Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Recorded Pretax Book Income (Loss) |
The Company recorded pretax book income (loss) as of December 31, 2025 and December 31, 2024 as follows:
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For the twelve months ended December 31, |
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2025 |
2024 |
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|
(In thousands, except percentages) |
|
|
|
|
|
|
|
|
US |
|
$ |
(70,763 |
) |
|
|
(70,112 |
) |
Foreign |
|
|
(482 |
) |
|
|
348 |
|
Total income (loss) before taxes |
|
$ |
(71,245 |
) |
|
$ |
(69,764 |
) |
|
| Schedule of Income Tax Expense (Benefit) |
The Company recorded the below income tax expense (benefit) attributable to income from continuing operations for the year ended December 31, 2025 and December 31, 2024 as follows:
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December 31, |
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2025 |
2024 |
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|
(In thousands, except percentages) |
|
Current |
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|
|
|
|
|
Federal |
|
$ |
— |
|
|
$ |
(7 |
) |
State |
|
|
— |
|
|
|
21 |
|
Foreign |
|
|
117 |
|
|
|
(34 |
) |
|
|
|
117 |
|
|
|
(20 |
) |
Deferred |
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|
|
|
|
|
Federal |
|
|
— |
|
|
|
— |
|
State |
|
|
— |
|
|
|
— |
|
Foreign |
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
Total income tax expense (benefit) |
|
$ |
117 |
|
|
$ |
(20 |
) |
|
| Schedule of Effective Income Tax Rate Reconciliation |
The following table reconciles our income tax expense based on the US statutory tax rate to the income tax expense (benefit) for the year ended December 31, 2025, after the adoption of ASU 2023-09:
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December 31, |
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2025 |
|
|
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|
(In thousands, except percentages) |
|
Tax at federal statutory rate |
|
$ |
(14,958 |
) |
|
|
(21.0 |
)% |
State, net of federal benefit |
|
|
— |
|
|
|
— |
% |
Stock-based compensation |
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|
(64 |
) |
|
|
(0.1 |
)% |
Fair value adjustments |
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|
2,622 |
|
|
|
3.7 |
% |
Research and development credits |
|
|
— |
|
|
|
— |
% |
Section 382 Limitation |
|
|
— |
|
|
|
— |
% |
Foreign tax effects |
|
|
259 |
|
|
|
0.4 |
% |
Other |
|
|
532 |
|
|
|
0.7 |
% |
Change in valuation allowance |
|
|
11,726 |
|
|
|
16.3 |
% |
Total provision for income taxes |
|
$ |
117 |
|
|
|
(0.0 |
)% |
The following table reconciles income taxes based on the U.S. Statutory tax rate to the Company's income tax expense (benefit) for the year ended December 31, 2024, prior to the adoption of ASU 2023-09:
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December 31, |
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|
2024 |
|
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|
(In thousands, except percentages) |
|
Tax at federal statutory rate |
|
$ |
(14,686 |
) |
|
|
(21.1 |
)% |
State, net of federal benefit |
|
|
12,947 |
|
|
|
18.6 |
% |
Stock-based compensation |
|
|
3,327 |
|
|
|
4.8 |
% |
Fair value adjustments |
|
|
(7,593 |
) |
|
|
(10.9 |
)% |
Research and development credits |
|
|
— |
|
|
|
— |
% |
Section 382 Limitation |
|
|
14,583 |
|
|
|
20.9 |
% |
Foreign tax effects |
|
|
— |
|
|
|
— |
% |
Other |
|
|
(745 |
) |
|
|
(1.1 |
)% |
Change in valuation allowance |
|
|
(7,853 |
) |
|
|
(11.2 |
)% |
Total provision for income taxes |
|
$ |
(20 |
) |
|
|
(0.0 |
)% |
|
| Components of Deferred Tax Assets and Liabilities |
The components of deferred tax assets and liabilities are as follows:
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December 31, |
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|
2025 |
|
|
2024 |
|
|
|
(In thousands) |
|
Deferred tax assets |
|
|
|
|
|
|
Net operating loss carryforwards |
|
$ |
95,061 |
|
|
$ |
81,649 |
|
Research and development tax credits |
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|
5,265 |
|
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|
5,086 |
|
Stock-based compensation |
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|
6,914 |
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|
4,952 |
|
Lease liability |
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|
2,202 |
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|
2,632 |
|
Section 174 research and development capitalization |
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|
7,465 |
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|
10,691 |
|
Interest expense |
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|
7,261 |
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|
7,157 |
|
Other timing differences |
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|
7,806 |
|
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|
8,754 |
|
Total deferred tax assets |
|
$ |
131,974 |
|
|
$ |
120,921 |
|
Valuation allowance |
|
$ |
(129,793 |
) |
|
$ |
(117,869 |
) |
Net deferred tax assets |
|
$ |
2,181 |
|
|
$ |
3,052 |
|
|
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Deferred tax liabilities |
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|
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|
Fixed assets and intangibles |
|
$ |
162 |
|
|
$ |
(299 |
) |
Right of use assets |
|
$ |
(2,343 |
) |
|
$ |
(2,753 |
) |
Total deferred tax liabilities |
|
$ |
(2,181 |
) |
|
$ |
(3,052 |
) |
Net deferred tax assets |
|
$ |
— |
|
|
$ |
— |
|
|
| Schedule of Unrecognized Tax Benefits Roll Forward |
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
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December 31, |
|
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|
2025 |
|
|
2024 |
|
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|
(In thousands) |
|
Balance at beginning of year |
|
$ |
2,759 |
|
|
$ |
6,060 |
|
Additions based on tax positions related to the current year |
|
|
97 |
|
|
|
(3,301 |
) |
Balance at end of year |
|
$ |
2,856 |
|
|
$ |
2,759 |
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