INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Domestic and Foreign Components of Net Income (Loss) Before Income Taxes

The domestic and foreign components of the Company’s Net Income (Loss) Before Income Taxes consists of the following for the periods presented (in thousands):


	Years Ended December 31,
	2025		2024		2023
United States	$	(35,534)	$	(53,963)	$	(106,384)
Foreign	—		—		—
Net Loss Before Income Taxes	$	(35,534)	$	(53,963)	$	(106,384)

Schedule of Components of Income Tax

The components of the Company’s Income Tax Expense are as follows for the periods presented (in thousands):


	Years Ended December 31,
	2025		2024		2023
Current:
Federal	$	—	$	—	$	—
State	137		28		15
Foreign	—		—		—
Total Current Income Tax Expense	137		28		15
Deferred:
Federal	47		47		47
State	(16)		41		16
Foreign	—		—		—
Total Deferred Income Tax Expense	31		88		63
Total Income Tax Expense	$	168	$	116	$	78

Schedule of Effective Income Tax Reconciliation

The following table presents required disclosures pursuant to ASU 2023-09 and reconciles the U.S. federal statutory income tax rate of 21% to the Company’s Net Loss Before Income Taxes for the year ended December 31, 2025 (dollar amounts in thousands):


	Year Ended December 31, 2025
	Amount ($)		Percent (%)
U.S. federal statutory tax rate	$	(7,462)	21	%
State and local income taxes, net of federal income tax effect (1)	92		—	%
Tax credits
Research and development tax credits	35		—	%
Changes in valuation allowances	(2,545)		7	%
Nontaxable or nondeductible items
Share-based payment awards	866		(2)	%
Convertible Preferred Stock Warrants	8,842		(25)	%
Other	295		(1)	%
Changes in unrecognized tax benefits	(9)		—	%
Other U.S. federal adjustments
Other	54		—	%
Effective income tax rate	$	168	—	%
(a) State taxes in Indiana, Massachusetts and Pennsylvania made up the majority (greater than 50%) of the tax effect in this category.

The following table reconciles the U.S. federal statutory income tax rate of 21% to the Company’s Net Loss Before Income Taxes for the following periods prior to the year ended December 31, 2025:


	Years Ended December 31,
	2024		2023
U.S. federal tax at statutory rate	21	%	21	%
State and local income taxes, net of federal income tax effect	8	%	8	%
Share-based payment awards	(1)	%	(1)	%
Convertible Preferred Stock Warrants	(25)	%	(12)	%
Changes in valuation allowances	5	%	(18)	%
Return-to-provision	(3)	%	(1)	%
State tax rate changes	(4)	%	2	%
Other	(1)	%	1	%
Income Tax Expense	—	%	—	%

Schedule of Deferred Tax Assets and Liabilities

Temporary items that give rise to significant portions of deferred tax assets and liabilities are as follows for the periods presented (in thousands):


	December 31,
	2025		2024
Net operating loss carry forwards	$	97,359	$	100,301
Research and other credits	2,711		2,779
Stock compensation	594		1,550
Accrued liabilities	9,422		7,168
Lease liabilities	2,269		3,507
Property and equipment	4,992		3,998
Section 174 R&D capitalization	5,499		9,480
Total deferred tax assets	122,846		128,783
Net servicing rights	(1,184)		(509)
Intangible assets	(5,924)		(2,826)
Right-of-use assets	(1,661)		(2,559)
Total deferred tax liabilities	(8,769)		(5,894)
Total net deferred tax asset	114,077		122,889
Less: Valuation allowance	(114,916)		(123,697)
Net deferred tax liability	$	(839)	$	(808)

Schedule of Income Taxes Paid, Net of Refunds Received

ASU 2023-09 requires entities to provide additional disclosures about income taxes paid by jurisdiction. Applying these updated requirements on a prospective basis, cash payments made for income taxes, net of refunds, are as follows (in thousands):


	Year Ended December 31, 2025
California	$	291
Massachusetts	80
Pennsylvania	47
Other	91
Total Income Taxes Paid, Net of Refunds Received	$	509

Supplemental cash flow information related to the Company’s operating leases is as follows (dollars in thousands):


	Years Ended December 31,
	2025		2024		2023
Non-cash operating activity:
ROU assets obtained or adjusted in exchange for new, amended and modified operating lease liabilities	$	—	$	35	$	(697)

Schedule of Unrecognized Tax Benefits

The following table summarizes the Company’s activity related to its unrecognized tax benefits (in thousands):


Balance at December 31, 2022	$	1,291
Change related to 2023 tax year position	—
Balance at December 31, 2023	$	1,291
Change related to 2024 tax year position	—
Balance at December 31, 2024	$	1,291
Change related to 2025 tax year position	—
Change related to positions of prior tax years	(112)
Balance at December 31, 2025	$	1,179