Glucotrack, Inc. Income Taxes Disclosure

10. Income Taxes

 

Loss

 

Pretax loss for the years ended December 31, 2025 and 2024 consists of the following:

 Schedule of Pretax Loss for the Years

		2025				2024
		December 31,
		2025				2024
Domestic		$	19,285			$	22,502
Foreign			103				95
Pretax loss			19,388				22,597

  

Income tax reconciliation

 

Upon adoption of ASU 2023-09, Improvements to Income Tax Disclosures, the reconciliation of taxes at the federal statutory rate to the Company’s income tax expense (benefit) for the year ended December 31, 2025 is as follows:

 

Schedule of Effective Income Tax Rate Reconciliation

		December 31, 2025
Tax at statutory federal rate		$	4,071				21	%
State income taxes			-				-
Foreign
Foreign income tax differential			2				-
Deferred tax adjustment- NOLs			(162	)			(1	)%
Change in valuation allowance			136				1	%
Deferred tax adjustment – Sec. 174 costs			(647	)			(3	)%
Change in valuation allowance			(2,505	)			(13	)%
Non-taxable/non-deductible items
Change in fair value of derivative liabilities			(686	)			(4	)%
Other non-taxable/non-deductible items			(19	)			-
Other adjustments			(190	)			(1	)%
Income tax expense (benefit)			-				-

 

 

Composition of the change in the U.S. valuation allowance of deferred tax assets is as follows:

 

Schedule of Change in Valuation Allowance

Net loss in the U.S.			3,471
Deferred tax adjustment – Sec. 174 costs			(647	)
Research and experimental expense			(146	)
Vacation accrual			(173	)
Total			2,505

 

The reconciliation of taxes at the federal statutory rate to the Company’s income tax expense (benefit) for the year ended December 31, 2024 in accordance with the guidance prior to the adoption of ASU 2023-09 was as follows:

 Schedule of Income Tax Expense (Benefit)

Composition of deferred tax assets:		2025
Net loss before tax		$	22,597
Tax at statutory federal rate			4,745
Foreign income tax differential			2
Change in valuation allowance			(4,542	)
Non-deductible expenses			(205	)
Other differences			-
Income tax expense (benefit)			-

 

Composition of deferred tax assets

 

Deferred taxes result principally from temporary differences in the recognition of certain revenue and expense items for financial and income tax reporting purposes. Significant components of the Company’s future tax assets are as follows:

 Schedule of Deferred Taxes Assets

		December 31,
		2025				2024
Vacation accrual			36				208
Research and development costs – Sec. 174			2,482				3,276
Net operating losses carry forwards			21,829				16,981
Net deferred tax asset before valuation allowance			24,347				20,465
Valuation allowance			(24,347	)			(20,465	)
Net deferred tax assets			-				-

 

Valuation allowance reflects uncertainty in the Company’s ability to generate taxable income and realization of deferred tax assets.

 

Net Operating Losses (NOL) carryforward

 

As of December 31, 2025, the Company had cumulative Net Operating Losses (NOL) carry forwards for U.S. federal purposes of approximately $46.3 million to offset against future taxable income. Of the $46.3 million, $6.8 million will begin to expire in 2030 and the remainder can be carried forward for an indefinite period of time. Cumulative NOL carry forwards for Israeli income tax purposes are approximately $52.6 million to offset against future taxable income for an indefinite period of time.

 

NOL carry forwards by U.S. federal and Israel at December 31, 2024 were $31.6 million and $38.5 million, respectively.

 

Tax assessments

 

For federal, state and local income tax purposes the Company remains open for examination by the tax authorities for the tax years from 2022 through 2025 under the general statute of limitations. Due to the Company’s NOLs, all tax years beginning in 2010 are open for examination to the extent of NOLs. Israeli tax returns from 2022 through 2025 are open for examination.

 

As of December 31, 2025 and December 31, 2024, the Company had no unrecognized tax benefits or position which, in the opinion of management, would be reversed if challenged by a taxing authority. In the event the Company is assessed interest or penalties, such amounts would be classified as income tax expense.