v3.26.1
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Taxes [Abstract]  
Income Taxes
14.
Income Taxes
 
The components of the net deferred tax assets are as follows at December 31:
 
                 
    2025     2024  
    (in thousands)  
Operating loss carryforwards
  $ 69,301     $ 63,057  
Tax credit carryforwards
    9,016       9,010  
Other temporary differences
    17,349       18,276  
      95,666       90,343  
Less valuation allowance
    (95,666 )      (90,343 ) 
Net deferred tax asset
  $   —       $   —    
 
The primary factors affecting the Company’s income tax rates were as follows:
 
                             
    Year ended December 31,  
    2025     2024  
    Amount     
Percent
    Amount     
Percent
 
Tax benefit as U.S. statutory rates
  $ (6,224 )   (21.0 )%   $ (9,778 )   (21.0 )%
State income tax benefit
    (663 )   (2.2 )      (1,181 )   (2.5 ) 
Permanent differences
    145    0.5 %     74    0.1 %
Other
    (139 )   (0.5 )%     (1,880 )   (4.0 )%
Change in valuation allowance
    6,881    23.2 %     12,765    27.4 %
                             
Total effective income tax rate
  $ —       — %   $ —       — %
As of December 31, 2025, the Company has federal and state net operating loss carryforwards totaling $163,412,000 and $169,710,000, respectively, which will never expire as a result of the 2017 Tax Act. As of December 31, 2023, the Company has federal and state net operating loss carryforwards totaling $113,541,000 and $102,003,000 respectively, which expire through 2037. In addition, the Company has federal and state research and development credits of $7,781,000 and $1,235,000, respectively, which expire through 2042. Ownership changes, as defined by Section 382 of the Internal Revenue Code, may have limited the amount of net operating loss carryforwards that can be utilized annually to offset future taxable income. Past and subsequent ownership changes could further affect the limitation in future years. Because of the Company’s limited operating history and its recorded losses, management has provided, in each of the last two years, a 100% valuation allowance against the Company’s net deferred tax assets.
 
The enactment of the One Big Beautiful Bill Act (“OBBBA”), including the continued capitalization and amortization requirements for Section 174 research and experimental expenditures, did not result in any state income tax liabilities or payments for the year; however, it impacted the composition of our federal net operating loss carryforwards as a portion of amounts previously deductible are now reflected as capitalized Section 174 costs.
 
The Company is subject to taxation in the U.S. and various states. Based on the history of net operating losses all jurisdictions and tax years are open for examination until the operating losses are utilized or the statute of limitations expires. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of December 31, 2025 and 2024, the Company does not have any significant uncertain tax positions.