v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Loss before Income Taxes from U.S. Operations and Foreign
The Company’s loss before income taxes was generated from its U.S. operations and foreign operations as follows:
Year Ended December 31,
202520242023
United States$30,131 $33,349 $51,004 
Foreign20,833 16,407 10,505 
Loss before income taxes$50,964 $49,756 $61,509 
Schedule of Components of Current and Deferred Income Tax Expense
The following table shows the expense (benefit) for income taxes:
Year Ended December 31,
202520242023
Current provision:
Federal $— $— $— 
State90 279 138 
Foreign566 406 33 
Total current provision$656 $685 $171 
Deferred provision (benefit):
Federal $21 $(18)$1 
State— (3)4 
Foreign— — — 
Total deferred (benefit) provision$21 $(21)$5 
Total provision for income taxes$677 $664 $176 
Schedule of Effective Income Tax Reconciliation
A reconciliation of the difference between the provision (benefit) for income taxes and income taxes at the statutory U.S. federal income tax rate after the adoption of ASU 2023-09 is as follows:
Year Ended December 31,
2025
U.S. Federal Statutory Rate$(10,702)21.00 %
State and Local Taxes, Net of Federal Income Tax Benefit(1)
997 (1.96)%
Foreign Tax Effects
UK
Change in Valuation Allowance4,391 (8.62)%
Other(67)0.13 %
Other Foreign Entities617 (1.21)%
Tax Credits1,313 (2.58)%
Change in Valuation Allowance4,352 (8.54)%
Nontaxable or Nondeductible Items
Revaluation of Contingent Liabilities(1,340)2.63 %
Officers' Compensation1,387 (2.72)%
Share-based Compensation678 (1.33)%
Meals595 (1.17)%
Other31 (0.06)%
Changes in Unrecognized Tax Benefits(1,583)3.11 %
Other Adjustments8 (0.02)%
Income tax provision (benefit)$677 (1.34)%
(1) The state of California made up the majority (greater than 50%) of the tax effect in this category.
A reconciliation of the difference between the provision (benefit) for income taxes and income taxes at the statutory U.S. federal income tax rate before the adoption of ASU 2023-09 is as follows:
Year Ended December 31,
20242023
Income tax at statutory rate$(10,413)$(12,917)
State and local income taxes, net of federal income tax benefit(753)(1,981)
Revaluation of contingent royalty obligation1,823 1,078 
Meals and entertainment713 385 
Change in state tax rate50 218 
Officers' compensation1,231 793 
Foreign Rate Differential443 222 
Stock compensation(1,377)449 
Other, net125 (449)
Valuation allowance8,822 12,378 
Income tax provision (benefit)$664 $176 
Schedule of Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities were as follows:
As of December 31,
202520242023
Deferred income tax assets:
Net operating losses$94,930 $86,277 $83,257 
Stock compensation7,890 7,808 5,442 
Research and development credits1,034 2,617 2,617 
Operating lease liabilities2,303 2,152 1,567 
Accrued legal settlement15,147 16,283 17,674 
R&E capitalization3,590 4,107 3,415 
Carryforward of interest expense under Section 163(j)11,471 8,325 5,072 
Other, net6,167 6,488 6,192 
Valuation allowance(133,986)(124,895)(116,073)
Total deferred income tax assets8,546 9,162 9,163 
Deferred income tax liabilities:
Intangible amortization(6,728)(7,343)(7,730)
Operating lease ROU assets(1,846)(1,825)(1,460)
Total deferred income tax liabilities(8,574)(9,168)(9,190)
Net deferred income taxes$(28)$(6)$(27)
Schedule of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
Year Ended December 31,
202520242023
Beginning balance$2,924 $2,924 $2,924 
Decreases to prior year tax positions
(2,070)— — 
Increases to current year tax positions241 — — 
Ending balance$1,095 $2,924 $2,924 
Schedule of Cash Flow Supplemental Disclosures
The following table presents income taxes paid (net of refunds received) for the year ended December 31, 2025:
Year Ended December 31,
2025
Current:
Federal$— 
Foreign
Australia61
Netherlands747
Spain211
State and local196
Total$1,215