Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Profit (Loss) before Income Tax |
The components of the Company’s loss before income taxes from continuing operations are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, |
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
Loss before income taxes: |
|
|
|
|
|
|
|
|
|
Domestic |
|
$ |
(15,325 |
) |
|
$ |
(83,768 |
) |
|
$ |
(45,319 |
) |
Foreign |
|
|
(92,232 |
) |
|
|
(15,693 |
) |
|
|
(11,694 |
) |
Total |
|
$ |
(107,557 |
) |
|
$ |
(99,461 |
) |
|
$ |
(57,013 |
) |
|
| Schedule of Loss Before Taxes |
The components of income tax (benefit) expense from continuing operations are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, |
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
Current Provision |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
3 |
|
|
$ |
— |
|
|
$ |
— |
|
State |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Foreign |
|
|
46 |
|
|
|
397 |
|
|
|
73 |
|
Total current expense |
|
|
49 |
|
|
|
397 |
|
|
|
73 |
|
Deferred Benefit |
|
|
|
|
|
|
|
|
|
Federal |
|
|
— |
|
|
|
— |
|
|
|
— |
|
State |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Foreign |
|
|
(7,251 |
) |
|
|
— |
|
|
|
(11 |
) |
Total deferred benefit |
|
|
(7,251 |
) |
|
|
— |
|
|
|
(11 |
) |
Total income tax benefit |
|
$ |
(7,202 |
) |
|
$ |
397 |
|
|
$ |
62 |
|
|
| Schedule of effective tax rate from continuing operations |
The overall effective tax rate from continuing operations differs from the statutory Israel tax rate as follows:
|
|
|
|
|
|
|
|
|
|
|
Pretax Loss |
|
|
|
Year ended December 31, 2025 |
|
|
|
Amount |
|
|
Percent |
|
Israel federal statutory tax rate |
|
$ |
(24,738 |
) |
|
|
23.0 |
% |
Foreign tax effects: |
|
|
|
|
|
|
U.S. |
|
|
|
|
|
|
Transaction costs |
|
|
2,521 |
|
|
|
(2.3 |
)% |
Loss on investment |
|
|
(41,239 |
) |
|
|
38.3 |
% |
Effect of rates different than statutory |
|
|
5,031 |
|
|
|
(4.7 |
)% |
Change in valuation allowance |
|
|
45,602 |
|
|
|
(42.4 |
)% |
Other |
|
|
(101 |
) |
|
|
0.1 |
% |
Other |
|
|
2,193 |
|
|
|
(2.0 |
)% |
Changes in valuation allowance |
|
|
3,487 |
|
|
|
(3.2 |
)% |
Nontaxable or nondeductible items |
|
|
68 |
|
|
|
(0.1 |
)% |
Other adjustments |
|
|
(26 |
) |
|
|
0.0 |
% |
Effective tax rate |
|
$ |
(7,202 |
) |
|
|
6.7 |
% |
|
| Schedule of reconciliation of the corporation tax rate |
A reconciliation of the provision for income taxes to the amount computed by applying the 23% Israel statutory income tax rate to income before income taxes for years prior to the adoption of ASU 2023-09 is as follows:
|
|
|
|
|
|
|
|
|
|
|
Pretax Loss |
|
|
|
Year ended December 31, |
|
|
|
2024 |
|
|
2023 |
|
Statutory tax rate in Israel |
|
|
23.0 |
% |
|
|
23 |
% |
Nondeductible items |
|
|
(4 |
)% |
|
|
(9 |
)% |
Change in valuation allowance |
|
|
(19 |
)% |
|
|
(14 |
)% |
Effective tax rate |
|
|
0.0 |
% |
|
|
0.0 |
% |
|
| Schedule of Deferred Tax Assets |
Significant components of the Company’s net deferred tax assets from continuing operations are as follows:
