Emmaus Life Sciences, Inc. Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Loss from income taxes as of December 31, 2025 are as follows (in thousand):


	2025			2024
Domestic income (loss)	$	(7,473	)	$	(6,497	)
Foreign income (loss)		(10	)		73
Loss before income taxes	$	(7,483	)	$	(6,424	)

Schedule of provision for income taxes

The provision for income taxes consists of the following for the years ended December 31, 2025 and 2024 (in thousands):


	December 31,
	2025		2024
Current
Federal	$	—	$	—
States		8		7
International		1		22
Total current income tax provision		9		29
Deferred
Federal		—		—
States		—		—
International		—		—
Total deferred income tax provision		—		—
Total provision for income tax	$	9	$	29

Schedule of deferred tax assets and liabilities

Deferred tax assets consisted of the following as of December 31, 2025 and 2024 (in thousands):


	December 31,
	2025			2024
Net operating loss carryforward	$	19,916		$	19,478
General business tax credit		12,085			12,154
Stock options		1,104			1,122
Charitable contribution		7			7
Accrued expenses		263			237
Unearned revenue		2,563			2,605
Allowance for bad debt		204			253
Unrealized gain on foreign exchange translation and others		1,286			1,314
Section 174 Expenditures		239			322
Other		2,066			1,772
Total gross deferred tax assets		39,733			39,264
Less valuation allowance		(39,302	)		(38,838	)
Net deferred tax assets	$	431		$	426

Deferred tax liabilities consisted of the following as of December 31, 2025 and 2024 (in thousands):


	2025			2024
Unrealized loss on available-for-sale securities	$	(427	)	$	(427	)
Other		(4	)		1
Total deferred tax liabilities	$	(431	)	$	(426	)

Schedule of income tax provision computed using the statutory federal tax rate

A reconciliation of the U.S. Federal statutory income tax rate to the Company's effective income tax rate is as follows (in thousands for amount):


	December 31, 2025
	Amount			%
Tax benefit at statutory federal rate	$	(1,569	)		21.0	%
State taxes, net of federal tax benefit (1)		8			-0.1	%
Foreign tax effect		1			0.0	%
Nontaxable or Nondeductible items
Disallowed interest expense		132			-1.8	%
Other permanent items		(14	)		0.2	%
Other adjustments
Benefit from state NOL Adjustment		(251	)		3.4	%
Benefit on state taxes		83			-1.1	%
Other adjustments (individually less than 5%)		(100	)		1.3	%
Change in valuation allowance		1,719			-23.0	%
Total income tax provision	$	9			-0.1	%

(1) State taxes in California, Kentucky and New Jersey made up the majority (greater than 50%) of the tax effect in this category.

As previously disclosed for the year ended December 31, 2024 prior to the adoption of ASU 2023-09, the table below is a reconciliation of the components that caused the Company's provision (benefit) for the income taxes to differ from amounts computed using the statutory tax rate of 21 %.


	December 31, 2024
Tax benefit at statutory federal rate	$	(1,351	)
State taxes, net of federal tax benefit		(317	)
Increase in valuation allowance		(4,058	)
Permanent items		(10	)
General business tax credit		(68	)
Stock options deferred true-up		5,674
Other		159
Total income tax provision	$	29

Summary of Income Taxes Paid, Net of Refunds

The following table summarizes he income taxes paid, net of refunds, for the year ended December 31, 2025 (in thousands):


	December 31, 2025
U.S. Federal	$	—
California		6
New Jersey		4
Other states		2
Japan		11
Total income tax paid	$	23