Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Summary of Reconciliation of (Loss) Income Before Income Taxes for Domestic and Foreign Locations |
A reconciliation of (loss) income before income taxes for domestic and foreign locations is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, |
|
(In thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
United States |
|
$ |
(65,783 |
) |
|
$ |
(80,945 |
) |
|
$ |
(27,890 |
) |
Foreign |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total (loss) income before income taxes |
|
$ |
(65,783 |
) |
|
$ |
(80,945 |
) |
|
$ |
(27,890 |
) |
|
| Summary of Reconciliation of Income Tax (Benefit) Expense |
A reconciliation of income tax (benefit) expense for the years ended December 31, 2025, 2024 and 2023 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, |
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
Current: |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
— |
|
|
$ |
(11 |
) |
|
$ |
1,246 |
|
State |
|
|
— |
|
|
|
7 |
|
|
|
589 |
|
Foreign |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total current income tax (benefit) expense |
|
$ |
— |
|
|
$ |
(4 |
) |
|
$ |
1,835 |
|
|
|
|
|
|
|
|
|
|
|
Deferred: |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
State |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Foreign |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total deferred income tax expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total income tax (benefit) expense |
|
$ |
— |
|
|
$ |
(4 |
) |
|
$ |
1,835 |
|
|
| Reconciliation of Federal Statutory Income Tax Rate to Company's Effective Income Tax Rate |
The table below provides the updated requirements of ASU No. 2023-09, Improvements to Income Tax Disclosures (“ASU 2023-09”) for 2025. The effective income tax rate for the years ended December 31, 2025 differs from the statutory federal income tax rate as follows (in thousands, except percentages):
|
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|
|
|
|
|
|
|
|
|
For the Year Ended December 31, |
|
|
|
2025 |
|
|
|
$ |
|
|
% |
|
U.S. federal statutory rate |
|
$ |
(13,814 |
) |
|
|
21.0 |
% |
State and local income taxes, net of federal income tax effect (1) |
|
|
(69 |
) |
|
|
0.1 |
% |
Effects of cross-border tax laws - Global intangible low-tax income |
|
|
4,501 |
|
|
|
(6.8 |
%) |
Tax credits - research and development credits |
|
|
(1,587 |
) |
|
|
2.4 |
% |
Changes in valuation allowance |
|
|
6,189 |
|
|
|
(9.4 |
%) |
Nontaxable or nondeductible items: |
|
|
|
|
|
|
Stock-based compensation |
|
|
2,946 |
|
|
|
(4.5 |
%) |
Limitations on the deductibility of officer compensation |
|
|
1,533 |
|
|
|
(2.3 |
%) |
Other |
|
|
137 |
|
|
|
(0.2 |
%) |
Changes in unrecognized tax benefits |
|
|
143 |
|
|
|
(0.4 |
%) |
Other |
|
|
21 |
|
|
|
0.1 |
% |
Provision for income taxes |
|
$ |
— |
|
|
|
0.0 |
% |
(1) State tax expense in the State of California comprises the majority (greater than 50 percent) of the tax effect in this category. As previously disclosed for the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023‑09, the Company’s effective income tax rate differed from the statutory federal income tax rate as follows:
|
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|
|
|
|
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|
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|
For the Year Ended December 31, |
|
|
|
2024 |
|
|
2023 |
|
Federal statutory income tax rate |
|
|
21.0 |
% |
|
|
21.0 |
% |
State income taxes, net of federal benefit |
|
|
1.9 |
% |
|
|
1.9 |
% |
Share-based compensation |
|
|
(1.9 |
%) |
|
|
(2.5 |
%) |
Officers compensation |
|
|
(3.4 |
%) |
|
|
(7.4 |
%) |
Research and development credits |
|
|
24.0 |
% |
|
|
20.0 |
% |
Uncertain tax positions |
|
|
(3.7 |
%) |
|
|
(2.4 |
%) |
Change in tax rate |
|
|
(1.4 |
%) |
|
|
0.2 |
% |
Change in valuation allowance |
|
|
(36.1 |
%) |
|
|
(36.5 |
%) |
Other |
|
|
(0.2 |
%) |
|
|
(0.3 |
%) |
Permanent differences |
|
|
(0.2 |
%) |
|
|
(0.7 |
%) |
Provision for income taxes |
|
|
0.0 |
% |
|
|
(6.7 |
%) |
|
| Significant Components of Deferred Income Taxes |
The significant components of deferred income taxes are as follows:
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
(in thousands) |
|
2025 |
|
|
2024 |
|
Deferred tax assets: |
|
|
|
|
|
|
Net operating loss |
|
$ |
38,566 |
|
|
$ |
25,413 |
|
Tax credits |
|
|
30,219 |
|
|
|
27,472 |
|
Accrued liabilities |
|
|
689 |
|
|
|
2,966 |
|
Deferred revenue |
|
|
2,808 |
|
|
|
5,515 |
|
Basis difference in equity investments |
|
|
2,053 |
|
|
|
2,127 |
|
Capitalized R&D |
|
|
53,549 |
|
|
|
60,104 |
|
Right-of-use lease liability |
|
|
5,578 |
|
|
|
6,601 |
|
Share-based compensation |
|
|
15,232 |
|
|
|
14,872 |
|
Total gross deferred tax assets |
|
|
148,694 |
|
|
|
145,070 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
(462 |
) |
|
|
(858 |
) |
Right-of-use asset |
|
|
(4,704 |
) |
|
|
(6,168 |
) |
Total gross deferred tax liabilities |
|
|
(5,166 |
) |
|
|
(7,026 |
) |
Valuation allowance |
|
|
(143,528 |
) |
|
|
(138,044 |
) |
Net deferred tax asset |
|
$ |
— |
|
|
$ |
— |
|
|
| Summary Of Income Taxes Paid Net of (Refunds) Received |
A summary of income taxes paid, net of (refunds) received, for the year ended December 31, 2025 is as follows:
|
|
|
|
|
|
|
December 31, |
|
(In thousands) |
|
2025 |
|
Federal income taxes paid, net of (refunds) received |
|
$ |
— |
|
State income taxes paid, net of (refunds) received |
|
|
— |
|
Foreign income taxes paid, net of (refunds) received |
|
|
— |
|
Total income taxes paid, net of (refunds) received |
|
$ |
— |
|
|
| Summary of Reconciliation of Unrecognized Tax Benefits |
A reconciliation of unrecognized tax benefits is as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
(in thousands) |
|
2025 |
|
|
2024 |
|
Beginning balance of unrecognized tax benefits |
|
$ |
6,780 |
|
|
$ |
3,587 |
|
(Decrease) Increase for prior period tax positions |
|
|
(763 |
) |
|
|
1,243 |
|
Increase for current period tax positions |
|
|
925 |
|
|
|
1,950 |
|
Ending balance of unrecognized tax benefits |
|
$ |
6,942 |
|
` |
$ |
6,780 |
|
|