INCOME TAXES |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | NOTE 15. INCOME TAXES Due to its current operating losses, the Company recorded no provision for or benefit from income taxes during the three and six months ended June 30, 2026 and 2025. Accordingly, the Company’s effective tax rate was 0% for each of those periods. During the three and six months ended June 30, 2026, the Company recognized discrete tax items related to shortfalls from share-based compensation. The tax effects of these items were fully offset by corresponding changes in the valuation allowance and, therefore, did not result in income tax expense or benefit for the periods presented. Following the January 2026 Orbit Change of Control and Lyocon Acquisition, the Company has Italian operations; however, the related pre-tax income and loss were not significant for the three and six months ended June 30, 2026, and the Company’s tax activity remained limited to U.S. federal and state jurisdictions. In connection with the Lyocon Acquisition, the Company recognized a deferred tax liability of approximately $173,000 primarily related to differences between the financial reporting values and tax bases of acquired indefinite-lived intangible assets. The deferred tax liability was recorded as part of the acquisition-date purchase accounting, with a corresponding increase to goodwill. Because the related temporary differences do not have a predictable reversal date, the liability was not considered a source of future taxable income in evaluating the realizability of certain deferred tax assets. Due to the Company’s history of cumulative losses and after considering all the available objective evidence, management concluded that it is not more likely than not that all of the Company’s net deferred tax assets will be realized in the future. Accordingly, the Company’s deferred tax assets, which include net operating loss (“NOL”) carryforwards and tax credits related primarily to research and development, continue to be subject to a valuation allowance as of June 30, 2026. The Company expects to continue to maintain a full valuation allowance until there is sufficient evidence to support recoverability of its deferred tax assets. Utilization of the NOL carryforwards and credits may be subject to a substantial annual limitation due to the ownership change limitations provided by Section 382 and Section 383 of the Internal Revenue Code of 1986, as amended, and similar state provisions. Generally, in addition to certain entity reorganizations, the limitation applies when one or more "5-percent stockholders" increase their ownership, in the aggregate, by more than 50 percentage points over a 36-month testing period, or beginning the day after the most recent ownership change, if shorter. The Company has determined that a Section 382 change in ownership occurred during 2023. As a result of this change in ownership, we expect that certain of the Company's NOLs may not be utilized in the future to offset future taxable income or tax liabilities. The amount of the annual limitation is determined based on the value of the Company immediately prior to the ownership change. However, due to the full valuation allowance recorded as of June 30, 2026, the limitation does not affect the Company's results of operations for the periods presented. |