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INCOME TAX
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
INCOME TAX

NOTE 11 – INCOME TAX

 

  A. Measurement of results for tax purposes under the Israeli Income Tax (Inflationary Adjustments) Law, 1985 (the “Inflationary Adjustment Law”)
     
   

Commencing January 1, 2008, the results of operations of Integrity Israel for tax purposes have been measured on a nominal basis.

     
  B. Tax assessments
     
    For federal, state and local income tax purposes the Company remains open for examination by the tax authorities for the tax years from 2019 through 2022 under the general statute of limitations.
     
    Notwithstanding, pursuant and subject to the provisions of article 145 of the Income Tax Ordinance, Integrity Israel’s tax returns that were filed with the tax authority up to and including 2018 are considered final.
     
  C. Loss for the years ended December 31, 2024 and 2023 consists of the following:

 

   2024   2023 
  

Year ended

December 31

 
   2024   2023 
Domestic  $22,502   $6,945 
Foreign entity (Integrity Israel)   95    152 
 Total loss for the year   22,597    7,097 

 

  D. Net Operating Losses (NOL) carryforward
     
    As of December 31, 2024, the Company had cumulative Net Operating Losses (NOL) carry forward for US federal purposes of approximately $31.6 million to offset against future taxable income for an indefinite period of time. Integrity Israel has cumulative NOL carry forward for Israeli income tax purposes of approximately $38.5 million to offset against future taxable income for an indefinite period of time.
     
  E. For the years ended December 31, 2024 and 2023, the main reconciling item is the recognition of valuation allowance in respect of deferred taxes relating to accumulated net operating losses carried forward and other permanent and temporary differences due to the uncertainty of the realization of such deferred taxes.

 

 

 

  F. Deferred taxes result principally from temporary differences in the recognition of certain revenue and expense items for financial and income tax reporting purposes. Significant components of the Company’s future tax assets are as follows:

         
  

As of

December 31

 
Composition of deferred tax assets:  2024   2023 
Vacation accrual   208    66 
Research and development credits   3,276    1,033 
Net operating losses carry forwards   16,981    12,368 
Net deferred tax asset before deferred tax liabilities and valuation allowance   20,465    13,467 
           
Valuation allowance   (20,465)   (13,467)
Net deferred tax assets   -    -