Dermata Therapeutics, 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

Schedule of Reconciliation Provision for Income Taxes


	Years Ended December 31,
(in thousands)	2025					2024
Income taxes (benefit) at statutory rates	$	(1,587	)	21.00	%	$	(2,580	)	21.00	%
State and local income taxes, net of federal benefit *		(10	)	0.13	%		(14	)	0.11	%
Tax credits
Research and development credits		(158	)	2.09	%		(406	)	3.31	%
Change in valuation allowances		1,690		(22.36	%)		2,509		(20.42	%)
Non-taxable or non-deductible items
Permanent and other differences		1		(0.01	%)		(65	)	0.53	%
Stock-based compensation		15		(0.20	%)		441		(3.59	%)
Changes in unrecognized tax benefits		49		(0.66	%)		115		(0.94	%)
Other, net		-		-			-		-
Income tax expense (benefit)	$	-		-		$	-		-

*	State taxes in California made up the majority (greater than 50%) of the tax effect in this category for the years ended December 31, 2025, and December 31, 2024.

Schedule of Deferred Tax Assets

Significant components of the Company’s net deferred tax assets are as follows:

Schedule of Deferred Tax Assets

(in thousands)	2025			2024
	As of December 31,
(in thousands)	2025			2024
Net operating loss carryforwards	$	6,629		$	4,270
Research and development carryforwards		1,091			942
Capitalized research and development		1,916			2,616
Stock-based compensation expense		25			10
Intangible assets		4			4
Other, net		71			173
Gross deferred tax assets		9,736			8,015
Less: valuation allowance		(9,736	)		(8,015	)
Total deferred tax assets	$	-		$	-

Schedule of Unrecognized Tax Benefits

The following table summarizes the activity related to the Company’s gross unrecognized tax benefits at the beginning and end of the periods presented:

Schedule of Unrecognized Tax Benefits

(in thousands)	2025		2024
	Years Ended December 31,
(in thousands)	2025		2024
Beginning balance of unrecognized tax benefits	$	764	$	645
Additions based on tax positions related to the current year		53		119
Additions for tax positions of prior years		-		-
Reductions for tax positions in prior years		-		-
Ending balance of unrecognized tax benefits	$	817	$	764