INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

Income tax expense for each of the following years consists of the following (in thousands):

SCHEDULE OF PROVISION FOR INCOME TAXES

	2025		2024
	For the year ended December 31,
	2025		2024

Current:
U.S. federal	$	100	$	—
State and local		—		—
Total current income tax expense		100		—

Deferred:
U.S. federal		—		—
State and local		—		—
Total deferred income tax expense		—		—

Total income tax expense	$	100	$	—

SCHEDULE OF INCOME TAX RATE AND TAX PROVISION

A reconciliation of the income tax expense the amount computed by applying the 21% statutory U.S federal income tax rate to income before income taxes after the adoption of ASU 2023-09 as follows:

In thousands except for percentages	Amount			Percent
	For the year ended December 31, 2025
In thousands except for percentages	Amount			Percent

US federal statutory tax rate	$	14,970			21.0	%
State and local income taxes, net of federal income tax effect (a)		—			0.0	%
Tax credits
Research and development (“R&D”) credit		(2,882	)		(4.0	)%
Deferred true ups
Change in fair value of warrant liabilities
Expired tax losses and credits
Permanent differences
R&D credit expired (under statute or 382 study)		3,327			4.6	%
Changes in valuation allowance		(36,054	)		(50.6	)%
Nontaxable or nondeductible items
Change in FV of warrant liabilities		(1,289	)		(1.8	)%
Other		141			0.2	%
Other adjustments
Federal NOL’s expired (under statute or 382 limitation)		20,284			28.5	%
Share-based awards		984			1.4	%
Other		619			0.8	%
Total income tax expense	$	100			0.1	%

(a)

State taxes in New York made up the majority (greater than 50 percent) of the tax effect in this category.

	For the year ended December 31, 2024

Income taxes at U.S. statutory rate	$	(13,384	)
State tax, net of federal benefit		(679	)
Research and development credit		(1,535	)
Deferred true ups		8,032
Valuation allowance		5,418
Change in fair value of warrant liabilities		159
Expired tax losses and credits		2,116
Permanent differences		(127	)
Total tax expense	$	—

SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES

Deferred taxes are provided for the temporary differences between the financial reporting bases and the tax bases of the Company’s assets and liabilities. The temporary differences that give rise to deferred tax assets and liabilities were as follows (in thousands):

	2025			2024
	For the year ended December 31,
	2025			2024

Deferred tax assets:
Net operating loss carryforwards	$	65,956		$	88,059
General business credit carryforwards		5,228			6,000
State credits		77			2,780
Property and equipment		—			1,002
Stock based compensation		2,542			2,463
Intangible assets		652			661
Accrual to cash conversion		892			—
Accruals		—			107
Capitalized research and development		770			13,264
Operating lease liabilities		318			—
Other		91			70
Deferred tax assets before valuation allowance		76,526			114,406
Valuation allowance		(74,922	)		(114,406	)
Total deferred tax assets		1,604			—
Deferred tax liabilities:
Property and equipment		(1,333	)		—
Right-of-use asset		(271	)		—
Total deferred tax liabilities		(1,604	)		—
Net deferred tax asset (liability)	$	—		$	—