v3.26.1
Income Tax Provision (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Provision [Abstract]  
Schedule of Loss Before Income Taxes The loss before income taxes was allocated between domestic and foreign sources as follows for the years ended December 31, 2025 and 2024:
   December 31, 2025   December 31, 2024 
Domestic  $(627)  $(4,135)
Foreign   —    — 
Loss before income taxes  $(627)  $(4,135)
Schedule of Income Tax Provision

The income tax provision for the years ended December 31, 2025 and 2024 was $120 and $5, respectively, and consisted of the following:

 

   December 31, 2025   December 31, 2024 
Current provision          
Federal  $49   $— 
State   71    5 
Total current provision   120    5 
           
Deferred provision          
Federal   —    — 
State   —    — 
Total deferred provision   —    — 
           
Provision for income taxes  $120   $5 
Schedule of Reconciliation Federal Statutory Income Tax Rate A reconciliation of the U.S. federal statutory income tax rate to our effective tax rate pursuant to the disclosure requirements of ASU 2023-09 for the year ended December 31, 2025 is as follows:
   For the Year Ended 
   December 31, 2025 
U.S. statutory rate  $(132)   21.00%
State and local income taxes1, net of federal income tax effect   54    (8.57)%
Change in valuation allowance   (279)   44.44%
Return to provision:          
Change in pre-tax income   56    (8.97)%
Other return to provision   1    (0.09)%
Other deferred adjustments:          
Fixed assets   (71)   11.26%
Intangibles   (79)   12.63%
481(a) adjustment   558    (88.91)%
Net operating loss   (682)   108.73%
Stock compensation   90    (14.35)%
Section 163(j)   29    (4.57)%
Bad debt expense   (67)   10.62%
UNICAP   (50)   7.99%
Other deferred adjustments   (7)   1.01%
Uncertain tax position adjustment   660    (105.15)%
Non-taxable/non-deductible items:          
Meals and entertainment expenses   39    (6.23)%
Effective tax rate  $120    (19.16)%

 

1Massachusetts and New York account for greater than 50% of the tax effect in this category.

 

The reconciliation of the U.S. statutory rate of 21.00% to the Company’s effective tax rate for the year ended December 31, 2024 in accordance with the guidance prior to the adoption of ASU 2023-09 is summarized as follows:

 

   December 31,
2024		 
U.S. Statutory rate   21.00%
State taxes, net of federal   5.08%
Change in valuation allowance   (24.77)%
Other permanent differences   (1.43)%
Effective tax rate   (0.12)%
Schedule of Deferred Tax Assets and Liabilities

The table below presents the effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities as of December 31, 2025 and 2024:

 

   December 31,
2025		   December 31,
2024		 
Deferred tax assets:        
Net operating loss carryforwards  $1,515   $1,051 
Charitable contributions   53    29 
Lease liability   600    208 
Stock compensation   114    219 
Compensation expense   26    26 
Unrealized gain/loss   —    3 
Allowance for credit losses   360    167 
UNICAP   67    30 
Amortization   134    755 
Total gross deferred tax assets   2,869    2,488 
Less: Valuation allowance   (1,833)   (2,234)
Net deferred tax assets   1,036    254 
           
Deferred tax liabilities:          
Lease liability   (534)   (208)
Depreciation   (114)   (46)
Unrealized gains   (41)   — 
481a adjustment   (347)   — 
Total deferred tax liabilities   (1,036)   (254)
           
Total deferred tax assets (liabilities)  $—   $— 
Schedule of Cash Paid for Income Taxes

Cash paid for income taxes, net of refunds received, by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the year ended December 31, 2025 is as follows:

 

   December 31,
2025		 
Federal  $34 
State     
Massachusetts   69 
New York   7 
Texas   27 
Other states   3 
Cash paid for income taxes, net of refunds received  $140 
Schedule of Uncertain Tax Positions The Company did not record interest expense for 2025 as the amount was nominal.
Unrecognized tax benefits as of December 31, 2023  $2,448 
Gross increase in unrecognized tax benefits for prior year   693 
Decreases due to settlements   — 
Unrecognized tax benefits as of December 31, 2024  $3,141 
Gross decrease in unrecognized tax benefits for prior year   (3,141)
Decreases due to settlements   — 
Unrecognized tax benefits as of December 31, 2025  $—