Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Pretax losses |
Pretax loss consists of the following:
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|
|
|
Year Ended December 31, |
|
(in thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
United States |
|
$ |
(7,854 |
) |
|
$ |
(25,144 |
) |
|
$ |
(57,779 |
) |
Non-United States |
|
|
(10,322 |
) |
|
|
(871 |
) |
|
|
(6,892 |
) |
Total pretax loss |
|
$ |
(18,176 |
) |
|
$ |
(26,015 |
) |
|
$ |
(64,671 |
) |
|
| Schedule Components of Benefit (Provision) for Income Taxes |
The Company’s components of the benefit (provision) for income taxes are as follows:
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|
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|
|
|
|
Year Ended December 31, |
|
(in thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
Income tax benefit (provision) |
|
|
|
|
|
|
|
|
|
Current: |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
0 |
|
State |
|
|
(381 |
) |
|
|
(582 |
) |
|
|
16 |
|
Foreign |
|
|
(536 |
) |
|
|
(680 |
) |
|
|
479 |
|
Total current |
|
$ |
(917 |
) |
|
$ |
(1,262 |
) |
|
$ |
495 |
|
Deferred: |
|
|
|
|
|
|
|
|
|
Federal |
|
|
(109 |
) |
|
|
(79 |
) |
|
|
(579 |
) |
State |
|
|
(111 |
) |
|
|
273 |
|
|
|
84 |
|
Foreign |
|
|
(29 |
) |
|
|
53 |
|
|
|
0 |
|
Total deferred |
|
|
(249 |
) |
|
|
247 |
|
|
|
(495 |
) |
Total benefit (provision) |
|
$ |
(1,166 |
) |
|
$ |
(1,015 |
) |
|
$ |
0 |
|
Total Federal |
|
$ |
(109 |
) |
|
$ |
(79 |
) |
|
$ |
(579 |
) |
Total State |
|
$ |
(492 |
) |
|
$ |
(309 |
) |
|
$ |
100 |
|
Total Foreign |
|
$ |
(565 |
) |
|
$ |
(627 |
) |
|
$ |
479 |
|
|
| Schedule of Effective Income Tax Rate Reconciliation |
Below is a tabular rate reconciliation pursuant to the disclosure requirement of ASU 2023-09 for the year ended December 31, 2025, 2024, and 2023:
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Year ended December 31, 2025 |
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|
Year ended December 31, 2024 |
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|
Year ended December 31, 2023 |
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|
(in thousands) |
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Loss before provision for income taxes |
|
$ |
(18,176 |
) |
|
|
100.00 |
|
% |
$ |
(26,015 |
) |
|
|
100.00 |
|
% |
$ |
(64,671 |
) |
|
|
100.00 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US Federal Statutory Tax Rate |
|
|
(3,817 |
) |
|
|
21.00 |
|
|
|
(5,463 |
) |
|
|
21.00 |
|
|
|
(13,581 |
) |
|
|
21.00 |
|
|
State & Local Income Taxes(1) |
|
|
184 |
|
|
|
(1.01 |
) |
|
|
(197 |
) |
|
|
0.76 |
|
|
|
16 |
|
|
|
(0.02 |
) |
|
Foreign Tax Effects |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Disallowed Stock Compensation |
|
|
569 |
|
|
|
(3.13 |
) |
|
|
872 |
|
|
|
(3.35 |
) |
|
|
842 |
|
|
|
(1.30 |
) |
|
