Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Components of Income Tax Expense (Benefit)

Income tax (benefit) expense for the years ended December 31, 2025 and 2024 attributable to loss from operations is presented below.


	Current		Deferred		Total
Year ended December 31, 2025
Federal	$	—	$	—	$	—
State*	(12)		—		(12)
Foreign	335		(454)		(119)
	$	323	$	(454)	$	(131)
Year ended December 31, 2024
Federal	$	23	$	—	$	23
State*	7		—		7
Foreign	274		117		391
	$	304	$	117	$	421

*- State taxes in Rhode Island make up the majority of the tax effect in this category

Schedule of Effective Income Tax Rate Reconciliation

The Company adopted ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” on a prospective basis for the year ended December 31, 2025. A reconciliation of income tax computed using the U.S. federal statutory rate of 21% compared to that reflected in operations, as required by ASU 2023-09, for the year ended December 31, 2025 consists of:


	Year Ended December 31, 2025
	Amount		Percent
Income tax benefit at Federal statutory income tax rate	$	(1,578)	21.00	%
Increase (decrease) in income taxes resulting from:
State income tax (expense) benefit, net of federal benefit*	—		—
Foreign tax effects
Brazil
Statutory rate difference	35		(0.47)
Valuation allowance	(329)		4.38
Other	76		(1.01)
Other foreign jurisdictions
Statutory rate difference	(8)		0.11
Valuation allowance	26		(0.35)
Other	121		(1.61)
Changes in valuation allowance	1,239		(16.49)
Non-taxable or non-deductible
Share-based payment awards	156		(2.07)
Other	46		(0.62)
Uncertain tax positions	72		(0.96)
Other adjustments	13		(0.17)



Effective tax rate	$	(131)	1.74	%

*- State taxes in Rhode Island make up the majority of the tax effect in this category

A reconciliation of income tax computed using the United States Federal statutory income tax rate of 21% compared to that reflected in operations, prior to the requirements of ASU 2023-09, for the year ended December 31, 2024 consists of:


	Year Ended December 31,
	2024
Income tax benefit at Federal statutory income tax rate	$	(2,232)
Increase (decrease) in income taxes resulting from:
State income tax (expense) benefit, net of federal benefit	(48)
State research and development, investment credits	423
Non-deductible meals & entertainment	31
Non-deductible stock compensation expense	479



Foreign exchange loss	110
Foreign tax rate differential	102

Uncertain tax positions	51
Provision to tax return adjustments	(15)
Change in valuation allowance	1,344

Non-deductible foreign transaction taxes	110



Other	66
Income tax expense	$	421

Schedule of Loss Before Income Tax, Domestic and Foreign

Loss before income tax (benefit) expense determined by tax jurisdiction, are as follows:


	Year Ended December 31,
	2025		2024
United States	$	(6,837)	$	(10,392)
Foreign	(677)		(235)
Total	$	(7,514)	$	(10,627)

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities for the periods presented consisted of the following:


	December 31,
	2025		2024
Deferred tax assets:
Accounts receivable, due to allowance for doubtful accounts	$	70	$	112
Inventories	1,781		2,188
Operating loss carryforwards	9,078		5,772
Stock-based compensation expense	388		436
Property and equipment, due to difference in depreciation	74		74
Research and development tax credit carryforwards	5,852		5,852
Foreign tax credit carryforwards	2,345		2,345
State tax credit carryforwards	2,456		2,962
Capitalized research and development	3,856		5,570
Warranty reserve	138		130
Accrued expenses	457		333
Intangible assets	210		—
Lease liability	908		244
Gross deferred tax assets	27,613		26,018
Less valuation allowance	(23,890)		(23,179)
Total deferred tax assets	3,723		2,839
Deferred tax liabilities:

Property and equipment, due to differences in depreciation	(2,218)		(2,430)
Right of use asset	(908)		(267)

Total deferred tax liabilities	(3,126)		(2,697)
Net deferred tax asset	$	597	$	142
Deferred income tax asset	$	602	$	157
Deferred income tax liability	$	(5)	$	(15)

Schedule of Unrecognized Tax Benefits Roll Forward

The aggregate changes in the total gross amount of unrecognized tax benefits, excluding penalties and interest, are as follows:


	Year Ended December 31,
	2025		2024
Unrecognized tax benefits as of January 1	$	871	$	1,044

Gross increase (decrease) in unrecognized tax benefits due to currency fluctuations - prior year tax positions	74		(159)

Lapse of statute of limitations	(8)		(14)
Unrecognized tax benefits as of December 31	$	937	$	871

Schedule of Net Income Taxes Paid (Net of Refunds)

Net income taxes paid (net of refunds):


	Year Ended December 31,
	2025
Federal	$	—
State	25
Foreign	172
	$	197

Income taxes paid (net of refunds) exceeded 5 percent of total income taxes paid (net of refunds) in the following jurisdictions:


			Year Ended December 31,
			2025
State			*
Foreign
Brazil			43
Denmark			104
India			18

*- No jurisdiction exceeds 5%