Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Domestic and Foreign Components of Loss |
The domestic and foreign components of loss before income taxes are as follows:
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2025 |
|
|
2024 |
|
Domestic |
|
$ |
(26,450,000 |
) |
|
$ |
(112,422,000 |
) |
Foreign |
|
|
122,000 |
|
|
|
438,000 |
|
Loss before provision for income taxes |
|
$ |
(26,328,000 |
) |
|
$ |
(111,984,000 |
) |
|
| Schedule of Provision for Domestic and Foreign Income Taxes |
The provision for domestic and foreign income taxes is as follows:
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2025 |
|
|
2024 |
|
Current: |
|
|
|
|
|
|
Federal |
|
$ |
— |
|
|
$ |
— |
|
Foreign |
|
|
51,000 |
|
|
|
34,000 |
|
State and local |
|
|
16,000 |
|
|
|
(1,000 |
) |
Total current income tax provision |
|
$ |
67,000 |
|
|
$ |
33,000 |
|
Deferred: |
|
|
|
|
|
|
Federal |
|
$ |
— |
|
|
$ |
— |
|
Foreign |
|
|
— |
|
|
|
— |
|
State and local |
|
|
— |
|
|
|
— |
|
Total deferred income tax provision |
|
|
— |
|
|
|
— |
|
Income tax provision |
|
$ |
67,000 |
|
|
$ |
33,000 |
|
|
| Schedule of Effective Income Tax Rate Reconciliation |
Reconciliations of the income tax computed at the federal statutory tax rate to the provision for income taxes are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2025 |
|
|
2024 |
|
|
|
$ |
|
|
% |
|
|
$ |
|
|
% |
|
U.S. federal statutory tax rate |
|
$ |
(5,529,000 |
) |
|
|
21.00 |
% |
|
$ |
(23,517,000 |
) |
|
|
21.00 |
% |
State and local income tax, net of federal income tax effect |
|
|
176,000 |
|
|
|
-0.67 |
% |
|
|
367,000 |
|
|
|
-0.33 |
% |
Foreign tax effects |
|
|
25,000 |
|
|
|
-0.10 |
% |
|
|
(57,000 |
) |
|
|
0.05 |
% |
Tax credits |
|
|
|
|
|
|
|
|
|
|
|
|
Research and development tax credits |
|
|
(234,000 |
) |
|
|
0.89 |
% |
|
|
145,000 |
|
|
|
-0.13 |
% |
Change in valuation allowance |
|
|
5,491,000 |
|
|
|
-20.86 |
% |
|
|
26,974,000 |
|
|
|
-24.09 |
% |
Nontaxable or nondeductible items |
|
|
|
|
|
|
|
|
|
|
|
|
Contingent consideration liability |
|
|
— |
|
|
|
0.00 |
% |
|
|
(2,287,000 |
) |
|
|
2.04 |
% |
Officers’ compensation |
|
|
22,000 |
|
|
|
-0.08 |
% |
|
|
188,000 |
|
|
|
-0.17 |
% |
Stock-based compensation |
|
|
752,000 |
|
|
|
-2.86 |
% |
|
|
1,716,000 |
|
|
|
-1.53 |
% |
Convertible debentures and warrants |
|
|
(795,000 |
) |
|
|
3.02 |
% |
|
|
1,544,000 |
|
|
|
-1.38 |
% |
Other |
|
|
20,000 |
|
|
|
-0.07 |
% |
|
|
44,000 |
|
|
|
-0.04 |
% |
Changes in unrecognized tax benefits |
|
|
— |
|
|
|
0.00 |
% |
|
|
— |
|
|
|
0.00 |
% |
Other |
|
|
|
|
|
|
|
|
|
|
|
|
Section 382 |
|
|
— |
|
|
|
0.00 |
% |
|
|
(4,239,000 |
) |
|
|
3.79 |
% |
Other |
|
|
139,000 |
|
|
|
-0.52 |
% |
|
|
(845,000 |
) |
|
|
0.75 |
% |
Provision for income taxes |
|
$ |
67,000 |
|
|
|
-0.25 |
% |
|
$ |
33,000 |
|
|
|
-0.04 |
% |
|
| Schedule of Deferred Tax Assets |
Significant components of the Company’s deferred tax assets at December 31, 2025 and 2024 are as follows:
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2025 |
|
|
2024 |
|
Deferred tax assets: |
|
|
|
|
|
|
Net operating loss carryforwards |
|
$ |
123,470,000 |
|
|
$ |
113,907,000 |
|
Research and development credits |
|
|
9,363,000 |
|
|
|
9,130,000 |
|
Stock-based compensation |
|
|
2,315,000 |
|
|
|
2,136,000 |
|
ASC 842 - lease liability |
|
|
1,510,000 |
|
|
|
1,529,000 |
|
UNICAP |
|
|
298,000 |
|
|
|
527,000 |
|
Sec 174 Capitalization |
|
|
10,725,000 |
|
|
|
14,759,000 |
|
Other |
|
|
1,328,000 |
|
|
|
1,708,000 |
|
Total gross |
|
|
149,009,000 |
|
|
|
143,696,000 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
Depreciation |
|
|
(195,000 |
) |
|
|
— |
|
Amortization |
|
|
(926,000 |
) |
|
|
(2,100,000 |
) |
ASC 842 - ROU asset |
|
|
(1,378,000 |
) |
|
|
(1,124,000 |
) |
Less: valuation allowance |
|
|
(146,510,000 |
) |
|
|
(140,472,000 |
) |
Deferred tax assets, net of valuation allowance |
|
$ |
— |
|
|
$ |
— |
|
|
| Schedule of Deferred Tax Assets Valuation Allowance |
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2025 |
|
|
2024 |
|
Deferred tax assets - Valuation allowance: |
|
|
|
|
|
|
Balance at beginning of the year |
|
$ |
140,472,000 |
|
|
$ |
110,713,000 |
|
Federal increase |
|
|
5,491,000 |
|
|
|
26,974,000 |
|
State increase |
|
|
547,000 |
|
|
|
2,785,000 |
|
Balance at the end of the year |
|
$ |
146,510,000 |
|
|
$ |
140,472,000 |
|
|
| Schedule of Unrecognized Tax Benefits |
Reconciliations of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, are as follows:
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2025 |
|
|
2024 |
|
Balance at beginning of the year |
|
$ |
6,943,000 |
|
|
$ |
4,987,000 |
|
Additions for tax positions taken in the prior year |
|
|
— |
|
|
|
1,190,000 |
|
Additions for tax positions taken in the current year |
|
|
185,000 |
|
|
|
766,000 |
|
Balance at the end of the year |
|
$ |
7,128,000 |
|
|
$ |
6,943,000 |
|
|
| Schedule of Income Taxes Paid |
The amounts of cash taxes paid are as follows:
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2025 |
|
|
2024 |
|
Current: |
|
|
|
|
|
|
Federal |
|
$ |
— |
|
|
$ |
— |
|
Foreign |
|
|
113,000 |
|
|
|
48,000 |
|
State and local |
|
|
6,000 |
|
|
|
6,000 |
|
Total |
|
$ |
119,000 |
|
|
$ |
54,000 |
|
|