Coherus Oncology, Inc. Income Taxes Disclosure

13.Income Taxes

The components of loss from continuing operations before income taxes are as follows:

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No income tax provision or benefit was recorded for the years ended December 31, 2025 and 2024, as the Company did not generate taxable income and maintained a full valuation allowance against its deferred tax assets.

The reconciliation of the statutory United States federal income tax rate to the Company’s loss from continuing operations before income taxes reflecting the Company’s adoption of ASU 2023-09 is as follows:

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The components of the Company’s net deferred tax assets (liabilities) as of December 31, 2025 and 2024 consist of the following:

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The tax benefit of net operating losses, temporary differences and credit carry forwards is recorded as an asset to the extent that management assesses that realization is “more likely than not.” The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which the temporary differences representing net future deductible amounts become deductible. As of December 31, 2025 and 2024, the Company recorded net a deferred tax liability of $1.1 million. The net deferred tax liability relates to in-process research and development that cannot be offset against the deferred tax assets. For remaining deferred tax assets, the Company has determined that it is more likely than not that its federal and state net deferred tax assets will not be realized due to the Company's history of losses and lack of other positive evidence. As a result, the Company has recorded a valuation allowance against the remaining federal and certain state net deferred tax assets as of December 31, 2025 and 2024.

The valuation allowance decreased by $44.7 million during the year ended December 31, 2025 and decreased by $10.6 million during the year ended December 31, 2024.

As of December 31, 2025, the Company had net operating loss carryforwards for federal income of $792.6 million, which will start to expire in the year 2036, and various states net operating loss carryforwards of $131.9 million, which have various expiration dates beginning in 2031.

As of December 31, 2025, the Company had federal research and development credit carryforwards for federal income tax purposes of $69.0 million, which will start to expire in the year 2031, and state research and development credit carryforwards of $31.1 million, which have no expiration date.

Utilization of the net operating loss and tax credit carryforwards may be subject to a substantial annual limitation due to ownership change limitations provided by Section 382 of the Internal Revenue Code of 1986, as amended, and similar state provisions. The annual limitation may result in the expiration of certain net operating loss and tax credit carryforwards before their utilization. Under the current tax law, the carry forward period of net operating losses generated from 2018 forward is indefinite. However, the carryforward period for net operating losses generated prior to 2018 remains the same. Therefore, the annual limitation may result in the expiration of certain net operating losses and tax credit carryforwards before their utilization. The Company files income tax returns in the United States federal jurisdiction, various United States state jurisdictions, and a foreign jurisdiction with varying statutes of limitations. The tax years from inception in 2011 forward remain open to examination due to the carryover of unused net operating losses and tax credits.

A reconciliation of the Company’s unrecognized tax benefits during 2025 and 2024 is as follows:

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As of December 31, 2025 and 2024, the Company had approximately $20.0 million and $19.2 million, respectively, of unrecognized benefits, none of which would currently affect the Company’s effective tax rate if recognized due to the Company’s deferred tax assets being offset by a valuation allowance. During 2025 and 2024, the Company did not recognize accrued interest and penalties related to unrecognized tax benefits.

On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was signed into law in the United States. This comprehensive tax legislation contains a broad range of tax reforms, including provisions that allow for the immediate expensing of domestic research and development expenses, restore and make permanent 100% bonus depreciation for qualifying assets, and ease limitations on the deductibility of interest expense. The legislation has multiple effective dates, with certain provisions taking effect in 2025 and others being implemented through various future years. The Company has accounted for the provisions of the OBBBA in its financial statements. The changes did not impact income taxes due to its cumulative tax loss and tax effect of a full valuation allowance against those balances.