INCOME TAXES |
3 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | INCOME TAXES The income tax benefit of $0.04 million and income tax provision of $0.03 million was recorded for the three months ended March 31, 2026 and 2025, respectively. The Company’s effective tax rate was (3.21%) and (0.60%) for the three months ended March 31, 2026 and 2025, respectively. The benefit for the three months ended March 31, 2026 relates predominately to year to date income but forecasted pre-tax loss for the year. The provision for the three months ended March 31, 2025 relates predominately to state taxes. The Company’s effective tax rate for the three months ended March 31, 2026 and 2025 is different than the statutory rate primarily due to changes in the Company’s valuation allowance. As of December 31, 2025, the Company had U.S. federal net operating loss carryforward of $234.2 million that expire in 2036 and 2037 and includes $211.7 million that have an unlimited carryforward period. As of December 31, 2025, the Company has U.S. state and local net operating loss carryforwards of $69.1 million that expire from 2026 to 2045. In evaluating its ability to realize its net deferred tax assets, the Company considered all available positive and negative evidence, such as past operating results, forecasted earnings, prudent and feasible tax planning strategies, and the future realization of the tax benefits of existing temporary differences. The Company remains in a cumulative tax loss position for the 36 months ended March 31, 2026, and determined that it is more likely than not that its net deferred tax assets will not be realized. The Company continues to maintain a full valuation allowance as of March 31, 2026 and December 31, 2025.
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