INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

Loss before income taxes consist of the following (in thousands):

SCHEDULE OF LOSS BEFORE INCOME TAXES

	2024			2023
	Years ended December 31,
	2024			2023
(in thousands)
Domestic	$	(44,529	)	$	(21,654	)
Foreign		20			(17	)
Total loss before income taxes	$	(44,509	)	$	(21,671	)

SCHEDULE OF INCOME TAX PROVISION

For each of the years ended December 31, 2024 and 2023, current tax provisions and current deferred tax provisions were recorded as follows (in thousands):

SCHEDULE OF INCOME TAX PROVISION

	2024		2023
	Years ended December 31,
	2024		2023
Current Tax Provision
Federal	$	-	$	-
State		3		1
Foreign		-		-
Current tax provision		3		1
Deferred Tax Provision
Federal		-		-
State		27		(4	)
Foreign		-		-
Deferred tax provision		27		(4	)
Total tax provision (benefit) for income taxes	$	30	$	(3	)

SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES

	2024			2023
	As of December 31,
	2024			2023
Deferred Tax Assets:
Net operating losses	$	16,496		$	12,740
Foreign net operating losses		782			784
Stock compensation		2,646			2,141
In-process research and development		1,030			1,009
Capitalized research and development expenses		4,548			3,105
Accrued expenses		192			-
R&D credit carryforwards		437			437
ROU Liabilities		187			8,932
Other		29			135
Total gross deferred tax assets		26,347			29,283
Valuation allowance		(26,023	)		(18,302	)
Net deferred tax assets		324			10,981

Deferred Tax Liabilities:
Fixed assets		-			(6	)
ROU Assets		(183	)		(8,349	)
Convertible debt		-			(2,507	)
Intangibles - goodwill		(229	)		(179	)
Total deferred tax liabilities		(412	)		(11,041	)
Net deferred taxes	$	(88	)	$	(60	)

SCHEDULE OF RECONCILIATION OF COMPUTED EXPECTED INCOME TAXES TO EFFECTIVE INCOME TAXES

The reconciliation between the Company’s effective tax rate on income from continuing operations and the federal statutory tax rate of 21% for the years ended December 31, 2024 and 2023 is as follows:

	2024			2023
	As of December 31,
	2024			2023
Tax at federal income tax rate		21.00	%		21.00	%
State income tax, net of federal tax		2.95	%		4.92	%
Foreign tax differential		0.00	%		(0.01	%)
Non-deductible expenses/excludable items		(0.05	%)		(0.74	%)
Convertible debt		(9.16	%)		(11.92	%)
Credits		(0.18	%)		0.00	%
Other		2.72	%		(3.34	%)
Change in valuation allowance		(17.35	%)		(9.90	%)
(Provision) benefit for income taxes		(0.07	%)		0.01	%

SCHEDULE OF UNCERTAIN TAX POSITIONS

	2024		2023
	As of December 31,
	2024		2023
Beginning balance of uncertain tax positions	$	393	$	121
Additions based on current year’s tax positions		-		-
Net changes based on prior year’s tax positions		-		272
Ending balance of uncertain tax positions	$	393	$	393

Ernexa Therapeutics Inc. S-1/A