v3.26.1
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Taxes  
Income Taxes

15. Income Taxes

A summary of the components of the provision for income taxes is as follows:

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​

​

​

​

​

​

​

December 31, 

​

December 31, 

​

2025

  ​ ​ ​

2024

Current income tax expense:

​

​

​

​

​

U.S. Federal

$

46

​

$

—

U.S. State

​

—

​

​

—

Canada

​

—

​

​

—

Foreign

​

104

​

​

125

Total current expense

$

150

​

$

125

​

​

​

​

​

​

Deferred income tax benefit :

​

​

​

​

​

U.S. Federal

$

(192)

​

 

(638)

U.S. State

 

(236)

​

 

(44)

Canada

​

—

​

​

—

Foreign

 

—

​

 

—

Total deferred expense

$

(428)

​

$

(682)

​

​

​

​

​

​

Total income tax benefit

$

(278)

​

$

(557)

​

​

​

​

​

​

Loss before income taxes:

 

  ​

​

 

  ​

United States

$

(82,889)

​

$

(48,380)

Canada

​

—

​

​

—

Foreign

 

753

​

 

841

Total loss before income taxes

$

(82,136)

​

$

(47,539)

​

The state that contributes the majority (greater than 50%) of the U.S. State deferred income tax benefit for the years ended December 31, 2025 and 2024 was Florida.

A reconciliation of the provision for income taxes to the amount computed by applying the 15% statutory Canada federal income tax rate to the income before income taxes after the adoption of ASU 2023-09 is as follows:

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​

​

​

​

​

​

​

December 31, 

​

​

​

​

2025

​

Percentages

Income tax expense at Canada federal statutory tax rate

$

(12,320)

​

15.0

%

State and local income tax, net of federal income tax effect

 

—

​

—

​

Foreign tax effects

 

​

​

​

​

Other jurisdictions

 

(8)

​

—

​

United States

 

—

​

​

​

State and local income tax, net of federal income tax effect

 

—

​

—

​

Statutory tax rate difference

 

(4,973)

​

6.1

​

Goodwill impairment

 

9,014

​

(11.0)

​

Valuation allowance

​

7,810

​

(9.5)

​

Other reconciling items

 

199

​

(0.2)

​

Total income tax benefit

$

(278)

​

0.3

%

​

A reconciliation of the provision for income taxes to the amount computed by applying the 23% statutory Canada income tax rate to the income before income taxes for the year prior to the adoption of ASU 2023-09 is as follows:

​

​

​

​

​

December 31, 

​

2024

Loss before income taxes

$

(47,539)

Expected income tax (recovery) expense

 

(10,934)

Difference in foreign tax rates

 

684

State taxes and other adjustments

 

(44)

Changes in stock-based compensation

 

—

Foreign accrual property income

 

918

Stock-based compensation and non-deductible expenses

 

2,487

Prior period adjustment

 

3,280

Change in valuation allowance

 

3,052

Total income tax benefit

$

(557)

​

The following table summarizes the components of deferred tax:

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​

​

​

​

​

​

​

​

​

December 31, 

​

December 31, 

​

  ​ ​ ​

2025

  ​ ​ ​

2024

Deferred tax assets

​

​

​

​

​

​

Intangible assets - licenses

​

$

4,236

​

$

4,236

Share issuance costs

​

 

—

​

 

655

Reserves

​

 

1,428

​

 

1,225

Non-capital loss carried forward - Canada

​

 

6,513

​

 

6,419

Net operating losses carried forward - US

​

 

19,859

​

 

13,864

Investment tax credits

​

 

165

​

 

165

Lease liabilities

​

 

520

​

 

428

Stock-based compensation

​

 

4,452

​

 

3,885

Other

​

 

2,321

​

 

2,999

Total deferred tax assets

​

$

39,494

​

$

33,876

​

​

​

​

​

​

​

Deferred tax liabilities

​

 

  ​

​

 

  ​

Property and equipment

​

 

(2,338)

​

 

(2,795)

ROU assets

​

 

(482)

​

 

(380)

Intangibles

​

 

(723)

​

 

(3,797)

Other

​

 

(43)

​

 

(42)

Total deferred tax liabilities

​

$

(3,586)

​

$

(7,014)

Less: valuation allowance

​

 

(35,935)

​

 

(27,318)

Deferred tax liability, net

​

$

(27)

​

$

(456)

​

No deferred tax asset has been recognized for Canada, as it is not more likely than not to be realized. Consequently, a valuation allowance has been applied against the net deferred tax asset. The Canadian non-capital loss carry forwards expire as noted in the table below.

​

​

​

​

2039

​

$

919

2040

​

​

1,706

2041

​

​

2,215

2042

​

​

1,579

2043

​

​

—

2044

​

​

—

2045

​

​

94

Total

​

$

6,513

​

The Company’s US federal net-operating income tax losses expire as follows:

​

​

​

​

2035

  ​ ​ ​

$

180

2036

​

​

323

2037

​

​

812

Indefinitely (subject to 80% limitation)

​

​

19,901

Derecognized under Section 382

​

​

(3,814)

Total

​

$

17,402

​

As of December 31, 2025, we had net operating loss carryforwards for U.S. federal and state income tax purposes of $21,216 and noncapital loss carryforwards for Canada of $6,513, which will begin to expire in fiscal year 2039. We have evaluated the factors bearing upon the realizability of our deferred tax assets, which are comprised principally of net operating loss carryforwards and noncapital loss carryforwards. In 2021, we concluded that, due to the limitations under Section 382, our U.S. federal and state income tax net operating loss carryforwards, as well as R&D credit carryforwards, for the periods prior to February 11, 2021, have been limited to zero. We therefore have derecognized $3,814 of this asset, reducing the carryforward of these amounts to $17,402.

In prior years, there were no uncertain tax positions. In connection with the acquisition of PulseVet®, as part of the BPA transaction completed in 2021, it was assessed that an uncertain tax position exists related to withholding taxes on royalties for approximately $265. An uncertain tax liability and an indemnification asset were recorded. It is the Company's policy to record interest within interest expense and penalties in non-operating income. Tax years subject to examination for US federal and state jurisdictions are generally years from 2021 and forward. Tax years subject to examination in Canada are from years 2020 and forward.

The Company is in an overall domestic net deferred tax liability position for the year ended December 31, 2025. Management has assessed that the future taxable income resulting from the deferred tax liability position will result in partial utilization of the Company's US federal and state net operating loss carryforwards and has therefore concluded a valuation allowance of $25,092 is currently necessary. Due to the uncertainty of realizing any tax benefits as of December 31, 2025 due to historical losses, a full valuation allowance remains necessary to fully offset our Canadian deferred tax assets.

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Income taxes paid by jurisdiction, exceedimg 5% of the total income taxes paid by year, were as follows:

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​

​

​

​

December 31, 

​

2025

Japan

$

5

Switzerland

 

148

Total income taxes paid

$

153

​