INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

INCOME TAXES

Schedule of reconciliation of statutory federal income tax rate

	Tax Year ended December 31,
	2024		2023		2022
U.S. federal statutory income tax rate	21.0	%	21.0	%	21.0	%
State and local taxes, net of federal benefit	2.6	%	4.2	%	(0.9)	%
Nondeductible expenses	(4.6)	%	0.5	%	(2.3)	%
Research and development credits	(0.5)	%	(0.3)	%	—	%
Tax rate change and true-up	(1.3)	%	0.8	%	(1.5)	%
Net operating loss	(0.6)	%	(0.6)	%	—
Change in valuation allowance	(16.6)	%	(25.6)	%	(16.3)	%
Effective income tax rate	—	%	—	%	—	%

Schedule of deferred tax assets

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets were as follows (in thousands):

	December 31,
	2024		2023
Deferred tax assets:
Net operating loss carryforwards	$	106,645	$	82,179
Research and development credits		2,699		2,923
Share-based compensation		1,788		2,538
Accruals		563		1,161
Interest expense		12,677		4,451
Lease liability		731		782
Capitalized start-up costs		6,279		—
Capitalized R&D costs		5,445		3,790
Other temporary differences		1,393		1,031
Gross deferred tax assets		138,220		98,855
Less: Valuation allowance		(133,990)		(94,472)
Total deferred tax assets	$	4,230	$	4,383
Deferred tax liabilities:
Capitalized software	$	(103)	$	(1,038)
Fixed assets		(646)		—
Right-of-use asset		(541)		(679)
Prepaid commission		(2,940)		(2,666)
Gross deferred tax liabilities		(4,230)		(4,383)
Net deferred taxes	$	—	$	—

Summary of changes in valuation allowance

	Year ended December 31,
	2024		2023
Balance at the beginning of the year	$	94,472	$	86,733
Amounts acquired through purchase accounting		32,284		—
Amounts charged to expense		7,234		7,739
Balance at the end of the year	$	133,990	$	94,472

Summary of net operating loss carryforwards and tax credits

The following table summarizes carryforwards of federal net operating losses and tax credits as of December 31, 2024 (in thousands):

			Expiration
	Amount		Beginning in
Federal net operating losses	$	424,377	2025
State net operating losses	$	355,165	2025
Research and development credits	$	2,699	2025