INCOME TAXES (Tables)
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12 Months Ended |
Dec. 31, 2025 |
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| INCOME TAXES |
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| Schedule of domestic and foreign loss before income taxes |
| | | | | | | | | | (In thousands) | | 2025 | | 2024 | | 2023 | United States | | $ | (27,671) | | $ | (32,980) | | $ | 144 | Mainland China and Hong Kong | | | (18,200) | | | (5,089) | | | (26,436) | Total | | $ | (45,871) | | $ | (38,069) | | $ | (26,292) |
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| Schedule of deferred income tax assets and liabilities |
| | | | | | | | | December 31, | (In thousands) | | 2025 | | 2024 | Deferred income tax assets: | | | | | | | Net operating loss carryforwards | | $ | 54,610 | | $ | 48,548 | Research and development credit carryforwards | | | 1,153 | | | 1,386 | Intangible assets | | | 5,434 | | | 6,204 | Share-based compensation | | | 2,370 | | | 2,269 | Change in fair value of investments | | | 877 | | | 326 | Capitalized R&D amortization | | | 1,148 | | | 2,296 | Lease liability | | | 763 | | | 939 | Impairment loss of long-term investments | | | 182 | | | 182 | Write down of inventories | | | 1,249 | | | 1,007 | Accrued interest expense | | | 210 | | | 13 | Others | | | 496 | | | 233 | Valuation allowance for deferred income tax assets | | | (67,766) | | | (62,466) | | | $ | 726 | | $ | 937 | | | | | | | | Deferred income tax liabilities: | | | | | | | Right of use asset | | | (637) | | | (873) | Others | | | (89) | | | (64) | | | $ | (726) | | $ | (937) |
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| Schedule of reconciliation of provision for income taxes to the federal statutory rate |
| | | | | | | | For the Year Ended December 31, | | | 2025 | (In thousands) | | Amount | | Percent | Tax benefit at statutory federal rate | | $ | 9,632 | | 21% | Domestic federal: | | | | | | Attribute expiration | | | (2,381) | | (5.2%) | Tax shortfalls from share options | | | (118) | | (0.3%) | Nondeductible expenses | | | (90) | | (0.2%) | Changes in valuation allowance | | | (3,222) | | (7.0%) | Domestic State and local income taxes net of federal effect: | | | | | | Foreign tax effect: | | | | | | Mainland China | | | | | | Tax rate differential | | | 667 | | 1.5% | Attribute expiration | | | (1,059) | | (2.3%) | Nondeductible expenses | | | (926) | | (2.0%) | Research and development bonus deduction | | | 100 | | 0.2% | Others | | | (978) | | (2.1%) | Change in valuation allowance | | | (1,307) | | (2.8%) | Hong Kong | | | | | — | Tax rate differential | | | (193) | | (0.4%) | Changes in valuation allowance | | | (125) | | (0.3%) | | | $ | — | | — |
| | | | | | | (In thousands) | | 2024 | | 2023 | Tax benefit at statutory rate of 21% | | $ | 7,994 | | $ | 5,521 | Attribute expiration | | | (1,899) | | | (28,281) | Tax rate differential | | | (119) | | | 841 | Nondeductible expenses | | | (558) | | | (1,469) | Research and development bonus deduction | | | 100 | | | 121 | Tax shortfalls from share options | | | (4,129) | | | (830) | Others | | | 247 | | | 314 | Change in valuation allowance (1) | | | (1,636) | | | 23,864 | | | $ | — | | $ | 81 |
Change in valuation allowance is as follows:
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| Schedule of valuation allowance |
| | | | | | | | | | (In thousands) | | 2025 | | 2024 | | 2023 | Balance at January 1 | | $ | 62,466 | | $ | 61,281 | | $ | 85,505 | Additions | | | 8,094 | | | 3,535 | | | 4,417 | Decrease from attribute expiration | | | (3,440) | | | (1,899) | | | (28,281) | Foreign currency translation adjustment | | | 646 | | | (451) | | | (360) | Balance at December 31 | | $ | 67,766 | | $ | 62,466 | | $ | 61,281 |
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| Schedule of reconciliation of gross unrecognized tax benefits |
| | | | | | | | | | (In thousands) | | 2025 | | 2024 | | 2023 | Unrecognized tax benefits balance at January 1 | | $ | 558 | | $ | 948 | | $ | 997 | Reductions for tax positions of prior periods | | | (78) | | | (390) | | | (49) | Unrecognized tax benefits balance at December 31 | | $ | 480 | | $ | 558 | | $ | 948 |
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