|
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
|
|
2025 |
|
|
2024 |
|
Deferred tax assets |
|
|
|
|
|
|
Lease liability |
|
$ |
7,005 |
|
|
|
— |
|
Research and development expenditures |
|
|
3,908 |
|
|
|
6,464 |
|
Stock-based compensation |
|
|
398 |
|
|
|
— |
|
Reserves |
|
|
1,369 |
|
|
|
— |
|
Deferred revenue |
|
|
177 |
|
|
|
— |
|
Accrued expenses |
|
|
371 |
|
|
|
436 |
|
Amortization |
|
|
1,655 |
|
|
|
— |
|
Inventory reserves |
|
|
553 |
|
|
|
— |
|
Interest |
|
|
103 |
|
|
|
— |
|
Long-term settlement payable |
|
|
1,051 |
|
|
|
— |
|
Litigation expenses |
|
|
114 |
|
|
|
— |
|
Unrealized losses on securities |
|
|
21,460 |
|
|
|
21,065 |
|
Net operating losses |
|
|
224,827 |
|
|
|
93,628 |
|
Capital losses |
|
|
20,550 |
|
|
|
— |
|
Research and development credits |
|
|
11,751 |
|
|
|
— |
|
Other credits |
|
|
387 |
|
|
|
— |
|
Gross deferred tax assets |
|
|
295,679 |
|
|
|
121,593 |
|
Less: Valuation allowance |
|
|
(284,063 |
) |
|
|
(121,593 |
) |
Deferred tax liabilities |
|
|
|
|
|
|
Right-of-use assets |
|
|
(5,073 |
) |
|
|
— |
|
Deferred expenses |
|
|
(122 |
) |
|
|
— |
|
Acquired intangible assets |
|
|
(3,611 |
) |
|
|
— |
|
Other assets - license |
|
|
(1,016 |
) |
|
|
— |
|
Depreciation |
|
|
(1,370 |
) |
|
|
— |
|
Net deferred tax assets |
|
$ |
424 |
|
|
$ |
— |
|
|
| Summary of net operating loss (NOL) carryforwards |
As of December 31, 2025, the Company had net operating loss (NOL) carryforwards of $1.2 billion, capital loss carryforwards of $89.3 million and credit carryforwards of $13.1 million from continuing operations, as follows:
|
|
|
|
|
|
|
|
|
Jurisdiction |
|
Attribute |
|
Carryforward Amount |
|
|
Expiration |
Australia |
|
NOL |
|
$ |
1 |
|
|
Indefinite |
Germany |
|
NOL |
|
|
3,100 |
|
|
Indefinite |
Hong Kong |
|
NOL |
|
|
400 |
|
|
Indefinite |
Israel |
|
NOL |
|
|
360,600 |
|
|
Indefinite |
Israel |
|
Capital losses |
|
|
89,300 |
|
|
Indefinite |
Sweden |
|
NOL |
|
|
15,100 |
|
|
Indefinite |
Switzerland |
|
NOL |
|
|
14,200 |
|
|
Beginning in 2025 |
United Kingdom |
|
NOL |
|
|
13,900 |
|
|
Indefinite |
United Kingdom |
|
R&D |
|
|
100 |
|
|
Indefinite |
US - Federal |
|
NOL |
|
|
15,000 |
|
|
Beginning in 2033 |
US - Federal |
|
NOL |
|
|
540,600 |
|
|
Indefinite |
US - State |
|
NOL |
|
|
260,300 |
|
|
Various, beginning in 2026 |
US - Federal |
|
R&D |
|
|
7,900 |
|
|
Beginning in 2033 |
US - State |
|
R&D |
|
|
4,700 |
|
|
Beginning in 2032 |
US - State |
|
Other credits |
|
|
400 |
|
|
Beginning in 2026 |
|
| Summary Of Valuation Allowance |
The following table presents the changes in the balance of the Company’s deferred income tax asset valuation allowance:
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, |
|
|
|
2025 |
|
|
2024 |
|
Balance at beginning of year |
|
$ |
121,593 |
|
|
$ |
85,972 |
|
Additions due to expense |
|
|
49,089 |
|
|
|
35,621 |
|
Additions due to acquisitions and other |
|
|
113,381 |
|
|
|
— |
|
Balance at end of year |
|
$ |
284,063 |
|
|
$ |
121,593 |
|
|