Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Domestic and International Pre-Tax Loss

Domestic and international pre-tax loss consists of the following:

	December 31,
	2025			2024 Restated
United States		(23,469,273	)		(33,335,579	)
International		-			-
Loss before income taxes		(23,469,273	)		(33,335,579	)

Schedule of Federal Statutory Income Tax Rate

Income tax expense differed from the amount computed by applying the federal statutory income tax rate of 21% to pretax income for the years ended December 31, 2025 and 2024 as a result of the following:

	December 31, 2025
	Amount			Percent
US Federal Statutory Tax Rate	$	(4,928,547	)		21.00	%
State and Local Income Taxes (1)		(211,513	)		0.90
Foreign Tax Effects		-			0.00
Tax Credits		(1,010,247	)		4.30
Change in Valuation Allowance		4,421,241			(18.84	)
Nontaxable or Nondeductible Items
Section 162m Limitation		262,808			(1.12	)
Warrant Revaluation		248,946			(1.06	)
Other permanent differences		236,687			(1.01	)
Change in unrecognized tax benefits		303,074			(1.29	)
Other Reconciling Items
Deferred True Up		622,366			(2.65	)
Other		55,184			(0.24	)
Total	$	-			0.00	%

(1)	For the year ended December 31, 2025, state and local income taxes in California made up the majority (greater than 50 percent) of the tax effect in this category.

	December 31, 2024
Federal tax at statutory rate	$	(6,142,980	)
State income taxes		(218,456	)
Stock based compensation		180,319
Foreign taxes		-
Tax credits		(1,039,015	)
Nondeductible items		26,970
Valuation allowance		5,327,801
Deferred true up		1,165,581
Rate change		717,809
Other items		(18,029	)
Total	$	-

Schedule of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities as of December 31, 2025 and 2024 are as following:

	December 31,
	2025			2024
Deferred tax assets:
Net operating loss carryforwards	$	41,820,615		$	36,178,997
Research and development credits		7,713,764			7,006,591
Intangibles		616,331			880,481
Fixed assets		(365,067	)		(181,103	)
Stock based compensation		27,813			452,339
Accruals and reserves		441,240			281,367
Deferred revenue		155,914			21,751
Lease liability		1,491,200			69,025
Capitalized research costs		3,761,293			5,280,797
Other		223			8,639
Gross deferred tax assets		55,663,326			49,998,884
Valuation allowance		(54,355,211	)		(49,934,084	)
Total deferred tax assets		1,308,115			64,800
Deferred tax liabilities:
Right of use asset		(1,308,115	)		(64,800	)
Deferred project costs					-
Total deferred tax liabilities		(1,308,115	)		(64,800	)
Net deferred tax assets	$	-			-

Schedule of Gross Unrecognized Tax Benefits

The following table reflects changes in gross unrecognized tax benefits:

	December 31,
	2025		2024
Balance at beginning of year	$	3,002,825	$	2,545,189
Increase in balance related to tax positions taken during the current year		303,074		445,293
Increase in balance related to tax positions taken during prior years		-		12,343
Decrease in balance related to prior year tax positions		-		-
Decrease in balance related to settlement with tax authorities		-		-
Balance at end of year	$	3,305,899	$	3,002,825

Cyngn Inc. 10-K