v3.26.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Loss From Continuing Operations before Income Tax Benefit (Provision) for Domestic and Non-U.S. Operations

Loss from continuing operations before income tax benefit (provision) for domestic and non-U.S. operations is as follows (in thousands):

 

 

 

For the Year Ended December 31,

 

 

 

2025

 

 

2024

 

Loss from continuing operations before income tax benefit (provision):

 

 

 

 

 

 

U.S.

 

$

(17,389

)

 

$

(27,317

)

Foreign

 

 

(882

)

 

 

1,496

 

Loss from continuing operations before income tax benefit (provision)

 

$

(18,271

)

 

$

(25,821

)
Income Tax Benefit (Provision)

The income tax benefit (provision) consisted of the following (in thousands):

 

 

 

For the Year Ended December 31,

 

 

 

2025

 

 

2024

 

Deferred:

 

 

 

 

 

 

Federal

 

$

—

 

 

$

—

 

State

 

 

—

 

 

 

—

 

Foreign

 

 

—

 

 

 

—

 

 

 

$

—

 

 

$

—

 

Current:

 

 

 

 

 

 

Federal

 

$

—

 

 

$

—

 

State

 

 

166

 

 

 

(39

)

Foreign

 

 

102

 

 

 

(51

)

Total current

 

 

268

 

 

 

(90

)

Total income tax benefit (provision)

 

$

268

 

 

$

(90

)
Significant Items Making up Deferred Tax Assets and Liabilities

Significant items making up deferred tax assets and liabilities are as follows (in thousands):

 

 

 

December 31,

 

 

 

2025

 

 

2024

 

Deferred tax assets:

 

 

 

 

 

 

Allowances not currently deductible for tax purposes

 

$

140

 

 

$

186

 

Net operating loss carryforwards

 

 

35,802

 

 

 

27,577

 

General carryforwards

 

 

—

 

 

 

1,533

 

Stock-based compensation

 

 

1,077

 

 

 

1,334

 

Accrued and other

 

 

908

 

 

 

1,992

 

 

 

 

37,927

 

 

 

32,622

 

Less valuation allowance

 

 

(37,013

)

 

 

(32,299

)

 

 

 

914

 

 

 

323

 

Deferred tax liabilities:

 

 

 

 

 

 

Depreciation and amortization

 

 

(3

)

 

 

—

 

State income taxes

 

 

(911

)

 

 

(323

)

 

 

 

(914

)

 

 

(323

)

Net deferred tax asset

 

$

—

 

 

$

—

 
Summary of Net Deferred Tax Assets Valuation Allowance

The following table summarizes the Company’s net deferred tax assets valuation allowance activity (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

Balance at beginning of period

 

$

32,299

 

 

$

56,045

 

Increases in valuation allowance

 

 

4,714

 

 

 

—

 

Decreases in valuation allowance

 

 

—

 

 

 

(23,746

)

Balance at end of period

 

$

37,013

 

 

$

32,299

 
Income Tax Benefit (Provision) Reconciled to Amount Computed by Applying Statutory Federal Tax Rate to Loss from Continuing Operations Before Income Tax Provision

The income tax benefit (provision) reconciled to the amount computed by applying the statutory federal tax rate to the loss from continuing operations before income tax benefit (provision) is as follows (in thousands):

 

 

 

Year Ended

 

 

Year Ended

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

Amount

 

 

%

 

 

Amount

 

 

%

 

Income tax benefit (provision) at U.S. federal statutory tax rate

 

$

3,837

 

 

 

21.00

%

 

$

5,422

 

 

 

21.00

%

State income taxes, net of federal benefit*

 

 

(29

)

 

 

(0.16

)%

 

 

(31

)

 

 

(0.12

)%

State taxes - current taxes return to provision adjustment

 

 

698

 

 

 

3.82

%

 

 

—

 

 

 

—

 

Foreign tax effects:

 

 

 

 

 

 

 

 

 

 

 

 

Japan

 

 

 

 

 

 

 

 

 

 

 

 

Statutory tax rate differential

 

 

295

 

 

 

1.61

%

 

 

(50

)

 

 

(0.19

)%

Germany

 

 

 

 

 

 

 

 

 

 

 

 

Statutory tax rate differential

 

 

278

 

 

 

1.52

%

 

 

—

 

 

 

—

 

Singapore

 

 

 

 

 

 

 

 

 

 

 

 

Statutory tax rate differential

 

 

(189

)

 

 

(1.03

)%

 

 

—

 

 

 

—

 

Canada

 

 

 

 

 

 

 

 

 

 

 

 

Statutory tax rate differential

 

 

(513

)

 

 

(2.81

)%

 

 

—

 

 

 

—

 

Thailand

 

 

 

 

 

 

 

 

 

 

 

 

Statutory tax rate differential

 

 

43

 

 

 

0.24

%

 

 

—

 

 

 

—

 

Other jurisdictions

 

 

2

 

 

 

0.01

%

 

 

—

 

 

 

—

 

Changes in valuation allowances

 

 

(2,732

)

 

 

(14.95

)%

 

 

(4,655

)

 

 

(18.03

)%

Nontaxable or nondeductible items:

 

 

 

 

 

 

 

 

 

 

 

 

Stock compensation

 

 

(537

)

 

 

(2.94

)%

 

 

(744

)

 

 

(2.88

)%

Other

 

 

(2

)

 

 

(0.01

)%

 

 

(31

)

 

 

(0.12

)%

Changes in unrecognized tax benefits

 

 

(683

)

 

 

(3.74

)%

 

 

(1

)

 

 

(0.01

)%

Other:

 

 

 

 

 

 

 

 

 

 

 

 

Return to provision adjustments

 

 

(200

)

 

 

(1.09

)%

 

 

—

 

 

 

—

 

Total income tax benefit (provision)

 

$

268

 

 

 

1.47

%

 

$

(90

)

 

 

(0.35

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

* State taxes in California and Texas made up the majority (greater than 50 percent) of the effect in this category.

 
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits with an impact on the Company’s consolidated balance sheets or statements of comprehensive income (loss) is as follows (in thousands):

 

 

 

December 31,

 

 

 

2025

 

 

2024

 

Balance at beginning of period

 

$

2,282

 

 

$

2,279

 

Additions based on tax positions related to the current year

 

 

8

 

 

 

1

 

Additions for tax positions of prior years

 

 

—

 

 

 

2

 

Reductions in prior year tax positions

 

 

(196

)

 

 

—

 

Balance at end of period

 

$

2,094

 

 

$

2,282

 
Summary of Income Tax Paid, Net of Refunds

The following table summarizes the Company’s income taxes paid, net of refunds (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

Income tax payments (refunds), net

 

 

 

 

 

 

Federal

 

$

—

 

 

$

—

 

State

 

 

 

 

 

 

California

 

 

(2,948

)

 

 

3,523

 

Other states

 

 

67

 

 

 

39

 

Foreign

 

 

 

 

 

 

Germany

 

 

932

 

 

 

—

 

United Kingdom

 

 

—

 

 

 

590

 

Other

 

 

40

 

 

 

29

 

Taxes payments (refunds), net

 

$

(1,909

)

 

$

4,181