CV 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, 2024

For the years ended December 31, 2024 and 2023, pretax income (loss) was attributable to the following jurisdictions (in thousands):


	For the years ended December 31,
	2024			2023
Domestic operations	$	(2,141	)	$	3,114
Foreign operations		(261	)		(18	)
Total	$	(2,402	)	$	3,096

Components of Income Tax Benefit

The income tax benefit for the years ended December 31, 2024 and 2023 was comprised of the following (in thousands):


	For the years ended December 31,
	2024			2023
Current:
Federal	$	—		$	—
State		7			8
Foreign		—			—
Total current tax expense		7			8
Deferred:
Federal		4			(11	)
State		—			—
Foreign		(19	)		(3	)
Total deferred tax benefit		(15	)		(14	)
Income tax benefit	$	(8	)	$	(6	)

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the expected income tax benefit at the federal statutory rate of 21% for the years ended December 31, 2024 and 2023, and the income tax benefit reported in the consolidated financial statements is as follows:


	For the years ended December 31,
	2024						2023
	Amount			% of pretax income (loss)			Amount			% of pretax income (loss)
	(in thousands)						(in thousands)
Income tax expense (benefit) at federal statutory rate	$	(505	)		21.0	%	$	651			21.0	%
State taxes, net of federal effect		(141	)		5.8	%		182			5.9
Other permanent differences		(19	)		0.8	%		33			1.1
Stock-based compensation		4,047			(168.4	)%		420			13.5
NOL adjustments and other true-ups		(22	)		0.9	%		(640	)		(20.6	)
Other		24			(1.0	)%		8			0.2
Decrease in valuation allowance		(3,392	)		141.2	%		(660	)		(21.3	)
Income tax benefit	$	(8	)		0.3	%	$	(6	)		(0.2	)%

Schedule of Deferred Tax Assets And Liabilities

The following table summarizes the significant components of the Company's deferred tax assets and liabilities as of December 31, 2024 and 2023 (in thousands):


	December 31,
	2024			2023
Deferred tax assets:
Net operating loss carryforwards	$	11,337		$	10,804
Business credit carryforwards		930			939
Intangible assets		281			413
Stock-based compensation		101			4,075
Change to inventory		47			52
Operating lease liabilities		16			51
Accruals and reserves		656			565
Other		301			247
		13,669			17,146
Deferred tax liabilities:
Operating lease assets		(14	)		(45	)
Property and equipment		(28	)		(97	)
		(42	)		(142	)
Valuation allowance		(13,631	)		(17,023	)
Net deferred tax liabilities	$	(4	)	$	(19	)

Schedule of Unrecognized Tax Benefits

A reconciliation of the Company's unrecognized tax benefits for the years ended December 31, 2024 and 2023 is provided in the following table (in thousands):


	2024			2023
Balance as of January 1:	$	170		$	172
Increase in current year positions		—			—
Increase in prior year positions		—			—
Decrease in prior year positions		(2	)		(2	)
Balance as of December 31:	$	168		$	170