Company: IOBT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0000950170-25-047744
Chunk: 305

Company: IO Biotech, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 305
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 likely than not that a position will be sustained, none of the benefit attributable to the position is recognized. The tax benefit to be recognized for any tax position that meets the more likely than not recognition threshold is calculated as the largest amount that is more than 50%. We have reviewed the tax positions taken, or to be taken, in our tax returns for all tax years currently open to examination by the Danish Tax Authority and Internal Revenue Service (“IRS”). As of December 31, 2024 and 2023, we have not recorded an uncertain tax position liability. Tax filings in Denmark and the United States remain subject to examination by the Danish Tax Authority and the IRS, respectively. As of December 31, 2024, tax years 2021 and forward were generally open to examination by the Danish Tax Authority. As of December 31, 2024, tax years 2021 and forward of IO Bio US, Inc and IO Biotech, Inc were generally open to examination by the IRS.Tax CreditsWe elected to claim a research and development tax credit on the federal income tax return filed for the year ended December 31, 2023 and plan to continue to make this election on the federal income tax return filed for the year ended December 31, 2024 based on law currently enacted. We will continue to monitor impacts of proposed or enacted law changes on the cost to benefit of making this election. The Company included $0.7 million and $1.0 million in research and development tax credits in the U.S. provision for income taxes for the year ended December 31, 2024 and 2023, respectively. Other Tax Matters The Company recognizes accrued interest related to unrecognized tax benefits and penalties as income tax expense in the statements of operations. The Company does not have any material unrecognized tax benefits which would affect the effective tax rate, if recognized. The Company does not have any unrecognized tax benefits which would reverse within the next twelve months. The Company is eligible for the Danish enhanced research and development tax allowance, providing for an increase in the deductible value of the amount of certain R&D expenditures. For 2019, the deduction is set at 101.5%. Furthermore, the deduction for R&D expenditures is set at 130% for 2020 through 2022, 108% for 2023 through 2025, and 114% for 2026. The tax allowance is reported as a reduction to research and development expense in the statements of operations. For the years ended December