Cabaletta Bio, 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

Reconciliation of Federal Statutory Income Tax Rate to Company's Effective Income Tax Rate

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


	Year Ended December 31,
	2025					2024
U.S. Statutory Tax Rate	$	(35,304	)	21.0	%	$	(24,331	)	21.0	%
State and Local Income Taxes, Net of Federal Income Tax Effect (1)		—		0.0	%		—		0.0	%
Foreign Tax Effects		24		0.0	%		(4	)	0.0	%
Effect of Cross-Border Tax Laws		94		-0.1	%		6		0.0	%
Tax Credits		(9,489	)	5.6	%		(5,769	)	5.0	%
Change in Valuation Allowances (Domestic)		43,489		-25.9	%		29,176		-25.2	%
Nontaxable or Nondeductible Items		983		-0.6	%		951		-0.8	%
Other Adjustments		203		0.0	%		(29	)	0.0	%
Actual income tax benefit effective tax rate	$	—		0.0	%	$	—		0.0	%

(1) Within the State Income Tax category, Pennsylvania and Philadelphia accounted for the majority, representing over 50% of the total reconciling impact.

Summary of Principal Components of Company's Deferred Tax Assets

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


	Year Ended December 31,
	2025			2024
Deferred tax assets:
Federal, state and local net operating loss carryforwards	$	83,014		$	44,369
Capitalized research and development costs		31,333			36,646
Research and development tax credits		25,050			16,296
Stock-based compensation deductions		13,299			9,919
License fee deductions		186			221
Operating lease liabilities		7,357			4,607
Accrued expenses		2,805			2,603
Gross deferred tax assets		163,044			114,661
Less: valuation allowance		(157,850	)		(110,723	)
Total deferred tax assets		5,194			3,938
Deferred tax liabilities:
Operating lease right-of-use assets		(5,194	)		(3,938	)
Net deferred tax assets	$	—		$	—