Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Reconciliation of Effective Tax Rate |
The reconciliation of income taxes computed at the federal statutory rate to the Company’s effective income tax rate for the year ended December 31, 2025, prepared in accordance with ASC 740 as amended by ASU 2023-09, is as follows (in thousands, except percentages):
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31, 2025 |
|
| |
|
Amount |
|
|
% |
|
| Income tax computed at the federal statutory tax rate |
|
$ |
(12,221 |
) |
|
|
21.0 |
% |
| Tax credits |
|
|
(1,220 |
) |
|
|
2.1 |
|
| Change in valuation allowance |
|
|
11,966 |
|
|
|
(20.6 |
) |
| Nontaxable or nondeductible items |
|
|
|
|
|
|
|
|
| Other non-deductible permanent items |
|
|
(93 |
) |
|
|
0.2 |
|
| Limitation on officer compensation |
|
|
425 |
|
|
|
(0.7 |
) |
| Stock compensation |
|
|
1,142 |
|
|
|
(2.0 |
) |
| Other |
|
|
1 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
| Income tax expense (benefit) |
|
$ |
— |
|
|
|
— |
% |
|
|
|
|
|
|
|
|
| The reconciliation of income taxes computed at the federal statutory rate to the Company’s effective income tax rate for the year ended December 31, 2024 (prior to adoption of ASU 2023-09) was as follows (in thousands, except percentages):
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31, 2024 |
|
| |
|
Amount |
|
|
% |
|
| Income tax computed at the federal statutory tax rate |
|
$ |
(13,726 |
) |
|
|
21.0 |
% |
| State and local income taxes, net of federal benefit |
|
|
(4,126 |
) |
|
|
6.3 |
|
| Tax credits |
|
|
(4,347 |
) |
|
|
6.7 |
|
| Change in valuation allowance |
|
|
20,544 |
|
|
|
(31.5 |
) |
| Other permanent differences |
|
|
(31 |
) |
|
|
— |
|
| Stock compensation |
|
|
607 |
|
|
|
(0.9 |
) |
| Uncertain tax position |
|
|
1,065 |
|
|
|
(1.6 |
) |
| Other |
|
|
14 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
| Income tax expense (benefit) |
|
$ |
— |
|
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
| Schedule of Significant Components of Deferred Income Taxes |
Significant components of deferred tax assets and liabilities as of December 31, 2025 and 2024 were as follows (in thousands):
|
|
|
|
|
|
|
|
|
| |
|
As of December 31, |
|
| |
|
2025 |
|
|
2024 |
|
| Deferred tax assets: |
|
|
|
|
|
|
|
|
| Net operating loss carryforwards |
|
$ |
45,574 |
|
|
$ |
27,618 |
|
| Research tax credits |
|
|
10,124 |
|
|
|
8,313 |
|
| Lease liability |
|
|
13,769 |
|
|
|
13,335 |
|
| Capitalized R&D |
|
|
15,726 |
|
|
|
20,155 |
|
| Intangible assets |
|
|
39 |
|
|
|
44 |
|
| Other, net |
|
|
2,268 |
|
|
|
2,637 |
|
|
|
|
|
|
|
|
|
|
| Total deferred tax assets |
|
|
87,500 |
|
|
|
72,102 |
|
| Less valuation allowance |
|
|
(75,150 |
) |
|
|
(58,844 |
) |
|
|
|
|
|
|
|
|
|
| Net deferred tax assets |
|
|
12,350 |
|
|
|
13,258 |
|
| Deferred tax liabilities: |
|
|
|
|
|
|
|
|
| ROU asset |
|
|
(12,259 |
) |
|
|
(13,169 |
) |
| Property and equipment |
|
|
(91 |
) |
|
|
(89 |
) |
|
|
|
|
|
|
|
|
|
| Total deferred tax liabilities |
|
|
(12,350 |
) |
|
|
(13,258 |
) |
|
|
|
|
|
|
|
|
|
| Net deferred tax assets |
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
| Schedule of Activity in Valuation Allowance |
Activity in the valuation allowance for the years ended December 31, 2025 and 2024 was as follows (in thousands):
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31, |
|
| |
|
2025 |
|
|
2024 |
|
| Balance, beginning of period |
|
|
58,844 |
|
|
|
38,323 |
|
| Charged to federal income tax expense |
|
|
11,966 |
|
|
|
14,047 |
|
| Charged to state income tax expense |
|
|
4,324 |
|
|
|
6,497 |
|
| Charged (credited) to other comprehensive loss |
|
|
16 |
|
|
|
(23 |
) |
|
|
|
|
|
|
|
|
|
| Balance, end of period |
|
|
75,150 |
|
|
|
58,844 |
|
|
|
|
|
|
|
|
|
|
|
| Summary of Net Operating Loss Carryforward |
As of December 31, 2025 and 2024, federal net operating loss (“NOL”) carryforwards, state NOL carryforwards, and research and development tax credit carryforwards consisted of the following (in thousands):
|
|
|
|
|
|
|
|
|
| |
|
As of December 31, |
|
| |
|
2025 |
|
|
2024 |
|
| Federal NOL carryforwards |
|
$ |
161,402 |
|
|
$ |
91,864 |
|
| State NOL carryforwards |
|
$ |
231,270 |
|
|
$ |
183,313 |
|
| Federal research and development tax credit carryforwards |
|
$ |
9,294 |
|
|
$ |
7,667 |
|
| State research tax credit carryforwards |
|
$ |
5,850 |
|
|
$ |
4,853 |
|
|
| Summary of Gross Unrecognized Tax Benefits |
Activity related to the Company’s gross unrecognized tax benefits for the years ended December 31, 2025 and 2024 was as follows (in thousands):
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31, |
|
| |
|
2025 |
|
|
2024 |
|
| Balance at beginning of period |
|
$ |
9,212 |
|
|
$ |
8,048 |
|
| Increase related to current year positions |
|
|
656 |
|
|
|
1,164 |
|
|
|
|
|
|
|
|
|
|
| Balance at the end of the year |
|
$ |
9,868 |
|
|
$ |
9,212 |
|
|
|
|
|
|
|
|
|
|
|