v3.26.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of components of (loss)

The components of loss before income taxes are as follows (dollars in thousands):

 

 

   2025   2024 
   Year ended December 31, 
   2025   2024 
         
Domestic  $

(10,474

)  $(17,228)
Foreign   (37)   (509)
(Loss) before income taxes  $

(10,511

)  $(17,737)
Schedule of Income Tax Reconciliation

The following table reconciles the U.S. federal statutory income tax rate to the Company’s effective income tax rate for the year ended December 31, 2025 :

 

Schedule of Income Tax Reconciliation

           
   Year Ended 
   December 31, 2025 
(in thousands)  Amount   Percentage 
Federal statutory income tax rate  $(2,207)   21.0%
State and local income taxes, net of federal income tax effect   25    (0.2)%
           
Foreign tax effects:          
Other foreign jurisdictions   8    (0.1)%
           
Other Adjustments          
True-up   18    (0.2)%
           
Changes in valuation allowances   2,330    (22.2)%
           
Nontaxable or nondeductible items:          
Non-Deductible Expenses   40    (0.4)%
Warrant Revaluation   (189)   1.8%
           
Effective income tax rate  $25    (0.3)%

 

 

As previously disclosed for the year ended December 31, 2024, prior to the adoption of ASU 2023-09, the effective income tax rate differed from the federal statutory income tax rate as follows:

 

     
   Year Ended
December 31, 2024
 
     
Federal statutory income tax rate   21.0%
State income taxes, net of federal benefit   4.3%
Permanent differences – non-deductible expense   (1.0)%
Change in fair value of warrant liabilities   2.0%
True-ups   (0.6)%
Federal R&D Credits   (0.0)%
Foreign rate differential   0.1%
Change in deferred tax asset valuation allowance   (25.9)%
Effective income tax rate   (0.1)%
Schedule of Deferred Tax Assets (Liabilities)

(in thousands)  December 31,
2025
   December 31,
2024
 
Deferred tax assets (liabilities):          
Net operating loss carryforwards  $43,369    $41,154 
Intangible assets   4,438    3,794 
Property and equipment   149    140 
Accrued expenses and reserves   350    404 
Stock based compensation   1,135    937 
Lease liability   395    215 
Other   275    705 
Total deferred tax assets   50,111    47,349 
Valuation allowance   (49,713)   (47,114)
Total deferred tax assets, net of valuation allowance   398    235 
Deferred tax liabilities:          
Operating right-of-use assets   (398)   (235)
Total deferred tax assets   (398)   (235)
Net deferred taxes  $-   $- 
Schedule of Valuation allowance

The changes in the valuation allowance were as follows (in thousands):

 

Schedule of Valuation allowance 

   Year Ended
December 31, 2025
 
Beginning balance  $47,114 
Domestic federal income taxes   2,330 
Domestic state & local income taxes   261 
Foreign income taxes   8 
Total change in valuation allowance   2,599 
Ending balance  $49,713