Note 15 - Income Taxes

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Income Tax Disclosure [Text Block]

(15) Income Taxes

The provision for income taxes reflects current taxes and deferred taxes. The effective tax rate for each of the years ended  December 31, 2024 and 2023 was 0%. The Company continues to provide for a valuation allowance to offset its net deferred tax assets until such time it is more likely than not the tax assets or portions thereof will be realized.

Components of loss before income taxes are as follows:

	Year Ended December 31,
	2024			2023
Domestic	$	(27,044	)	$	(35,039	)
International		(11,922	)		(10,716	)
Loss before income taxes	$	(38,966	)	$	(45,755	)

Components of the provision (benefit) for income taxes allocated to continuing operations include the following:

	Year Ended December 31,
	2024			2023
Current:
Federal	$	5		$	(141	)
State		(13	)		(9	)
Foreign		(36	)		(37	)
Sub-total	$	(44	)	$	(187	)
Deferred:
Federal	$	—		$	(17	)
State		—			—
Foreign		—			—
Sub-total	$	—		$	(17	)
Total	$	(44	)	$	(204	)

The reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate is as follows:

	Year Ended						Year Ended
	December 31,						December 31,
	2024			%			2023			%
Income taxes computed at statutory rates	$	8,183			(21	)%	$	9,609			(21	)%
(Increases) decreases resulting from:
Change in valuation allowance		(9,319	)		24	%		(11,716	)		26	%
NOL surrendered for refundable tax credit		(1,355	)		4	%		(1,607	)		4	%
Foreign research deductions and credits		650			(2	)%		803			(2	)%
Federal and state research and experimentation credits		1,288			(3	)%		1,412			(3	)%
State income taxes, net of federal tax benefit		(139	)		—	%		468			(1	)%
Other		648			(2	)%		827			(3	)%
Total	$	(44	)		—	%	$	(204	)		—	%

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of significant items comprising the Company’s deferred tax assets and deferred tax liabilities are as follows:

	December 31,			December 31,
	2024			2023
Deferred tax assets:
Federal and state net operating losses	$	79,856		$	77,201
Federal and state research and experimentation credits		13,610			12,406
Research and experimental costs		12,806			9,458
Stock based compensation		1,822			1,474
ASC 842 - lease liabilities		1,303			1,468
Accrued compensation		324			610
Fixed asset differences		191			185
Intangible asset differences		4			—
Other		264			59
Total gross deferred tax assets		110,180			102,861
Less valuation allowance		(104,361	)		(95,256	)
Net deferred tax assets	$	5,819		$	7,605
Deferred tax liabilities:
Patent expenditures	$	(888	)	$	(1,096	)
ASC 842 - right of use assets		(795	)		(897	)
Fixed asset differences		(4	)		(9	)
Intangible asset differences		(4,132	)		(5,603	)
Total gross deferred tax liabilities	$	(5,819	)	$	(7,605	)
Total net deferred tax assets and liabilities	$	—		$	—

The Company had a valuation allowance of $104,361 and $95,256 on deferred tax assets as of  December 31, 2024 and 2023, respectively, an increase of $9,105 during the year ended December 31, 2024.

As of December 31, 2024, the Company has federal, state, and foreign net operating loss carryforwards of $257,535, $173,657, and $70,922 respectively, which have a carryforward of 5 years to indefinite depending on the jurisdiction.

As of  December 31, 2024, the Company has federal research and experimental tax credits of $14,746, which have a carryforward of 20 years.

A summary reconciliation of the Company’s uncertain tax positions is as follows:

	Year Ended December 31,
	2024			2023
Beginning balance	$	1,063		$	1,046
Addition for current year tax positions		85			94
Addition for prior year tax positions		—			—
Reduction for prior year positions		(11	)		(77	)
Reduction for prior year positions resolved during the current year		—			—
Ending balance	$	1,137		$	1,063

As of December 31, 2024, the total unrecognized tax benefits, if recognized, would not materially affect the Company’s effective tax rate.

The Company records accrued interest and penalties associated with uncertain tax positions in the “provision for income taxes” in the Consolidated Statements of Operations. For the years ended  December 31, 2024 and 2023, the Company recognized accrued interest and penalties associated with uncertain tax positions of $0 and $0, respectively. The Company does not anticipate any of its unrecognized benefits will significantly increase or decrease within the next 12 months.

The Company’s open tax years subject to examination in the U.S. federal jurisdiction are 2021 through 2023, in applicable state jurisdictions for the tax years 2021 through 2023, and in applicable foreign jurisdictions for tax year 2023. To the extent allowed by law, the taxing authorities may have the right to examine prior periods where net operating losses or tax credits were generated and carried forward, and make adjustments up to the amount of the net operating loss or tax credit carryforward.