Statutory Tax Rate Difference |
|
|
(530 |
) |
|
|
2.91 |
|
|
|
373 |
|
|
|
(1.43 |
) |
|
|
0 |
|
|
|
0.00 |
|
|
Return to Provision Adjustment |
|
|
0 |
|
|
|
0.00 |
|
|
|
378 |
|
|
|
(1.45 |
) |
|
|
0 |
|
|
|
0.00 |
|
|
Change in Valuation Allowance |
|
|
1,496 |
|
|
|
(8.23 |
) |
|
|
(2,769 |
) |
|
|
10.64 |
|
|
|
(1,770 |
) |
|
|
2.74 |
|
|
R&D Tax Credit |
|
|
(297 |
) |
|
|
1.63 |
|
|
|
0 |
|
|
|
0.00 |
|
|
|
1,246 |
|
|
|
(1.93 |
) |
|
Other |
|
|
122 |
|
|
|
(0.67 |
) |
|
|
400 |
|
|
|
(1.54 |
) |
|
|
(172 |
) |
|
|
0.27 |
|
|
United Kingdom |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Valuation Allowance |
|
|
1,421 |
|
|
|
(7.82 |
) |
|
|
1,444 |
|
|
|
(5.55 |
) |
|
|
2,067 |
|
|
|
(3.20 |
) |
|
Foreign Rate Differential |
|
|
(231 |
) |
|
|
1.27 |
|
|
|
0 |
|
|
|
0.00 |
|
|
|
0 |
|
|
|
0.00 |
|
|
Other |
|
|
49 |
|
|
|
(0.27 |
) |
|
|
(196 |
) |
|
|
0.75 |
|
|
|
(303 |
) |
|
|
0.47 |
|
|
Other Foreign Jurisdictions |
|
|
118 |
|
|
|
(0.65 |
) |
|
|
335 |
|
|
|
(1.29 |
) |
|
|
34 |
|
|
|
(0.05 |
) |
|
Effects of Changes in Tax Law |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effects of Cross-Border Tax Laws |
|
|
64 |
|
|
|
(0.35 |
) |
|
|
387 |
|
|
|
(1.49 |
) |
|
|
31 |
|
|
|
(0.05 |
) |
|
Tax Credits - R&D |
|
|
(826 |
) |
|
|
4.54 |
|
|
|
(1,966 |
) |
|
|
7.56 |
|
|
|
(2,841 |
) |
|
|
4.39 |
|
|
Changes in Valuation Allowances |
|
|
(924 |
) |
|
|
5.09 |
|
|
|
(10,474 |
) |
|
|
40.28 |
|
|
|
11,329 |
|
|
|
(17.51 |
) |
|
Nontaxable or Nondeductible Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Officer's Compensation |
|
|
482 |
|
|
|
(2.65 |
) |
|
|
412 |
|
|
|
(1.58 |
) |
|
|
684 |
|
|
|
(1.06 |
) |
|
Share-Based Payments |
|
|
2,340 |
|
|
|
(12.87 |
) |
|
|
4,359 |
|
|
|
(16.76 |
) |
|
|
4,042 |
|
|
|
(6.25 |
) |
|
Effects of Debt Exchange |
|
|
0 |
|
|
|
0.00 |
|
|
|
1,667 |
|
|
|
(6.41 |
) |
|
|
0 |
|
|
|
0.00 |
|
|
Other |
|
|
275 |
|
|
|
(1.51 |
) |
|
|
400 |
|
|
|
(1.54 |
) |
|
|
198 |
|
|
|
(0.31 |
) |
|
Changes in Unrecognized Tax Benefits |
|
|
167 |
|
|
|
(0.92 |
) |
|
|
8,761 |
|
|
|
(33.69 |
) |
|
|
0 |
|
|
|
0.00 |
|
|
Business Combination Impact |
|
|
0 |
|
|
|
0.00 |
|
|
|
0 |
|
|
|
0.00 |
|
|
|
(785 |
) |
|
|
1.21 |
|
|
Other - Return to Provision Adjustment and True-Ups |
|
|
(389 |
) |
|
|
2.14 |
|
|
|
1,515 |
|
|
|
(5.82 |
) |
|
|
(1,920 |
) |
|
|
2.97 |
|
|
Imputed Interest |
|
|
893 |
|
|
|
(4.91 |
) |
|
|
777 |
|
|
|
(2.99 |
) |
|
|
883 |
|
|
|
(1.37 |
) |
|
Effective tax rate |
|
$ |
1,166 |
|
|
|
(6.41 |
) |
% |
$ |
1,015 |
|
|
|
(3.90 |
) |
% |
$ |
0 |
|
|
|
0.00 |
|
% |
(1) The states that contribute to the majority (greater than 50 percent) of the tax effect on this category include California and Texas for fiscal year 2025 and 2024. For fiscal year 2023, Texas is the only state that contributed to the majority of the tax effect on this category.
