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, 2025

for the years ended December 31, 2025 and 2024 were attributed to the following jurisdictions (in thousands):


	For the years ended December 31,
	2025			2024
Domestic operations	$	(582	)	$	(2,141	)
Foreign operations		(367	)		(261	)
Total	$	(949	)	$	(2,402	)

Components of Income Tax Expenses

The income tax expense for the years ended December 31, 2025 and 2024 was comprised of the following (in thousands):


	For the years ended December 31,
	2025		2024
Current:
Federal	$	—	$	—
State		6		7
Foreign		—		—
Total current tax expense		6		7
Deferred:
Federal		3		4
State		—		—
Foreign		—		(19	)
Total deferred tax expense (benefit)		3		(15	)
Income tax expense (benefit)	$	9	$	(8	)

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the expected income tax expense at the federal statutory rate of 21% for the year ended December 31, 2025 and the income tax expense reported in the consolidated financial statements is as follows:



	For the year ended December 31, 2025
	Amount			% of pretax income (loss)
	(in thousands)
Net loss before taxes	$	(949	)
U.S. federal statutory tax rate	$	(199	)		21.0	%
State and local income taxes, net of federal income tax effect*		6			(0.6	)%
Foreign tax effects
Poland
Foreign rate differential		7			(0.7	)%
Changes in valuation allowance		30			(3.2	)%
Prior period adjustments		40			(4.2	)%
Non-taxable or non-deductible items
Stock-based compensation		93			(9.8	)%
Other adjustments		3			(0.3	)%
Other
Prior period adjustments		29			(3.1	)%
Income tax expense	$	9			(0.9	)%

* State taxes in Texas 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 effective income tax rate differs from the statutory federal income tax rate as follows:


	For the year ended December 31, 2024
	% of pretax income (loss)

Federal tax expense		21.0	%
State taxes, net of federal benefit		5.8	%
Other permanent differences		0.8	%
Stock-based compensation		(168.4	)%
NOL adjustments and other true-ups		0.9	%
Other permanent differences		(1.0	)%
Decrease in valuation allowance		141.2	%
		0.3	%

Schedule of Cash Flow, Supplemental Disclosures

The amount of cash taxes paid by the Company are as follows (in thousands):


	For the year ended December 31, 2025

Federal	$	—
State		8
Foreign		—
Cash taxes, net of amounts refunded	$	8

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, 2025 and 2024 (in thousands):


	December 31,
	2025			2024
Deferred tax assets:
Net operating loss carryforwards	$	11,718		$	11,337
Business credit carryforwards		930			930
Intangible assets		142			281
Stock-based compensation		72			101
Change to inventory		43			47
Operating lease liabilities		75			16
Accruals and reserves		452			656
Other		62			301
		13,494			13,669
Deferred tax liabilities:
Operating lease assets		(75	)		(14	)
Property and equipment		(11	)		(28	)
		(86	)		(42	)
Valuation allowance		(13,415	)		(13,631	)
Net deferred tax liabilities	$	(7	)	$	(4	)

Schedule of Unrecognized Tax Benefits

A reconciliation of the Company's unrecognized tax benefits for the years ended December 31, 2025 and 2024 is provided in the following table (in thousands):


	2025		2024
Balance as of January 1:	$	168	$	170
Increase in current year positions		—		—
Increase in prior year positions		—		—
Decrease in prior year positions		—		(2	)
Balance as of December 31:	$	168	$	168