Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

A reconciliation of loss before income taxes for domestic and foreign locations for the years ended December 31, 2024 and 2023 is as follows:

A reconciliation of income tax expense for the years ended December 31, 2024 and 2023 is as follows:


	Year Ended December 31,
Current:	2024			2023
Federal	$	—		$	—
State		—			—
Foreign		(5,537	)		(3,047	)
Total current income tax expense		(5,537	)		(3,047	)
Deferred:
Federal		—			—
State		—			—
Foreign		—			—
Total deferred income tax expense		—			—
Total income tax expense	$	(5,537	)	$	(3,047	)

The significant components of deferred income taxes at December 31, 2024 and 2023 are as follows:


	Year Ended December 31,
Deferred tax assets:	2024			2023
Net operating loss carryforwards	$	71,161,394		$	69,980,468
Research tax credits		9,173,787			10,034,233
Stock options		938,846			1,497,450
Other, net		269,439			355,204
Right-of-use liability		106,148			166,832
Research and experimentation capitalization		3,985,733			2,626,585
Total deferred tax assets		85,635,347			84,660,772
Deferred tax liabilities
Right-of-use asset		(94,000	)		(152,511	)
In-process research and development		(1,343,213	)		(1,343,213	)
Total deferred tax liabilities		(1,437,213	)		(1,495,724	)
Net deferred tax assets		84,198,134			83,165,048
Valuation allowance		(84,399,926	)		(83,366,840	)
Net deferred tax liability	$	(201,792	)	$	(201,792	)

A reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate is as follows:


	Year Ended December 31,
	2024			2023
Federal statutory income tax rate		21.0	%		21.0	%
State income taxes, net of federal benefit		4.8			6.3
Tax credits		(0.6	)		3.8
Change in valuation allowance		(9.4	)		(11.8	)
Expiration of attributes		(3.0	)		(12.0	)
Stock compensation		(4.0	)		(1.9	)
Uncertain tax positions		(8.9	)		(6.4	)
Other		0.1			1.0
Provision for income taxes		0.0	%		0.0	%

The following table summarizes the activity related to the Company’s unrecognized tax benefits:


	Year Ended December 31,
	2024		2023
Gross unrecognized tax benefits at January 1	$	1,589,266	$	896,981
Additions for tax positions taken in the prior year		1,079,358		—
Additions for tax positions taken in the current year		28,452		692,285
Gross unrecognized tax benefits at December 31	$	2,697,076	$	1,589,266

MEDICINOVA INC 10-K