ArriVent BioPharma, Inc. Income Taxes Disclosure

The Company accounts for income taxes under ASC 740. The Company has incurred losses since inception and has not recognized any current or deferred income tax expense for the year ended December 31, 2025. It is more likely than not that the Company’s deferred tax assets will not be realized. Accordingly, a full valuation allowance has been recorded against the deferred tax assets. A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes after the adoption of ASU 2023-09 is as follows (in thousands):

Although state income taxes are net zero due to the Company's valuation allowance, Pennsylvania and Maryland made up the majority (greater than 50 percent) of the tax effect in this category.  There were no cash tax payments made or refunds received for the year ended December 31, 2025. A reconciliation of the provision for income taxes to the

amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes before the adoption of ASU 2023-09 is as follows:

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Deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amounts and tax bases of assets and liabilities using enacted tax rates in effect for years in which differences are expected to reverse.

Significant components of the Company’s deferred tax assets and liabilities consisted of the following (in thousands):

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The Company records a valuation allowance against its net deferred tax asset when it is not more likely than not that such assets will be realized. The realization of deferred tax assets depends upon the Company’s ability to generate future taxable income or other tax planning strategies available in the relevant taxing jurisdiction. In evaluating the realizability of its deferred tax assets, Management must determine whether there will be sufficient taxable income to allow for the realization of deferred tax assets. Based upon the historical and anticipated future losses, Management has determined that the deferred tax assets do not meet the more-likely-than-not threshold for realizability. As a result, the Company recorded a valuation allowance against its net deferred tax assets as of December 31, 2025. The valuation allowance increased by $40.4 million and $24.7 million during the year ended December 31, 2025 and 2024, respectively due to the current year pre-tax losses and research and development tax credits.

As of December 31, 2025 and 2024, the Company had federal net operating loss (“NOL”) carryforwards of $138.5 million and $67.4 million, which will be carried forward indefinitely to offset future taxable income, subject to an 80 percent limitation of taxable income annually. In addition, as of December 31, 2025 and 2024, state NOLs exist of approximately $121.7 million and $58.8 million subject to various carryforward periods with the first state NOLs beginning to expire in 2043. The Company also had research and development tax credit carryforwards of approximately

$9.1 million and $7.1 million as of December 31, 2025 and 2024. The research credit carryforward will begin to expire in 2041. Under Sections 382 and 383 of the Internal Revenue Code of 1986, as amended, the Code, if a corporation undergoes an “ownership change,” the corporation’s ability to use its pre-change NOL carryforwards and credits to offset its post-change income and taxes may be limited. In general, an “ownership change” occurs if there is a cumulative change in ownership by one or more “5% shareholders” (as defined under U.S. income tax laws) that exceeds 50 percentage points over a rolling three-year period. Similar rules apply under state tax laws. The Company has not determined if it has experienced Section 382 ownership changes in the past and if a portion of the NOL and tax credit carryforwards are subject to an annual limitation under Section 382. In addition, the Company may experience ownership changes in the future as a result of subsequent shifts in stock ownership, some of which may be outside of our control.

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As of December 31, 2025, the Company had no accrued interest or penalties related to uncertain tax positions and no amounts have been recognized in the Company’s financial statements. The Company is currently subject to U.S. Federal and state tax examination. As a result of tax attribute carryforwards, all U.S. federal and state tax periods from the Company’s inception in 2021 through 2025 remain open. The Company does not have a reserve for uncertain tax positions.