Curanex Pharmaceuticals Inc Income Taxes Disclosure
6. Income Taxes
Due to the Company’s net losses and the valuation allowance provided on the related deferred tax assets, there were provisions for income taxes for the years ended December 31, 2025, and 2024.
The components of income tax provision (benefit) for the years ended December 31, 2025 and 2024 are as follows:
| For the Years Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Current income tax expense: | ||||||||
| Federal | $ | $ | ||||||
| State and local | ||||||||
| Total current income tax expense: | ||||||||
| Deferred income tax expense (benefit) | ||||||||
| Federal | ||||||||
| State and local | ||||||||
| Total deferred income tax expense | ||||||||
| Total income tax provision (benefit) | $ | $ | ||||||
The following table presents a reconciliation of the U.S. federal statutory income tax rate to the Company’s effective tax rate for the years ended December 31, 2025 and 2024:
| For
the Years Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| U.S. federal statutory rate | 21.0 | % | 21.0 | % | ||||
| State and local taxes, net of federal benefit | 5.1 | % | 5.1 | % | ||||
| Change in valuation allowance | (26.1 | )% | (26.1 | )% | ||||
| Effective tax rate | % | % | ||||||
Deferred income tax assets as of December 31, 2025 and 2024, are as follows:
| For
the Years Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Net operating losses carry forwards | $ | 1,017,359 | $ | 130,087 | ||||
| Others | ||||||||
| Total deferred tax assets | 1,017,359 | 130,087 | ||||||
| Less valuation allowance | (1,017,359 | ) | (130,087 | ) | ||||
| Total deferred tax assets | $ | $ | ||||||
In assessing the realization of deferred tax assets, management evaluates whether it is more likely than not that some or all of these assets will not be realized. The ultimate realization of deferred tax assets depends on generating future taxable income during the periods when these temporary differences become deductible.
Based on the available objective evidence, management believes it is more likely than not that the net deferred tax assets will not be realizable. Accordingly, the Company has applied a full valuation allowance against its net deferred tax assets as of December 31, 2025, and 2024. The net change in the total valuation allowance between December 31, 2025, and 2024, was an increase of $887,271.
The Company is subject to U.S. federal and state income tax examinations by the Internal Revenue Service (IRS) and relevant state tax authorities. The Company is incorporated in the state of Nevada, which does not impose a corporate income tax.
The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. As of December 31, 2025, and 2024, the Company did not have any significant uncertain tax positions or unrecognized tax benefits. Additionally, as of December 31, 2025, and 2024, the Company has federal net operating loss carry forwards of $4,847,550 and $622,449, respectively, for tax purposes. These net operating loss carryforwards may be carried forward indefinitely; however, their utilization may be subject to limitations under Section 382 of the Internal Revenue Code in the event of a change in ownership.
Want the next Curanex Pharmaceuticals Inc income taxes disclosure the moment it drops?
Set a Sentinel and we'll alert you the moment Curanex Pharmaceuticals Inc's next filing hits EDGAR. No credit card, your email never gets sold.
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.