|
| Schedule of Income Taxes Paid Net of Refunds |
Income taxes paid, net of refunds, during the year ended December 31, 2025, 2024, and 2023 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
(in thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
Jurisdiction: |
|
|
|
|
|
|
|
|
|
United States - Federal |
|
$ |
30 |
|
|
$ |
0 |
|
|
$ |
0 |
|
United States - State and Local |
|
|
224 |
|
|
|
48 |
|
|
|
28 |
|
Ireland |
|
|
0 |
|
|
|
0 |
|
|
|
61 |
|
Mexico |
|
|
166 |
|
|
|
157 |
|
|
|
310 |
|
Poland |
|
|
68 |
|
|
|
0 |
|
|
|
0 |
|
Spain |
|
|
45 |
|
|
|
0 |
|
|
|
0 |
|
Ukraine |
|
|
62 |
|
|
|
72 |
|
|
|
87 |
|
United Kingdom |
|
|
126 |
|
|
|
100 |
|
|
|
83 |
|
All Other Foreign Jurisdictions |
|
|
54 |
|
|
|
4 |
|
|
|
14 |
|
Total Income Taxes Paid |
|
$ |
775 |
|
|
$ |
381 |
|
|
$ |
583 |
|
|
| Significant Components of Deferred Taxes |
Significant components of the Company’s deferred tax assets and liabilities are as follows:
|
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|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
(in thousands) |
|
2025 |
|
|
2024 |
|
Deferred tax assets: |
|
|
|
|
|
|
Net operating loss and credit carryforwards |
|
$ |
93,868 |
|
|
$ |
86,433 |
|
Accrued compensation |
|
|
1,335 |
|
|
|
1,613 |
|
Allowance for credit losses |
|
|
1,008 |
|
|
|
709 |
|
Capitalized research and experimental costs |
|
|
21,785 |
|
|
|
24,699 |
|
Deferred lease liabilities |
|
|
2,008 |
|
|
|
1,100 |
|
Deferred revenue |
|
|
32 |
|
|
|
106 |
|
Depreciation and amortization |
|
|
20,629 |
|
|
|
20,871 |
|
Stock-based compensation |
|
|
3,503 |
|
|
|
3,854 |
|
Debt related items |
|
|
3,434 |
|
|
|
4470 |
|
Other |
|
|
85 |
|
|
|
108 |
|
Gross deferred tax assets |
|
$ |
147,687 |
|
|
$ |
143,963 |
|
Valuation allowance |
|
|
(139,958 |
) |
|
|
(136,536 |
) |
Deferred tax liabilities: |
|
|
|
|
|
|
Deferred commissions |
|
|
(2,042 |
) |
|
|
(3,018 |
) |
Right-of-use assets |
|
|
(1,661 |
) |
|
|
(565 |
) |
Goodwill |
|
|
(2,906 |
) |
|
|
(2,275 |
) |
Prepaid expenses |
|
|
(2,008 |
) |
|
|
(2,016 |
) |
Other |
|
|
(75 |
) |
|
|
(267 |
) |
Gross deferred tax liabilities |
|
$ |
(8,692 |
) |
|
$ |
(8,141 |
) |
Net deferred tax liabilities |
|
$ |
(963 |
) |
|
$ |
(714 |
) |
|
| Schedule of Liability for Unrecognized Tax Benefits |
A reconciliation of the Company's liability for unrecognized tax benefits is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
(in thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
Balance, beginning of year |
|
$ |
9,766 |
|
|
$ |
396 |
|
|
$ |
396 |
|
Increase for tax positions related to the current year |
|
|
573 |
|
|
|
797 |
|
|
|
0 |
|
Increase for tax positions related to the prior years |
|
|
0 |
|
|
|
8,573 |
|
|
|
0 |
|
Decrease for tax positions related to prior years |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Balance, end of year |
|
$ |
10,339 |
|
|
$ |
9,766 |
|
|
$ |
396 |
|
|