Taxes on Income

12 Months Ended

Dec. 31, 2024

TAXES ON INCOME

NOTE 9:-

TAXES ON INCOME

Income tax rates applicable to the Company in 2024 and 2023 was 21%.

Foreign income tax:

Income tax rates:

Presented hereunder are the income tax rates relevant to the Company’s Israeli subsidiary

2023 - 23%

2024 - 23%

As of December 31, 2024, the Company had U.S. federal net operating loss carryforwards of approximately $3,210 available to reduce future taxable income. There is a limitation on the amount of taxable income that can be offset by carryforwards after a change in control (generally greater than a 50% change in ownership). Losses from 2018 and forward that can only offset 80% of taxable income in a future year.

The Company’s Israeli subsidiary have estimated total available carryforward operating tax losses for Israeli income tax purposes of approximately $3,755 as of December 31, 2024.

Deferred income taxes:

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets are as follows:

	As of December 31,
	2024			2023
Deferred tax assets:
Net operating loss carry forward	$	6,965		$	5,741

Deferred tax asset before valuation allowance		1,538			1,270
Valuation allowance		(1,538	)		(1,270	)

Net deferred tax asset	$	-		$	-

Reconciliation of the theoretical tax expense to the actual tax expense:

The main reconciling item between the statutory tax rate of the Company and the effective tax rate is the recognition of valuation allowance in respect of deferred taxes relating to accumulated net operating losses carried forward due to the uncertainty of the realization of such deferred taxes.

	Year ended December 31,
	2024			2023

Net loss, as reported in the consolidated statements of comprehensive loss	$	1,519		$	1,344	*
Statutory tax rate		21	%		21	%
Computed “expected” tax income		319			282	*
Valuation allowance		(319	)		(282	)*

Taxes on income	$	-		$	-

(*)

reclassified.

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
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-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 2: http://www.xbrl.org/2003/role/exampleRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Raphael Pharmaceutical Inc. 10-K