GeoVax Labs, Inc. Income Taxes Disclosure

8.         Income Taxes

 

At December 31, 2025, we have a consolidated federal net operating loss (“NOL”) carryforward of approximately $135.4 million available to offset against future taxable income of which approximately $25.7 million expires in varying amounts in 2026 through 2037. Additionally, we have approximately $6.7 million in research and development (“R&D”) tax credits that expire in 2026 through 2045 unless utilized earlier. No income taxes have been paid to date. Section 382 of the Internal Revenue Code contains provisions that may limit our utilization of our NOL and R&D tax credit carryforwards in any given year as a result of significant changes in ownership interests that have occurred in past periods or may occur in future periods.

 

Deferred income taxes reflect the net effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. We have established a full valuation allowance equal to the amount of our net deferred tax assets due to uncertainties with respect to our ability to generate sufficient taxable income to realize these assets in the future. The table below presents significant components of our deferred tax assets and liabilities at December 31, 2025 and 2024.

 

		2025				2024
Deferred tax assets:
Net operating loss carryforward		$	35,197,253			$	30,374,640
Research and development tax credit carryforward			6,709,611				5,506,154
Stock-based compensation expense			965,107				676,250
Accrued expenses			47,212				256,540
Total deferred tax assets			42,919,183				36,813,584
Deferred tax liabilities
Depreciation			18,298				29,812
Net deferred tax assets			42,900,885				36,783,772
Valuation allowance			(42,900,885	)			(36,783,772	)
Net deferred tax asset after reduction for valuation allowance		$	0			$	0

 

A reconciliation of the U.S. federal income tax rate to the Company’s effective tax rate is as follows:

 

		2025				2024
U.S. federal statutory rate applied to pretax loss			21.0	%			21.0	%
State income tax (benefit)			4.0				4.0
Permanent differences			(0.0	)			(0.0	)
NOL carryforward expiration			(2.5	)			(4.1	)
R&D tax credits, net of expiration			5.7				6.5
Change in valuation allowance and other adjustments			(28.2	)			(27.4	)
Effective tax rate			0.0	%			0.0	%