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Income Taxes | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | 11. Income Taxes The reconciliation of federal statutory income tax rate to the Company’s effective income tax rate is as follows:
|  | Year Ended December 31, |
|  | 2024 |  |  | 2023 |
Expected income tax benefit at the federal statutory rate |  |  | 21.0 | % |  |  | 21.0 | %
State and local taxes, net of federal benefit |  |  | 7.7 |  |  |  | 7.6 |
Research and development credit, net |  |  | 5.3 |  |  |  | 6.4 |
Non-deductible items and other |  |  | (1.1 | ) |  |  | (0.5 | )
Change in state and local tax rate |  |  | — |  |  |  | (0.7 | )
Change in valuation allowance |  |  | (32.9 | ) |  |  | (33.8 | )
Total |  |  | 0.0 | % |  |  | 0.0 | %
Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The principal components of the Company’s deferred tax assets and liabilities consisted of the following:
|  | December 31, |
|  | 2024 |  |  | 2023 |
Deferred tax assets: |  |  |  |  |  |
Federal, state and local net operating loss carryforwards |  | $ | 44,369 |  |  | $ | 34,534 |
Capitalized research and development costs |  |  | 36,646 |  |  |  | 19,830 |
Research and development tax credits |  |  | 16,296 |  |  |  | 10,192 |
Stock-based compensation deductions |  |  | 9,919 |  |  |  | 6,066 |
License fee deductions |  |  | 221 |  |  |  | 240 |
Operating lease liabilities |  |  | 4,607 |  |  |  | 1,482 |
Accrued expenses |  |  | 2,603 |  |  |  | 1,665 |
Gross deferred tax assets |  |  | 114,661 |  |  |  | 74,009 |
Less: valuation allowance |  |  | (110,723 | ) |  |  | (72,560 | )
Total deferred tax assets |  |  | 3,938 |  |  |  | 1,449 |
Deferred tax liabilities: |  |  |  |  |  |
Operating lease right-of-use assets |  |  | (3,938 | ) |  |  | (1,449 | )
Net deferred tax assets |  | $ | — |  |  | $ | — |
The Company increased its valuation allowance by $38,163 for the year ended December 31, 2024 in order to maintain a full valuation allowance against its deferred tax assets. Based on the Company’s history of losses, the Company recorded a full valuation allowance against its deferred tax assets as of December 31, 2024. The Company intends to maintain a valuation allowance until sufficient positive evidence exists to support a reversal of the allowance. As of December 31, 2024, the Company had federal, state and local net operating loss carryforwards of $157,448, $181,362 and $88,701, respectively; $157,198 of the federal net operating losses do not expire, and the remaining $250 expire in 2037. The state net operating losses begin to expire in 2037. The local net operating losses begin to expire in 2042. As of December 31, 2024, the Company had federal and state research and development tax credit carryforwards of $15,684 and $612, respectively, which begin to expire in 2038 and 2036, respectively. Under the provisions of Sections 382 and 383 of the Internal Revenue Code of 1986, as amended (the IRC), these net operating losses, credit carryforwards and other tax attributes may be subject to limitation based on previous significant changes in ownership and upon future significant changes in ownership of the Company, as defined by the IRC. The Company files income tax returns in the U.S. federal jurisdiction as well as in Pennsylvania and Philadelphia. The tax years 2023, 2022 and 2021 remain open to examination by the jurisdictions where the Company is subject to tax. The Company evaluates tax positions for recognition using a more-likely-than-not recognition threshold, and those tax positions eligible for recognition are measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon the effective settlement with a taxing authority that has full knowledge of all relevant information. As of December 31, 2024, the Company had no unrecognized income tax benefits that would affect the Company’s effective tax rate if recognized.

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