Annual report [Section 13 and 15(d), not S-K Item 405]

Provision for Income Taxes (Tables)

v3.25.4
Provision for Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Effective Income Tax Rate Reconciliation
Upon adoption of ASU 2023-09, Improvements to Income Tax Disclosures, as described in Note 2, Summary of Significant Accounting Policies, the Company’s effective income tax rate reconciliation for the year ended December 31, 2025 was as follows:
(in thousands, except for percentages)
Federal statutory rate $ (2,453) 21.0  %
Domestic federal
Tax credits
Foreign tax credits (10) 0.1  %
Nontaxable or nondeductible items, net (141) 1.2  %
Stock-based compensation 1,529  (13.1) %
Changes in valuation allowances 1,080  (9.3) %
Domestic state and local income taxes, net of federal effect 18  (0.2) %
Foreign tax effects - China 10  (0.1) %
Provision for income taxes $ 33  (0.3) %
The Company’s effective income tax rate reconciliation for the year ended December 31, 2024 in accordance with the guidance prior to the adoption of ASU 2023-09 was as follows:
Federal statutory rate 21.0  %
State income taxes, net of federal tax benefit (0.1) %
Stock-based compensation (11.7) %
Remeasurement of derivative liabilities 7.6  %
Other (0.6) %
Change in valuation allowance (16.3) %
Provision for income taxes (0.1) %
Schedule of Deferred Tax Assets and Liabilities
The components of net deferred tax assets are as follows for the periods presented (in thousands):
December 31,
2025 2024
Deferred tax assets:
Net operating loss carryforwards $ 134,244  $ 131,563 
Deferred revenue 1,179  1,546 
Inventory write-downs and uniform capitalization 752  873 
Operating lease liabilities 3,155  3,557 
Accruals and other reserves 379  729 
Stock-based compensation 2,243  4,107 
Business interest carryforwards 10,057  10,127 
Depreciation and amortization 393  817 
Other 162  223 
Total deferred tax assets 152,564  153,542 
Less: valuation allowance (150,240) (150,486)
Total deferred tax assets, net of valuation allowance 2,324  3,056 
Deferred tax liabilities:
Operating lease right-of-use assets (2,324) (3,056)
Total deferred tax liabilities (2,324) (3,056)
Net deferred tax assets $ —  $ — 
Schedule of Valuation Allowance
The following summarizes the activity related to valuation allowances on deferred tax assets for the periods presented:
December 31,
2025 2024
Valuation allowance, as of beginning of year $ 150,486  $ 145,711 
Valuation allowance established 1,041  5,346 
Changes to existing valuation allowances (1,287) (571)
Valuation allowance, as of end of year $ 150,240  $ 150,486