Company: LBRX
Filing Date: 2025-08-22
Form Type: S-1
Source: 0001193125-25-186467
Chunk: 377

Company: LB PHARMACEUTICALS INC
Filing Date: 2025-08-22
Form: S-1
Chunk 377
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 |   |              |   |
| Depreciable asset basis differences          |                      |   |          (15 | ) |     |   |           (6 | ) |
| Unrealized gain - other comprehensive income |                      |   |          (24 | ) |     |   |          (91 | ) |
| Operating lease right-of-use assets          |                      |   |         (506 | ) |     |   |            — |   |
| Total deferred tax liabilities               |                      |   |         (545 | ) |     |   |          (97 | ) |
| Net deferred tax assets                      |                      | $ |            — |   |     | $ |            — |   |

The Company’s accounting for deferred taxes involves the evaluation of a number of factors concerning the realizability of its net deferred tax assets. The Company primarily considered such factors as its history of operating losses, the nature of the Company’s deferred tax assets, and the timing, likelihood and amount, if any, of future taxable income during the periods in which those temporary differences and carryforwards become deductible. As of December 31, 2024 and 2023, the Company does not believe that it is more likely than not that the deferred tax assets will be realized; accordingly, a full valuation allowance has been established and no deferred tax asset is shown in the Company’s balance sheets. During the years ended December 31, 2024 and 2023, the valuation allowance increased by $11.3 million and $4.0 million, respectively, which primarily relates to the current year operating loss and capitalized research and development expenses. The Company believes that income tax filing positions will be sustained upon examination and does not anticipate any adjustments that would result in a material adverse effect on the Company’s financial position, results of operations or cash flows. Accordingly, the Company has not recorded any reserves, or related accruals or uncertain income tax positions as of December 31, 2024 and 2023. The Company recognizes interest accrued related to unrecognized tax benefits and penalties in income tax expense. The Company has no accruals for interest and penalties as of December 31, 2024 and 2023. The Internal Revenue Code of 1986 contains certain provisions that can limit a taxpayer’s ability to utilize net operating loss (“NOL”) and tax credit carryforwards in any given year resulting from cumulative changes in ownership interests in excess of 50 percent over a three-year period (“ownership change”). In the event