EyePoint, Inc. Income Taxes Disclosure
The components of loss before income taxes are as follows (in thousands):
|
|
Year ended |
|
|
Year Ended |
|
||
|
|
December 31, |
|
|
December 31, |
|
||
|
|
2025 |
|
|
2024 |
|
||
U.S. operations |
|
$ |
(231,783 |
) |
|
$ |
(130,880 |
) |
Non-U.S. operations |
|
|
100 |
|
|
|
100 |
|
Loss before income taxes |
|
$ |
(231,683 |
) |
|
$ |
(130,780 |
) |
A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate is as follows:
|
|
December 31, |
|
December 31, |
||||||||||||
|
|
2025 |
|
2024 |
||||||||||||
utory Rate |
|
|
(48,654 |
) |
|
21.0 |
|
% |
|
|
(27,462 |
) |
|
21.0 |
|
% |
State and Local Income Taxes |
|
|
147 |
|
|
(0.1 |
) |
|
|
|
(9,242 |
) |
|
7.1 |
|
|
Tax Credits |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Federal R&D Tax Credits |
|
|
(2,988 |
) |
|
1.3 |
|
|
|
|
(1,587 |
) |
|
1.2 |
|
|
Changes in Valuation Allowances |
|
|
47,723 |
|
|
(20.6 |
) |
|
|
|
38,993 |
|
|
(29.8 |
) |
|
Non-Taxable or Nondeductible Items |
|
|
715 |
|
|
(0.3 |
) |
|
|
|
(1,171 |
) |
|
0.9 |
|
|
Changes in Unrecognized Tax benefits |
|
|
— |
|
|
— |
|
|
|
|
— |
|
|
— |
|
|
Other Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Section 162 (m) - prior period generation |
|
|
3,024 |
|
|
(1.3 |
) |
|
|
|
— |
|
|
— |
|
|
Other Adjustments |
|
|
219 |
|
|
(0.1 |
) |
|
|
|
559 |
|
|
(0.5 |
) |
|
Effective Tax Rate |
|
|
186 |
|
|
(0.1 |
) |
% |
|
|
90 |
|
|
(0.1 |
) |
% |
In 2025 and 2024, Massachusetts comprised the majority of the state taxes.
The significant components of deferred income taxes are as follows (in thousands):
|
|
December 31, |
|
|
December 31, |
|
||
|
|
2025 |
|
|
2024 |
|
||
Deferred tax assets: |
|
|
|
|
|
|
||
Net operating loss carryforwards |
|
$ |
115,213 |
|
|
$ |
102,514 |
|
Capitalized R&D |
|
|
90,533 |
|
|
|
45,965 |
|
Deferred revenue |
|
|
— |
|
|
|
7,824 |
|
Lease liability |
|
|
6,214 |
|
|
|
6,340 |
|
Stock-based compensation |
|
|
23,247 |
|
|
|
17,717 |
|
Tax credits |
|
|
17,145 |
|
|
|
10,503 |
|
Other |
|
|
5,283 |
|
|
|
298 |
|
Total deferred tax assets |
|
|
257,635 |
|
|
|
191,161 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
||
Right-of-use assets |
|
|
5,485 |
|
|
|
5,737 |
|
Total deferred tax liabilities |
|
|
5,485 |
|
|
|
5,737 |
|
Deferred tax assets, net |
|
|
252,150 |
|
|
|
185,424 |
|
Valuation allowance |
|
|
252,150 |
|
|
|
185,424 |
|
Total deferred tax liability |
|
$ |
— |
|
|
$ |
— |
|
The valuation allowance generally reflects limitations on the Company’s ability to use the tax attributes and reduces the value of such attributes to the more-likely-than-not realizable amount. Management assessed the available positive and negative evidence to estimate if sufficient taxable income will be generated to use the existing net deferred tax assets. Based on a weighting of the objectively verifiable negative evidence in the form of cumulative operating losses over the three-year period ended December 31, 2025, management believes that it is not more likely than not that the deferred tax assets will be realized and, accordingly, a full valuation allowance has been established. The valuation allowance increased $66.7 million and $39.0 million for the years ended December 31, 2025 and 2024, respectively, with such increases attributed to the re-measurement of the net deferred tax assets at the year-end dates.
The Company has tax net operating loss and tax credit carry forwards in its individual tax jurisdictions, including approximately $49.3 million related to our 2018 acquisition of Icon Bioscience, Inc. At December 31, 2025, the Company had U.S. federal net operating loss carry forwards of approximately $407.2 million, which expire at various dates between calendar years 2025 and 2039. The utilization of certain of these loss and tax credit carry forwards may be limited by Sections 382 and 383 of the Internal Revenue Code as a result of historical or future changes in the Company’s ownership. At December 31, 2025, the Company had state net operating loss carry forwards of approximately $415.0 million, which expire between 2033 and 2040, as well as U.S. federal and state research and development tax credit carry forwards of approximately $18.3 million, which expire at various dates between calendar years 2025 and 2040. In addition, at December 31, 2025, the Company had net operating loss carry forwards in the UK of £20.9 million (approximately $25.3 million), which are not subject to any expiration dates.
The Company’s U.S. federal income tax returns for calendar years remain subject to examination by the Internal Revenue Service. The Company’s UK tax returns for fiscal years remain subject to examination.
Through December 31, 2025, the Company had no unrecognized tax benefits in its consolidated statements of comprehensive loss and no unrecognized tax benefits in its consolidated balance sheets as of December 31, 2025 and 2024, respectively.
As of December 31, 2025 and 2024, the Company had no accrued penalties or interest related to uncertain tax positions.
Cash paid for income taxes, net of refunds was $0.2 million and $0.1 million as of December 31, 2025 and 2024 respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 5, 2026 | Showing above |
| 2024 | Mar 6, 2025 | |
| 2023 | Mar 8, 2024 | |
| 2022 | Mar 10, 2023 | |
| 2021 | Mar 14, 2022 | |
| 2020 | Mar 12, 2021 | |
| 2019 | Mar 16, 2020 | |
| 2018 | Sep 18, 2018 | |
| 2017 | Sep 13, 2017 | |
| 2016 | Sep 13, 2016 | |
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.