Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Income from Continuing Operations before Provision for Income Taxes for Domestic and International Operations |
Income from continuing operations before provision for income taxes for the Company's domestic and international operations was as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
2025 |
|
|
2024 |
|
Domestic |
|
$ |
(110,276 |
) |
|
$ |
(72,132 |
) |
International |
|
|
(660 |
) |
|
|
(3,063 |
) |
Loss before provision for income taxes |
|
$ |
(110,936 |
) |
|
$ |
(75,195 |
) |
|
| Schedule of Significant Components of the Provision for Income Taxes |
Significant components of the provision for income taxes consist of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2025 |
|
|
2024 |
|
Current: |
|
|
|
|
|
|
Federal |
|
$ |
— |
|
|
$ |
— |
|
State |
|
|
15 |
|
|
|
8 |
|
Total |
|
|
15 |
|
|
|
8 |
|
Deferred: |
|
|
|
|
|
|
Federal |
|
|
(262 |
) |
|
|
(235 |
) |
State |
|
|
(133 |
) |
|
|
(60 |
) |
Total |
|
|
(395 |
) |
|
|
(295 |
) |
Total tax expense (benefit) |
|
$ |
(380 |
) |
|
$ |
(287 |
) |
|
| Schedule of Effective Income Tax Rate Reconciliation |
The following tables present the principal reasons for the difference between the effective tax rate and the federal statutory income tax rate (in thousands):
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2025 |
|
Federal income taxes at statutory rate |
|
$ |
(23,296 |
) |
|
|
21.00 |
% |
State and local income taxes, net of federal benefit (1) |
|
|
(241 |
) |
|
|
0.22 |
% |
Foreign tax effects |
|
|
|
|
|
|
Foreign rate differential |
|
|
139 |
|
|
|
(0.12 |
)% |
Nontaxable or nondeductible items |
|
|
|
|
|
|
Share based compensation |
|
|
1,489 |
|
|
|
(1.34 |
)% |
Change in fair value of financial instruments |
|
|
2,515 |
|
|
|
(2.27 |
)% |
Other |
|
|
329 |
|
|
|
(0.30 |
)% |
Other provision adjustments |
|
|
349 |
|
|
|
(0.31 |
)% |
Uncertain tax positions |
|
|
177 |
|
|
|
(0.16 |
)% |
Change in valuation allowance |
|
|
18,159 |
|
|
|
(16.37 |
)% |
Effective income tax rate |
|
$ |
(380 |
) |
|
|
0.34 |
% |
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2024 |
|
Federal income taxes at statutory rate |
|
$ |
(15,791 |
) |
|
|
21.00 |
% |
State tax benefit |
|
|
(2,910 |
) |
|
|
3.87 |
% |
Share based compensation |
|
|
592 |
|
|
|
(0.79 |
)% |
Change in fair value of financial instruments |
|
|
2,464 |
|
|
|
(3.28 |
)% |
Permanent difference |
|
|
1,422 |
|
|
|
(1.89 |
)% |
Uncertain tax positions |
|
|
1,453 |
|
|
|
(1.93 |
)% |
Change in valuation allowance |
|
|
12,483 |
|
|
|
(16.60 |
)% |
Effective income tax rate |
|
$ |
(287 |
) |
|
|
0.38 |
% |
(1) 50% of more of our state tax provision relates to the California state taxing jurisdiction(s).
|
| Schedule of Components of Deferred Tax Assets and Liabilities |
Significant components of deferred tax assets and liabilities are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
|
|
2025 |
|
|
2024 |
|
Accrued expenses and reserves |
|
|
1,107 |
|
|
|
2,082 |
|
Stock compensation |
|
|
1,157 |
|
|
|
1,316 |
|
Interest expense carryforward |
|
|
6,800 |
|
|
|
3,229 |
|
Net operating loss carryforward |
|
|
72,248 |
|
|
|
54,169 |
|
Capitalized research costs |
|
|
4,007 |
|
|
|
5,102 |
|
Lease liabilities - operating leases |
|
|
3,200 |
|
|
|
4,164 |
|
Deferred revenues |
|
|
961 |
|
|
|
1,444 |
|
Other |
|
|
(1,191 |
) |
|
|
156 |
|
Deferred Tax Assets, Gross |
|
|
88,289 |
|
|
|
71,662 |
|
Valuation Allowance |
|
|
(76,280 |
) |
|
|
(57,548 |
) |
Deferred Tax Assets, Net of Valuation Allowance |
|
|
12,009 |
|
|
|
14,114 |
|
Depreciation and amortization differences |
|
|
(9,153 |
) |
|
|
(10,302 |
) |
ROU assets - operating leases |
|
|
(3,242 |
) |
|
|
(4,532 |
) |
Prepaid expenses |
|
|
(396 |
) |
|
|
(321 |
) |
Other |
|
|
— |
|
|
|
— |
|
Total Deferred Tax Liabilities |
|
|
(12,791 |
) |
|
|
(15,155 |
) |
Total Deferred Tax Assets (Liabilities), net |
|
$ |
(782 |
) |
|
$ |
(1,041 |
) |
|
| Schedule of Unrecognized Tax Benefits |
The following is a tabular reconciliation of the total amount of the Company's unrecognized tax benefits for the year (in thousands):
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
Unrecognized tax benefits at January 1, |
|
$ |
38,979 |
|
|
$ |
37,146 |
|
Additions for tax positions of prior years |
|
|
217 |
|
|
|
1,833 |
|
Unrecognized tax benefits at December 31, |
|
$ |
39,196 |
|
|
$ |
38,979 |
|
|