v3.26.3
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
SCHEDULE OF PROVISION FOR INCOME TAXES

The Company’s provision for income taxes consists of the following:

 

(In thousands)  2025   2024 
   Years Ended December 31, 
(In thousands)  2025   2024 
Current:          
Federal  $(6)  $1 
State   27    21 
Total current   21    22 
Deferred:          
Federal   (1,862)   (897)
State   (235)   (263)
Change in valuation allowance   2,097    1,160 
Total deferred   —    — 
Total income tax expense (benefit)  $21   $22 
SCHEDULE OF PROVISION FOR INCOME TAX DIFFERS FROM THE AMOUNT COMPUTED AT FEDERAL STATUTORY

The Company’s provision for income tax differs from the amount computed by applying the statutory federal income tax rate to income / (loss) before taxes after the adoption of ASU 2023-09 as follows:

 

      -
   Year Ended December 31, 
   2025 
Statutory federal income tax rate   (3,170)   21.0%
State and local income tax, net of federal income tax effect (1)   51    (0.3)
Nontaxable or non-deductible items:          
Convertible debt   754    (5.0)
Warrants   434    (2.9)
Transaction costs   235    (1.6)
Tax credits:          
Research credits   (89)   0.6 
Change in unrecognized tax benefits   2    0.0 
Change in valuation allowance   1,862    (12.3)
Foreign tax effects   -    - 
Effect of changes in tax laws or rates enacted in the current period   -    - 
Effect of cross-border tax laws   -    - 
Other          
Federal NOL RTP   (293)   1.9 
Deferred true-ups   292    (1.9)
Other   (57)   0.4 
Total provision for income taxes   21    (0.1)%

 

(1)State taxes in Texas made up the majority (greater than 50%) of the tax effect in this category.

 

 

The Company’s provision for income tax differs from the amount computed by applying the statutory federal income tax rate to income / (loss) before taxes prior to the adoption of ASU 2023-09 as follows:

 

   December 31, 
   2024 
Statutory federal income tax rate   21.0%
State tax provision   1.1 
Convertible debt   (9.3)
Warrants   (5.6)
Research credits   1.5 
Change in valuation allowance   (8.6)
Other   (0.4)
Total provision for income taxes   (0.3)%
SCHEDULE OF INCOME TAXES PAID NET OF REFUNDS

The following table presents income taxes paid (net of refunds received) for the year ended December 31, 2025, as required by ASU 2023-09:

   December 31, 
   2025 
Cash paid for income taxes, net of refunds:     
Federal   - 
State   - 
Texas   15 
Other jurisdictions   12 
Total   27 
SCHEDULE OF NET DEFERRED TAX ASSETS

As of December 31, 2025 and 2024, the net deferred tax assets consisted of the following:

 

(In thousands)  2025   2024 
   December 31, 
(In thousands)  2025   2024 
Deferred tax assets:          
Accrued expenses  $366   $339 
Research credits   768    716 
Research & experimental capitalization   1,140    2,566 
Inventory   432    403 
Lease liability   1,097    1,208 
Stock compensation   2,147    1,779 
Net operating loss carryforwards   4,679    2,112 
Other   31    8 
Total gross deferred tax assets   10,660    9,131 
Less valuation allowance   (8,928)   (6,832)
Total deferred tax assets   1,732    2,299 
Deferred tax liabilities:          
Property and equipment   (494)   (567)
Intangibles   (38)   (56)
Right-of-use asset   (953)   (1,079)
481(a) adjustment   (247)   (597)
Total deferred tax liabilities   (1,732)   (2,299)
Net deferred tax asset (liability)  $—   $— 
SCHEDULE OF RECONCILIATION OF THE BEGINNING AND ENDING AMOUNT OF THE VALUATION ALLOWANCE

 

(In thousands)  2025   2024 
   December 31, 
(In thousands)  2025   2024 
Valuation allowance at beginning of year  $6,832   $5,672 
Change in valuation allowance   2,096    1,160 
Valuation allowance at end of year  $8,928   $6,832 
SCHEDULE OF RECONCILIATION OF THE BEGINNING AND ENDING AMOUNTS OF UNRECOGNIZED BENEFITS

 

(In thousands)  2025   2024 
   Years ended December 31, 
(In thousands)  2025   2024 
Unrecognized tax benefits at the beginning of year  $164   $126 
Gross increases – current year tax positions   23    38 
Gross increases – prior year tax positions   —    — 
Gross decreases – prior year tax positions   (23)   — 
Unrecognized tax benefits at end of year  $164   $164 
Interest and penalties in year-end balance  $—   $—