v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Provision Expense for Income Taxes
The Company had no current or deferred tax expense recorded as of December 31, 2025 and 2024.
Income tax expense differs from the statutory rate due primarily to the impact of the valuation allowance against the Company’s deferred tax assets.
Deferred Income Tax Assets and Liabilities
The components of deferred income tax assets and liabilities are as follows:
December 31,
20252024
Deferred Tax Assets
Net operating loss carryforwards$18,352 $9,512 
Tax credits and other carryforwards691 464 
Section 174 expenditures450 1,993 
Warrant and Series E liabilities
2,670 — 
Accrued liabilities and other items669 332 
Deferred Tax Assets 22,832 12,301 
Deferred Tax Liability
Depreciation and amortization(2,391)(1,338)
Deferred Tax Liability (2,391)(1,338)
Deferred Tax Assets, Net 20,441 10,963 
Valuation Allowance(20,441)(10,963)
Net Deferred Tax Asset $— $— 
A reconciliation of the Company’s provision for income taxes at the federal statutory rate of 21% to the reported income tax provision for the years ended December 31, 2025 and 2024 is as follows:
December 31,
20252024
Computed “expected” tax benefit$(8,475)$(3,267)
Permanent differences51 33 
General Business tax credits(227)— 
Other(828)157 
Change in valuation allowance9,479 3,077 
Income Tax expense (benefit) $— $— 
The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income, and tax-planning strategies in making this assessment. The Company has determined for the years ended December 31, 2025 and 2024, based on all available evidence analyzed on a more likely than not basis, a valuation allowance should be established on all of the net deferred tax asset in its U.S. jurisdiction since there is not enough positive evidence to support the more likely than not position for the future realization in the U.S. jurisdiction.
On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the Tax Act). The Tax Act allows for the indefinite carryforward of net operating losses (“NOLs”) arising in a taxable year ending after December 31, 2017, which would be considered an indefinite lived asset. The amendments limit the future usage of such NOLs to 80% of taxable income in a single year and disallow the carryback of NOLs to prior years with taxable income.
As of December 31, 2025 and 2024, the Company has federal net operating loss carryforwards of $87,390 and $45,295, respectively. The Company has federal tax credit carryforwards of $691 and $464 for the years ended December 31, 2025 and 2024, respectively. The NOLs and tax credit carryforwards recorded are subject to limitations under Section 382 and 383. However, the Section 382 limitation did not limit the usage of the net operating loss carryforwards in 2025 or 2024 for federal tax purposes. In addition, the Company’s ability to utilize the current NOL carryforwards might be further limited by future equity issuances. The federal net operating loss carryforwards originated after 2016 and have an indefinite life which may be used to offset 80% of a future year’s taxable income. The Company has various state net operating loss carryforwards with various carryforward periods that will begin to expire in 2034.
The Company operates in various states within the United States and files income tax returns in these various jurisdictions and has generated various net operating loss carryforwards in these jurisdictions to date. The Company does not believe a material uncertain tax position exists as of December 31, 2025 and 2024. Based on the Company’s assessment of many factors, including past experience and complex judgments about future events, the Company does not currently anticipate significant changes in its uncertain tax positions over the next 12 months. In connection with the adoption of the referenced provision, the Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. As of December 31, 2025 and 2024, the Company had no accrued interest and penalties.
The Company’s federal and state tax returns are open for review going back to the 2022 tax year.