Sintx Technologies, Inc. Income Taxes Disclosure

10. Income Taxes

 

Taxes based on income were as follows:

 Schedule of Tax Based on Income

			2025				2024
			December 31,
			2025				2024
Current:		$	-			$	-
U.S. federal tax			-				-
State taxes		$	-			$	-
Deferred:
U.S. federal tax		$	-			$	-
State tax			-				-
		$	-			$	-
Provision for income taxes		$	-			$	-

 

Deferred taxes reflect the temporary differences between the amounts at which assets and liabilities are recorded for financial reporting purposes and the amounts utilized for tax purposes. The primary components of the temporary differences that gave rise to our deferred tax assets and liabilities were as follows:

 Schedule of Significant Components of Deferred Tax Assets and Liabilities

		2025				2024
		December 31,
		2025				2024
Deferred tax assets:
Net operating loss carryforwards		$	59,358			$	57,763
Stock-based compensation			3,690				3,192
Federal R&D credit			2,120				2,222
Impairment			1,146				1,148
Accrued expenses			-				53
Capitalized research expenses			2,217				3,145
Intangibles			186				237
Right of use asset/liabilities			32				32
Depreciation			243				-
Other			1				15
Total deferred tax assets			68,993				67,807
Deferred tax liabilities:
Depreciation			-				(431	)
Total deferred tax liabilities			-				(431	)
Less valuation allowance			(68,993	)			(67,376	)
Net deferred tax liability		$	-			$	-

 

We assess available positive and negative evidence to estimate if sufficient future taxable income is expected to be generated to use existing deferred tax assets. On the basis of our assessment, we record valuation allowances with respect to the portion of the deferred tax asset that is not more-likely-than-not to be realized. Our assessment of the future realizability of our deferred tax assets relies on our forecasted earnings in certain jurisdictions determined by the manner in which we operate our business and the relevant carryforward period. As a result of all available evidence, the Company believes that it is more likely than not that its net deferred tax assets will not be realized and has established a valuation allowance of $69.0 million and $67.4 million, respectively, against its net deferred tax assets as of December 31, 2025 and December 31, 2024.

 

 

U.S. federal net operating loss carryforwards at December 31, 2025 and December 31, 2024 were $237.9 million and 231.5 million, respectively. U.S. federal tax credit carryforwards at December 31, 2025 and December 31, 2024 totaled $2.1 million and $2.2 million, respectively. If unused, net operating losses and tax credit carryforwards will expire as follows:

 Schedule of Operating Losses and Tax Credit Carryforwards

(in millions)		Operating Losses				Tax Credits
Year of expiry:
2026		$	5.1			$	0.2
2027			11.5				0.2
2028			15.3				0.5
2029			15.9				0.3
2030-2037			114.8				0.9
Indefinite life / no expiry			75.3				0.0
Total		$	237.9			$	2.1

 

State net operating loss carryforwards totaled approximately $237.9 million at December 31, 2025. State net operating losses in certain jurisdictions begin to expire in 2033 and continue through 2045, while net operating losses in other jurisdictions may be carried forward indefinitely.

 

The principal items accounting for the difference between taxes computed at the U.S. federal statutory rate and taxes recorded were as follows (in thousands) after the adoption of ASU 2023-09:

 Schedule of Reconciliation Statutory Federal Income Tax Provision to Actual Income Tax Benefit

		2025				2024
		Year Ended December 31, 2025
		Amount				Percent
U.S. federal statutory tax rate		$	(2,176	)			(21.00	)%
State and local income taxes, net of federal income tax effect			-				0.00	%
Foreign tax effects			-				0.00	%
Effect of changes in tax laws or rates enacted in the current period			-				0.00	%
Effect of cross-border tax laws			-				0.00	%
Tax credits:
Research and development tax credits			102				0.99	%
Changes in valuation allowances			1,617				15.60	%
Nontaxable or nondeductible items:
Change in value – warrants			26				0.25	%
Other			6				0.06	%
Changes in unrecognized tax benefits			-				0.00	%
Other adjustments			425				4.10	%
Effective tax rate		$	-				-

 

The principal items accounting for the difference between taxes computed at the U.S. federal statutory rate and taxes recorded were as follows (in thousands) for the year prior to the adoption of ASU 2023-09:

 

		Year Ended December 31, 2024
Pre-tax book income tax at statutory rate		$	(2,315	)
State taxes, net of federal benefit			(482	)
Return to provision			-
Equity related expenses			(614	)
Deferred adjustments			-
Expiration of R&D credits			-
Change in valuation allowance			3,409
Other			2
Total income tax expense		$	-

 

The following is a reconciliation of the expected statutory federal income tax rate to the actual effective tax rate (in thousands):

 

		2024
		Year Ended December 31, 2024
Federal statutory rate			(21.0	)%
State taxes, net of federal benefit			(4.3	)%
Return to provision			0.0	%
Equity related expenses			(5.6	)%
Deferred adjustments			0.0	%
Expiration of R&D credits			0.0	%
Change in valuation allowance			30.9	%
Total income tax expense			0.0	%

 

Our 2025 provision for income taxes included i) $0.02 million of tax charge for equity related expenses; ii ) $0.42 million of tax charge for certain deferred tax adjustments; iii) $1.62 million of tax charge from changes in valuation allowances; iv) $.10 million tax charge for expiration of R&D credits; and v) $0.006 million of tax charge related to other permanent differences. 

 

Our 2024 provision for income taxes included i) $0.48 million state tax benefit net of federal affect; ii) $0.61 million of tax benefit for equity related expenses; iii) $3.41 million of tax charge from valuation allowances due to the uncertainty of the realization of certain deferred tax assets; and iv) $0.002 million of tax charge related to other permanent differences.

 

 

Income/(loss) before taxes from our U.S. operations was follows:

 Schedule of Income Loss Before Taxes

		2025				2024
U.S.		$	(10,364	)		$	(11,024	)
Foreign			-				-
Income before taxes		$	(10,364	)		$	(11,024	)

 

Our effective tax rate was 0.00% and 0.00% for fiscal years 2025 and 2024, respectively.

 

The Company files income tax returns in the U.S. federal and certain state jurisdictions. During the periods ended December 31, 2025 and December 31, 2024, the Company has not recorded a liability for uncertain income tax positions or any related interest or penalties. As such, our unrecognized tax benefits for 2025 and 2024 totaled $0.00 million and $0.00 million, respectively. With limited exceptions, we are no longer subject to income tax examinations by tax authorities for years prior to 2021.

 

The amount of income taxes paid (net of refunds received) were as follows (in thousands):

 

Schedule of Income Taxes Paid

		Year Ended December 31, 2025
Federal		$	-
State and local			-
Foreign			-
Total income taxes paid (net of refunds received)		$	-

 

Amounts represent taxes paid during 2025 based on the company’s tax provision. The 2025 income tax returns have not been filed. For the years ended December 31, 2024 and 2023, gross income taxes paid (in thousands) were $0 and $0, respectively.