Note 17 - Income Taxes |
6 Months Ended |
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Jun. 30, 2026 | |
| Notes to Financial Statements | |
| Income Tax Disclosure [Text Block] |
Note 17 Income Taxes
For the three and six months ended June 30, 2026, the Company recorded an income tax provision of $3.0 thousand and $5.0 thousand, respectively. The Company did record an income tax provision for the and six months ended June 30, 2025. The effective tax rate was 0.0% for the six months ended June 30, 2026 compared to 0.0% for the six months ended June 30, 2025. The difference between the effective tax rate and the U.S. statutory federal rate of 21% is primarily attributable to the full valuation allowance against the Company’s U.S. net deferred tax assets, which prevents recognition of a tax benefit on U.S. pretax losses, and to Canadian income tax expense on the operations of Canadian Stone Industries Inc. at the applicable Canadian statutory rate. The provision recorded in each 2026 period consists of Canadian income taxes.
The Company continues to maintain a full valuation allowance against its U.S. net deferred tax assets, as it is not more likely than not that the Company will realize these deferred tax assets in future periods based on available positive and negative evidence, including the Company's recent history of losses. The deferred tax liability of $19.0 thousand and $20.0 thousand at June 30, 2026 and December 31, 2025 relates to the Company's Canadian operations and is not subject to the U.S. valuation allowance.
The Company applies an estimated annual effective tax rate to year-to-date pretax results in accordance with ASC 740-270. As of June 30, 2026 the Company had no unrecognized tax benefits and no accrued interest or penalties related to uncertain tax positions.
The Company has substantial U.S. federal net operating loss carryforwards. Utilization of those carryforwards may be limited under Section 382 of the Internal Revenue Code if the Company experiences an ownership change as defined in that section. Shares of common stock outstanding increased significantly during the six months ended June 30, 2026 through conversions of the Senior Secured Convertible Notes, issuances under the Equity Line of Credit and the restricted stock awards described in Note 15, and additional shares were issued after the balance sheet date as described in Note 19.
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