Income Tax (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Summary of U.S. and Foreign Components of Income (Loss) before Income Taxes |
U.S. and foreign components of income (loss) before income taxes were as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
U.S. |
|
$ |
(54,192 |
) |
|
$ |
(39,532 |
) |
|
$ |
(28,982 |
) |
Foreign |
|
|
(456 |
) |
|
|
(295 |
) |
|
|
(833 |
) |
Income (loss) before income taxes |
|
$ |
(54,648 |
) |
|
$ |
(39,827 |
) |
|
$ |
(29,815 |
) |
|
| Reconciliation of Income Tax Attributable to Operations |
Income tax expense/(recovery) consisted of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
Income tax recovery at U.S. federal statutory income tax rate |
|
$ |
(11,476 |
) |
|
|
21.0 |
% |
|
$ |
(8,364 |
) |
|
|
21.0 |
% |
|
$ |
(6,261 |
) |
|
|
21.0 |
% |
Domestic state & local income tax, net of federal income tax effect |
|
|
— |
|
|
|
0.0 |
% |
|
|
— |
|
|
|
0.0 |
% |
|
|
— |
|
|
|
0.0 |
% |
Foreign tax effects |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of tax attribute expirations |
|
|
2,312 |
|
|
|
-4.2 |
% |
|
|
— |
|
|
|
0.0 |
% |
|
|
— |
|
|
|
0.0 |
% |
Changes in valuation allowance |
|
|
(2,278 |
) |
|
|
4.2 |
% |
|
|
31 |
|
|
|
-0.1 |
% |
|
|
40 |
|
|
|
-0.1 |
% |
Other |
|
|
61 |
|
|
|
-0.1 |
% |
|
|
(6 |
) |
|
|
0.0 |
% |
|
|
(9 |
) |
|
|
0.0 |
% |
Other foreign jurisdictions |
|
|
1 |
|
|
|
0.0 |
% |
|
|
37 |
|
|
|
-0.1 |
% |
|
|
144 |
|
|
|
-0.5 |
% |
Enactment of new tax laws |
|
|
— |
|
|
|
0.0 |
% |
|
|
— |
|
|
|
0.0 |
% |
|
|
— |
|
|
|
0.0 |
% |
Effect of cross-border laws |
|
|
— |
|
|
|
0.0 |
% |
|
|
— |
|
|
|
0.0 |
% |
|
|
— |
|
|
|
0.0 |
% |
Tax credits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development tax credits |
|
|
(839 |
) |
|
|
1.5 |
% |
|
|
(1,084 |
) |
|
|
2.7 |
% |
|
|
(1,643 |
) |
|
|
5.5 |
% |
Other |
|
|
— |
|
|
|
0.0 |
% |
|
|
— |
|
|
|
0.0 |
% |
|
|
— |
|
|
|
0.0 |
% |
Changes in valuation allowance |
|
|
10,860 |
|
|
|
-19.9 |
% |
|
|
8,527 |
|
|
|
-21.4 |
% |
|
|
7,243 |
|
|
|
-24.3 |
% |
Non-taxable or non-deductible items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock Based Compensation |
|
|
1,077 |
|
|
|
-2.0 |
% |
|
|
610 |
|
|
|
-1.5 |
% |
|
|
360 |
|
|
|
-1.2 |
% |
Other |
|
|
265 |
|
|
|
-0.5 |
% |
|
|
293 |
|
|
|
-0.7 |
% |
|
|
116 |
|
|
|
-0.4 |
% |
Changes in unrecognized tax benefits |
|
|
— |
|
|
|
0.0 |
% |
|
|
— |
|
|
|
0.0 |
% |
|
|
— |
|
|
|
0.0 |
% |
Other |
|
|
17 |
|
|
|
0.0 |
% |
|
|
(44 |
) |
|
|
0.1 |
% |
|
|
10 |
|
|
|
0.0 |
% |
Income tax expense/(recovery) |
|
$ |
— |
|
|
|
0.0 |
% |
|
$ |
— |
|
|
|
0.0 |
% |
|
$ |
— |
|
|
|
0.0 |
% |
|
| Summary of Tax Effects of Temporary Differences and Carryforwards Rise to Deferred Tax Assets and Liabilities |
[b] The tax effects of the temporary differences and carryforwards that give rise to deferred tax assets and liabilities are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
Deferred tax assets |
|
|
|
|
|
|
Net operating loss carryforwards |
|
$ |
64,863 |
|
|
$ |
54,553 |
|
Research and development credits |
|
|
12,416 |
|
|
|
11,800 |
|
Stock based compensation |
|
|
1,594 |
|
|
|
1,535 |
|
Capitalized R&D expenses |
|
|
10,572 |
|
|
|
12,840 |
|
Other, net |
|
|
1,263 |
|
|
|
1,432 |
|
Total deferred tax assets |
|
|
90,708 |
|
|
|
82,160 |
|
Valuation allowance |
|
|
(90,425 |
) |
|
|
(81,830 |
) |
Net deferred tax assets |
|
|
283 |
|
|
|
330 |
|
Deferred tax liabilities |
|
|
|
|
|
|
Other |
|
|
(283 |
) |
|
|
(330 |
) |
Total deferred tax liabilities |
|
|
(283 |
) |
|
|
(330 |
) |
|
|
|
|
|
|
|
Net deferred tax liabilities |
|
|
— |
|
|
|
— |
|
|
| Summary of Components of Cash Income Taxes Paid Net of Refunds |
The components of cash income taxes paid net of refunds are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended |
|
|
|
December 31, |
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
Federal |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
State and local |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Foreign |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
| Reconciliation of Unrecognized Tax Benefits of Uncertain Tax Positions |
[c] A reconciliation of the unrecognized tax benefits of uncertain tax positions for the year ended December 31, 2025 is as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended |
|
|
|
December 31, |
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
Gross unrecognized tax benefits at January 1 |
|
$ |
761 |
|
|
$ |
761 |
|
|
$ |
761 |
|
Additions (reductions) from tax positions taken in prior years |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Additions (reductions) from tax positions taken in the current year |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Tax settlements |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Gross unrecognized tax benefits at December 31 |
|
$ |
761 |
|
|
$ |
761 |
|
|
$ |
761 |
|
|
| Summary of Years Open to Examination Under Different Jurisdiction |
We are subject to taxes in Canada, the U.K. and the United States until the applicable statute of limitations expires. However, in Canada and the United States, all tax years remain subject to examination due to the carryforward of unutilized NOLs and tax credits. Tax audits by their very nature are often complex and can require several years to complete. To our knowledge, we are not currently under examination by any taxing authorities.
|
|
|
Tax |
|
Years open to |
Jurisdiction |
|
examination |
Canada |
|
2021 to 2025 |
United Kingdom |
|
2019 to 2025 |
US |
|
2022 to 2025 |
|