Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Taxes

Schedule of components of income taxes

For the years ended December 31, 2024 and 2023, the Company’s provision for income tax consisted of (in thousands):

	Year Ended December 31,
	2024		2023
Current:
Federal	$	52	$	—
State		38		134
Foreign		—		—
Total Current	$	90	$	134
Deferred:
Federal	$	21	$	40
State		(151)		(190)
Foreign		—		—
Total Deferred	$	(130)	$	(150)
Provision for income taxes	$	(40)	$	(16)

Schedule of reconciliation of statutory federal income tax rate

	Year Ended December 31,
	2024		2023
Tax at statutory federal rate	21.0	%	21.0	%
State taxes, net of federal benefit	3.6		1.7
Stock-based compensation	34.8		0.6
IRC section 162(m) limitation	29.0		3.9
R&D tax credits	(564.7)		—
Change in valuation allowance	486.1		(28.5)
Other	(15.1)		1.1
Provision for income taxes	(5.3)	%	(0.2)	%

Schedule of tax effects of temporary differences and carryforwards

The tax effects of temporary differences and carryforwards that give rise to significant portions of the deferred tax assets are as follows (in thousands):

	Year Ended December 31,
	2024		2023
Deferred tax assets:
Net operating loss carryforwards	$	20,564	$	22,068
Inventory		462		287
Accruals		366		863
Depreciation and amortization		9		13
Research and experimental credits		3,995		—
Research and experimental expenditures		6,412		4,728
Stock-based compensation		428		268
Right of use liability		1,045		1,245
Gross deferred tax assets		33,281		29,472
Valuation allowance		(31,343)		(27,748)
Deferred tax assets		1,938		1,724
Deferred tax liabilities:
Right of use asset		(1,024)		(1,226)
Other		(646)		(348)
Deferred tax liabilities		(1,670)		(1,574)
Net deferred tax assets	$	268	$	150

Summary of net valuation allowance

	Year Ended December 31,
	2024		2023
Valuation Allowance at beginning of year		(27,748)		(30,328)
Current Year Change		(3,595)		2,580
Valuation Allowance at end of year		(31,343)		(27,748)

Schedule of changes in the Company's gross unrecognized tax benefits

A summary of changes in the Company’s gross unrecognized tax benefits for the years ended December 31, 2024 and 2023 was as follows (in thousands):

	Year Ended December 31,
	2024		2023
Unrecognized tax expense, beginning of the year	$	473	$	105
Decrease related to prior year tax positions		—		—
Increase related to prior year tax positions		662		368
Increase related to current year tax positions		254		—
Unrecognized tax expense, end of year	$	1,389	$	473