Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Components of Income Before Provision for Income Taxes |
The following table presents the domestic and foreign components of (Loss) income before (benefit) provision for income taxes for the periods indicated (in thousands):
|
|
|
|
|
|
|
|
|
|
|
Years Ended December 31, |
|
|
|
2025 |
|
|
2024 |
|
|
|
|
|
|
|
|
Domestic |
|
$ |
(11,167 |
) |
|
$ |
(8,754 |
) |
|
|
|
|
|
|
|
(Loss) income before (benefit) provision for income taxes |
|
$ |
(11,167 |
) |
|
$ |
(8,754 |
) |
|
| Provision for Income Taxes |
(Benefit) provision for income taxes consisted of the following for the periods indicated (in thousands):
|
|
|
|
|
|
|
|
|
|
|
Years Ended December 31, |
|
|
|
2025 |
|
|
2024 |
|
Current: |
|
|
|
|
|
|
Federal |
|
$ |
- |
|
|
$ |
- |
|
State |
|
|
2,450 |
|
|
|
1,715 |
|
Total Current |
|
|
2,450 |
|
|
|
1,715 |
|
Deferred: |
|
|
|
|
|
|
Federal |
|
|
- |
|
|
|
- |
|
State |
|
|
- |
|
|
|
- |
|
Total Deferred |
|
|
- |
|
|
|
- |
|
Total Provision |
|
$ |
2,450 |
|
|
$ |
1,715 |
|
|
| Schedule Of Effective Income Tax Rate Reconciliation |
The differences between the tax provision (benefit) at the U.S. federal statutory income tax rate to the unrecognized income tax expenses and the U.S. statutory income tax rate to our effective tax rates are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
|
2025 |
|
|
|
|
Amount |
|
|
% |
|
|
U.S. Federal Statutory Income Tax (Benefit) |
|
|
(2,345 |
) |
|
|
21.0 |
% |
|
|
|
|
|
|
|
|
|
State and local income taxes, net of federal benefit (1) |
|
|
(569 |
) |
|
|
5.1 |
% |
|
Change in valuation allowance |
|
|
3,040 |
|
|
|
(27.2 |
%) |
|
Nontaxable / nondeductible items (permanent items) |
|
|
91 |
|
|
|
(0.8 |
%) |
|
Fair value adjustment on common warrants |
|
|
(192 |
) |
|
|
1.7 |
% |
|
State deferred tax adjustments, net of federal benefit |
|
|
173 |
|
|
|
(1.5 |
%) |
|
Change in state tax rate, net of federal benefit |
|
|
310 |
|
|
|
(2.8 |
%) |
|
Changes in unrecognized tax benefits / prior-period positions |
|
|
(668 |
) |
|
|
6.0 |
% |
|
Other |
|
|
167 |
|
|
|
-1.5 |
% |
|
Income Tax Provision/(Benefit) and Effective Income Tax Rate |
|
|
(5 |
) |
|
|
- |
% |
|
|
|
$ |
2 |
|
|
|
- |
% |
|
The following is a reconciliation of the United States federal income tax statutory rate to the Company's effective income tax rate for the year ended December 31, 2024 as previously disclosed and prior to the adoption of ASU No. 2023-09 (in thousands).
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
|
2024 |
|
|
|
|
Amount |
|
|
U.S. Federal Statutory Income Tax (Benefit) |
|
|
(1,838 |
) |
|
Increase (decrease) resulting from: |
|
|
|
|
Change in valuation allowance |
|
|
4,034 |
|
|
Permanent items |
|
|
(330 |
) |
|
Tax credits |
|
|
(456 |
) |
|
State |
|
|
(1,410 |
) |
|
Income Tax Provision/(Benefit) and Effective Income Tax Rate |
|
|
- |
|
|
|
| Schedule of Deferred Tax Assets and Liabilities |
The components of the Company’s deferred tax assets and liabilities are as follows (in thousands): Deferred Tax Assets and Liabilities
|
|
|
|
|
|
|
|
|
|
|
Years Ended December 31, |
|
|
|
2025 |
|
|
2024 |
|
Deferred tax assets: |
|
|
|
|
|
|
Net operating loss carryforwards |
|
$ |
13,741 |
|
|
$ |
11,035 |
|
Tax credits carryforwards(1) |
|
|
2,901 |
|
|
|
2,395 |
|
Stock-based compensation |
|
|
648 |
|
|
|
517 |
|
Fixed assets/intangible assets |
|
|
137 |
|
|
|
125 |
|
Charitable contributions |
|
|
4 |
|
|
|
5 |
|
Capitalized research |
|
|
2,387 |
|
|
|
2,706 |
|
Lease liability |
|
|
55 |
|
|
|
79 |
|
Accruals and other |
|
|
- |
|
|
|
1 |
|
Gross deferred tax assets |
|
|
19,873 |
|
|
|
16,863 |
|
Valuation allowance |
|
|
(19,824 |
) |
|
|
(16,784 |
) |
Deferred tax assets |
|
|
49 |
|
|
|
79 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
Right-of-use asset |
|
|
(49 |
) |
|
|
(79 |
) |
Deferred tax liabilities |
|
|
(49 |
) |
|
|
(79 |
) |
Net deferred tax asset |
|
$ |
- |
|
|
$ |
- |
|
(1) Federal and state tax credit carryforward are presented net of certain liabilities for unrecognized tax benefits.
|
| Schedule of Unrecognized Tax Benefits |
The following summarizes the activity related to the Company’s unrecognized tax benefits for the year ended December 31, 2025 (in thousands): Schedule of Unrecognized Tax Benefits
|
|
|
|
|
|
|
Amount |
|
Balance at January 1, 2025 |
|
|
827 |
|
Tax positions related to the current year: |
|
|
|
Additions |
|
|
195 |
|
Tax positions related to the prior year: |
|
|
|
Reduction |
|
|
(26 |
) |
Balance at December 31, 2025 |
|
$ |
996 |
|
|
| Schedule of Income Taxes Paid By Jurisdiction |
Following is a summary of income taxes paid (in thousands) by jurisdiction pursuant to the disclosure requirements of ASU No. 2023-09 for the period presented:
|
|
|
|
|
|
|
Year Ended
December 31, |
|
|
|
2025 |
|
Jurisdiction |
|
|
|
United States - Federal |
|
$ |
- |
|
United States - California |
|
|
1 |
|
United States - New Jersey |
|
|
- |
|
United States - Other States |
|
|
- |
|
Foreign |
|
|
- |
|
Total cash paid for income taxes, net of refunds |
|
$ |
1 |
|
|