v3.26.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
SCHEDULE OF INCOME (LOSS) BEFORE INCOME TAX (BENEFIT) EXPENSE

The components of loss before income tax expense by jurisdiction for continuing operations for the years ended December 31, consisted of the following (in thousands):

 

   2025   2024 
United States  $(10,586)  $(15,119)
Canada   (72)   (75)
United Kingdom   (7)   60 
Total loss before tax expense  $(10,665)  $(15,134)
SCHEDULE OF INCOME TAX PAID (NET OF REFUNDS)

The amount of income taxes paid (net of refunds) for continuing operations for the years ended December 31, consisted of the following (in thousands):

 

   2025   2024 
Federal  $ —   $50 
State    —    3 
Foreign    —     — 
Total income tax expense  $ —   $53 
SCHEDULE OF COMPONENTS OF INCOME TAX (BENEFIT) EXPENSE

The components of current and deferred federal, state and foreign income tax (benefit) expense for continuing operations for the years ended December 31, consisted of the following (in thousands):

 

   2025   2024 
Federal income benefit - current  $ —   $(13)
Federal income tax expense - deferred    —    3,897 
State income tax expense - current    —      — 
State income tax expense - deferred    —    551 
Foreign income tax expense - current    —     — 
Foreign income tax expense (benefit) - deferred    —      —
Total income tax expense  $  —   $4,435 
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION

The Company’s U.S. federal statutory rate is 21%. The following table reconciles the Company’s U.S federal statutory rate of 21% to its effective tax rate from continuing operations for the years ended December 31, as follows (in thousands except for percentages):

 

   (In thousands)
Amount		    Percentage of
Pretax Income		   (In thousands)
Amount		     Percentage of
Pretax Income		 
   Year Ended   Year Ended 
   December 31, 2025   December 31, 2024 
   (In thousands)
Amount		    Percentage of
Pretax Income		   (In thousands)
Amount		     Percentage of
Pretax Income		 
U.S. federal statutory tax rate  $(2,240)    21.0%  $(3,178)     21.0%
State income taxes, net of federal effect   —  (1)  0.0%   551 (2)     -3.7%
Foreign tax effects   16     -0.1%   3      0.0%
Tax credits: research and development tax credit   (618)    5.8%   (148)     1.0%
Increase in valuation allowance   2,577     -24.2%   7,026      -46.4%
Nontaxable or nondeductible items   131     -1.2%   188      -1.2%
Changes in unrecognized tax benefits   124     -1.2%   30      -0.2%
Other Adjustments   10     -0.1%   (37)     0.2%
Effective tax rate  $ —     0.0%  $4,435      -29.3%

 

(1)The Company has not recorded any state tax expense or benefit for 2025. Based on the Company’s state filing profile, California and Tennessee would contribute the majority (greater than 50%) of the tax effect in this category in 2025.
(2)State taxes in Tennessee and New Jersey made up the majority (greater than 50%) of the tax effect in this category for 2024.
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES

The table below reflects components of the Company’s deferred tax asset balances for the years ended December 31, as follows: (in thousands):

 

Deferred tax assets:  2025   2024 
Net operating losses  $16,842   $13,502 
Environmental and closure reserves   3,060    2,306 
Lease liability   365    422 
Capital loss carryforward   757    753 
Accrued expenses   1,256    1,189 
R&D cost capitalization   1,136    1,115 
Tax credits   812    318 
Deferred tax liabilities:          
Depreciation and amortization   (3,670)   (2,985)
Indefinite lived intangible assets   (1,980)   (1,906)
Right-of-use lease asset   (348)   (404)
Prepaid expenses   (34)   (27)
Deferred tax assets, gross   18,196    14,283 
Valuation allowance   (18,196)   (14,283)
Net deferred income tax asset  $—   $— 
SCHEDULE OF RECOGNIZED TAX EXPENSES

The Company accounts for uncertainties in income tax pursuant to ASC 740. A reconciliation of the beginning and ending amount of our unrecognized tax expense is summarized as follows (in thousands):

 

   2025   2024 
Balances at beginning of year  $111   $81 
Addition related to R&D tax credit   124    30 
Balances at end of the year  $235   $111