Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025


	Year Ended December 31,
	2025		2024
Domestic	$	32,032	$	(19,411)
Foreign		(217)		(68)
Income (loss) before income taxes	$	31,815	$	(19,479)


		Year Ended December 31,
		2025			2024
Current:
Federal		$	—		$	—
State			—			—
Foreign			—			—
Total current tax expense (benefit)		$	—		$	—

Deferred:
Federal		$	—		$	(5,483)
State			—			(175)
Foreign			103			—
Total deferred tax expense (benefit)		$	103		$	(5,658)


	Year Ended December 31, 2025
	Amount		Percent
U.S. federal statutory tax rate	$	6,681	21	%
State and local income taxes, net of federal income tax effect		—	—	%
Foreign tax effects		103	—	%
Effect of cross-border tax laws		—	—	%
Effect of changes in tax laws or rates enacted in the current period:
Tax credits		—	—	%
Changes in Valuation Allowances		(2,538)	(8)	%
Nontaxable or nondeductible items:
Stock based compensation		(584)	(2)	%
Nondeductible executive compensation		735	2	%
Bargain purchase gain		(4,457)	(14)	%
Other permanent differences		163	1	%
Changes in unrecognized tax benefits		—	—	%
Effective tax rate	$	103	—	%


		Year Ended December 31,
		2024
Federal tax at statutory rate		21	%
Stock compensation and other permanent differences		(2)	%
Nondeductible executive compensation		(2)	%
Bargain purchase gain		20	%
Tax benefit related to Pulmokine acquisition		29	%
Valuation allowance		(37)	%
Total		29	%


Federal	$	277
State		—
Foreign		—
Total cash paid for income taxes, net of refunds	$	277


		December 31,
		2025			2024
Capitalized research and development expenses		$	80,267		$	22,663
Net operating loss carryforwards			42,946			36,675
Research and development and other tax credit carryforwards			13,176			13,176
Stock compensation			4,930			5,577
Unearned revenue			960			1,250
Royalty receivable			10,931			10,717
Lease liabilities			4,850			201
Intangible Asset			6,603			—
Other			658			585
Subtotal			165,321			90,844
Less: valuation allowance			(159,927)			(85,160)
Total net deferred tax assets			5,394			5,684

Right-of-use assets			(55)			(69)
Intangible liability			(5,339)			(5,615)
Total deferred tax liabilities			(5,394)			(5,684)
Net deferred tax liabilities		$	—		$	—


		Year Ended December 31,
		2025			2024
Balance as of January 1		$	5,938		$	5,938
Increase related to current year tax position			—			—
(Decrease) Increase related to prior year tax position			—			—
Balance as of December 31		$	5,938		$	5,938

XOMA Royalty Corp 10-K