v3.26.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2025
Income Taxes [Abstract]  
Schedule of Domestic and Foreign Components of Loss from Continuing Operations Before Income Taxes

The components of loss from continuing operations before income taxes for the years ended December 31, 2025 and 2024 are as follows (in thousands):

 

   For the Years Ended
December 31,
 
   2025   2024 
Domestic  $(52,478)  $(27,835)
Foreign   (568)   (418)
Net loss before income taxes  $(53,046)  $(28,253)
Schedule of Income Tax Provision (Benefit)

The income tax provision (benefit) for the years ended December 31, 2025 and 2024 consists of the following (in thousands):

 

   For the Years Ended
December 31,
 
   2025   2024 
U.S. federal        
 
Current  $
   $
 
Deferred   (8,425)   (3,564)
State and local          
Current   12    8 
Deferred   1,713    (782)
    (6,700)   (4,338)
Change in valuation allowance   6,710    4,322 
Income Tax Benefit (Provision)  $10   $(16)
Schedule of Reconciliation Between the U.S. Statutory Federal Income Tax Rate and Company’s Effective Rate

The reconciliation between the U.S. statutory federal income tax rate and the Company’s effective income tax rate for the year ended December 31, 2025 is as follows:

 

   For the Years Ended December 31, 2025 
   USD   % 
Pretax Book Income (Loss)   (53,046)     
US Federal Statutory Tax Rate   (11,140)   21%
State income taxes, net of federal benefit          
State Rate Change   2,479    (4.67)%
Valuation Allowance   (1,713)   3.23%
Other   (754)   1.42%
Foreign Tax Effects   119    (0.22%
Effect of Cross-Border Tax Laws   
-
    0.0%
Effect of Changes in Tax Laws or Rates Enacted in the Current Period   
-
    0.0%
Nontaxable or Nondeductible Items          
Acquisition Costs   751    (1.42)%
Cost to Raise Capital   939    (1.77)%
162(m)   1,577    (2.97)%
Warrant Expense   1,476    (2.78)%
Stock Options   583    (1.10)%
Other   494    (0.93)%
Tax Credits   
-
    0.0%
Changes in Valuation Allowances   8,425    (15.88)%
Changes in Unrecognized Tax Benefits   
-
    0.0%
Other Adjustments          
Investment in German Subsidiaries   (1,416)   2.67%
Other   (1,810)   3.43%
Total   10    (0.01)%

The reconciliation between the U.S. statutory federal income tax rate and the Company’s effective income tax rate for the year ended December 31, 2024 is as follows:

 

  

For the
Years Ended

December 31,
2024

 
U.S. federal statutory rate   21.0%
State income taxes, net of federal benefit   2.7%
162(m) Compensation Limit   (9.3)%
Transaction Costs   (2.7)%
Inducement Expense   (5.0)%
Convertible Notes – FV Adjustment   9.6%
Other permanent items   (1.3)%
Foreign income tax rate difference   0.1%
Provision to return adjustments   0.1%
Other   (0.7)%
Rate Change   0.1%
Change in valuation allowance   (15.4)%
Effective Rate   (0.0)%
Schedule of Company’s Deferred Tax Assets and Liabilities

As of December 31, 2025 and 2024, the Company’s deferred tax assets and liabilities consisted of the effects of temporary differences attributable to the following (in thousands):

 

   As of December 31, 
   2025   2024 
Deferred Tax Asset        
Loss carryovers  $46,802   $41,603 
Stock based compensation   2,222    1,828 
Accrued expenses   132    791 
Unrealized gain   2,066    144 
Section 174 capital research   756    1,214 
Other   1,051    702 
           
Total Deferred Tax Asset   53,029    46,282 
Less: valuation allowance   (52,985)   (46,273)
Deferred Tax Asset, Net of Valuation Allowance  $44   $9 
   As of December 31, 
   2025   2024 
Deferred Tax Liabilities        
Intangible assets  $(9)  $(2)
Fixed assets   (35)   (7)
Total deferred tax liabilities   (44)   (9)
Net Deferred Tax Asset (Liability)  $
   $