Cabaletta Bio, Inc. Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

The reconciliation of federal statutory income tax rate to the Company’s effective income tax rate is as follows:


	Year Ended December 31,
	2024			2023
Expected income tax benefit at the federal statutory rate		21.0	%		21.0	%
State and local taxes, net of federal benefit		7.7			7.6
Research and development credit, net		5.3			6.4
Non-deductible items and other		(1.1	)		(0.5	)
Change in state and local tax rate		—			(0.7	)
Change in valuation allowance		(32.9	)		(33.8	)
Total		0.0	%		0.0	%

The principal components of the Company’s deferred tax assets and liabilities consisted of the following:


	December 31,
	2024			2023
Deferred tax assets:
Federal, state and local net operating loss carryforwards	$	44,369		$	34,534
Capitalized research and development costs		36,646			19,830
Research and development tax credits		16,296			10,192
Stock-based compensation deductions		9,919			6,066
License fee deductions		221			240
Operating lease liabilities		4,607			1,482
Accrued expenses		2,603			1,665
Gross deferred tax assets		114,661			74,009
Less: valuation allowance		(110,723	)		(72,560	)
Total deferred tax assets		3,938			1,449
Deferred tax liabilities:
Operating lease right-of-use assets		(3,938	)		(1,449	)
Net deferred tax assets	$	—		$	—