v3.26.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2025
Income Taxes [Abstract]  
Schedule of Effective Tax Rate and the Federal Statutory Income Tax Rate

The following table presents the principal reasons for the difference between the effective tax rate and the federal statutory income tax rate (in thousands):

 

   Year Ended
December 31, 2025
 
Pretax income (loss)   21.00%  $(6,588)
State tax, net of federal benefit          
California   4.49    (1,409)
Permanent differences          
Stock-based compensation   (0.60)   187 
Transaction costs   (9.70)   3,041 
Unrealized gain on warranty liability   0.60    (188)
Other permanent differences   (0.02)   5 
Prior year true-up on deferred taxes   2.21    (694)
Tax credits          
Research and development tax credits   (0.37)   117 
Change of valuation allowance   (17.61)   5,529 
Other        
Effective income tax rate   %  $ 

 

The reconciliation of the U.S. statutory income tax rate to our effective tax rate for Income from continuing operations, prior to the adoption of ASU 2023-09 and as previously disclosed, follows: 

 

   Year Ended
December 31, 2024
 
Pretax income/(Loss)   21.00%  $(1,941)
State Tax, net of federal benefit   14.57    (1,347)
Permanent difference   (0.06)   6 
PY true-up on deferred taxes   0.32    (30)
Change of Valuation Allowance   (35.83)   3,312 
Other        
Effective Income Tax Rate   %  $ 
Schedule of Provision for Income Taxes

The components of the provision for income taxes are as follows (in thousands):

 

   Year Ended
December 31,
 
   2025   2024 
Current:        
Federal  $   $ 
State        
         
Deferred:          
Federal   (3,745)   (1,607)
State and local   (1,784)   (1,705)
    (5,529)   (3,312)
 Less: Change in valuation allowance   5,529    3,312 
 Income tax provision  $   $ 
Schedule of Deferred Tax Assets

Significant components of the Company’s deferred tax assets as of December 31, 2025 and 2024 were as follows (in thousands):

 

   Year Ended
December 31,
 
   2025   2024 
Deferred tax assets:        
Accrued expenses and other  $402   $70 
Book over tax depreciation   7    7 
Stock-based compensation   52    52 
Convertible notes   (201)   93 
Capitalized R&D and trademarks   138    1,527 
Unrealized gain/loss oncrypto assets   155     
Net operating loss carryforward   38,143    32,195 
R&D credit carryforward   3,393    3,511 
Capitalized start-up costs   895     
Other        
    42,984    37,455 
Less: Valuation allowance   (42,984)   (37,455)
Total deferred tax assets:  $   $