Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Summary of Components of Loss from Continuing Operations Before Provision for Income Taxes

The components of the loss from continuing operations before provision for income taxes consists of the following (in thousands):


	Years Ended December 31,
	2025		2024
Domestic	$	(13,321)	$	(3,822)
Foreign	(220)		(230)
Loss before taxes	$	(13,541)	$	(4,052)

Difference Between Provision (Benefit) for Income Taxes and the Amount Computed by Applying U.S. Federal Income Tax Rate

The difference between the provision (benefit) for income taxes and the amount computed by applying the U.S. federal income tax rate for the year ended December 31, 2025 is as follows (in thousands):


	Years Ended December 31,
	2025
Income taxes (benefit) at statutory rates	$	(2,844)	21.0	%
State income tax (benefit), net of federal benefit (1)	75		(0.6)	%
Foreign tax effects
Australia
Research credit	984		(7.3)	%
Change in Valuation Allowance	(950)		7.0	%
Other	12		(0.1)	%
Effect of changes in tax laws or rates enacted in the current period	—		—	%
Tax credits
Research and development credit	(732)		5.4	%
Changes in valuation allowance	(50)		0.4	%
Nontaxable or nondeductible items
Permanent items	865		(6.4)	%
Officers' compensation	475		(3.5)	%
Stock compensation	1,761		(13.0)	%
Changes in unrecognized tax benefits	71		(0.5)	%
Other, net
Expiration of attributes	229		(1.7)	%
Other	104		(0.7)	%
	$	—	0.00	%

(1) The states that contributed to the majority (greater than 50%) of the tax effect in this category include California and Massachusetts.

As previously disclosed, prior to the adoption of ASU 2023-09, the difference between the provision (benefit) for income taxes and the amount computed by applying the U.S. federal income tax rate for the year ended December 31, 2024 is as follows:


	2024
Federal income tax expense at statutory rate	21.00	%
State income tax, net of federal benefit	(3.75)	%
State tax rate change	29.65	%
Permanent differences	(2.21)	%
Research and development credit	43.95	%
Stock compensation	(5.49)	%
Other	(12.88)	%
Change in valuation allowance	(70.27)	%
Effective income tax rate	—	%

Summary of Major Components of Company's Deferred Tax Assets

The major components of the Company’s deferred tax assets as of December 31, 2025 and 2024 are shown below (in thousands).


	2025		2024
Deferred tax assets:
Net operating loss carryforwards	$	98,463	$	85,686
Research and development credit carryforwards	12,357		12,767
Capitalized research and development costs	1,366		13,449
Stock compensation	674		3,570
Other	1,546		306
Total deferred tax assets	114,406		115,778
Valuation allowance	(113,743)		(115,532)
Deferred tax assets, net of valuation allowance	663		246

Deferred tax liabilities:
Right-of-use assets	(654)		(246)
Other	(9)		—
Total deferred tax liabilities	(663)		(246)
Net deferred tax assets (liabilities)	$	—	$	—

Schedule of Reconciliation of the Beginning and Ending Amount of Uncertain Tax Benefits

A reconciliation of the beginning and ending amount of uncertain tax benefits is as follows (in thousands):


	Years Ended December 31,
	2025		2024
Beginning balance uncertain tax benefits	$	3,067	$	2,761
Decreases related to prior year positions	—		(31)
Additions related to prior year positions	59		—
Additions related to current year positions	65		337
Decreases related to settlements with taxing authorities	—		—
Decreases as a result of a lapse of the applicable statute of limitations	—		—
Ending balance of unrecognized tax benefits	$	3,191	$	3,067