limit the amount of tax attributes that can be utilized annually to offset future taxable income or tax liabilities. The Company has not determined whether a limitation has occurred as it has not concluded a Section 382 and 383 study yet.