Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income Taxes

Schedule of loss before income tax (expense) benefit

	Year ended December 31,
	2025		2024		2023
Domestic	$	(39,157)	$	(38,600)	$	(47,203)
Foreign		556		615		539
Total loss before income tax (expense) benefit	$	(38,601)	$	(37,985)	$	(46,664)

Schedule of components of the company's current and deferred income tax expense or benefit

Components of the Company’s current and deferred income tax expense or benefit consisted of the following (in thousands):

	Year ended December 31,
Current taxes:	2025		2024		2023
U.S. Federal
State	$	—	$	—	$	—
Foreign		(86)		—		—
Total current income tax expense		(86)		—		—
Deferred taxes:
U.S. Federal
State		—		—		—
Foreign		(144)		144
Total deferred income taxes		(144)		144		—
Total income tax (expense) benefit	$	(230)	$	144	$	—

Summary of Significant components of the Company's deferred tax assets

Significant components of the Company’s deferred tax assets for federal income taxes consisted of the following (in thousands):

	December 31,
	2025		2024
Deferred tax assets
Net operating loss carryforwards	$	75,492	$	66,265
Capitalized research and development expenses		4,451		6,185
Stock-based compensation		1,590		1,604
Accrued expenses and other		1,160		1,193
Lease liability		486		478
Research and development credits		1,038		830
Inventory reserve		295		432
Interest expense carryforward		1,620		691
Gross deferred tax asset before valuation allowance		86,132		77,678
Less: valuation allowance		(85,523)		(76,782)
Total deferred tax asset		609		896
Deferred tax liabilities
Depreciation and amortization		(244)		(326)
Right of use asset		(365)		(430)
Gross deferred tax liability		(609)		(756)
Net deferred tax asset	$	—	$	140

Schedule of Company's net operating loss (NOL) carryforwards

The Company’s net operating loss (“NOL”) carryforwards for federal and state income tax purposes consisted of the following (in thousands):

	December 31,
	2025		2024
NOL carryforwards
Federal	$	304,094	$	266,665
State		244,454		218,944

Schedule of reconciliation of income tax (expense) benefit

A reconciliation of income tax (expense) benefit at the statutory federal income tax rate and as reflected in the consolidated financial statements is as follows ($ in thousands, except percentages):

		Year ended December 31,
		2025				2024
U.S. Statutory Tax Rate	$	8,105	(21.0)	%	$	7,977	(21.0)	%
State and Local Income Taxes, Net of Federal Income Tax Effect *		(254)	0.7			4,747	(12.5)
Foreign Tax Effects
United Kingdom
Statutory tax rate difference between United Kingdom and United States		(39)	0.1			(25)	0.1
Change in valuation allowance		—	—			339	(0.8)
Other		—	—			—	—
Germany
Statutory tax rate difference between Germany and United States		30	(0.1)			—	—
Change in valuation allowance		—	—			—	—
Other		—	—			—	—
Effect of Changes in Tax Laws or Rates Enacted in the Current Period
Effect of Cross-Border Tax Laws		(218)	0.6			(128)	0.3
Tax Credits		206	(0.5)			—	—
Change in Valuation Allowances		(7,315)	18.9			(11,558)	30.4
Nontaxable or Nondeductible Items		(177)	0.4			(321)	0.8
Changes in Unrecognized Tax Benefits		—	—			—	—
Other Adjustments
Stock Compensation		(568)	1.5			(887)	2.3
Actual income tax (expense) benefit effective tax rate	$	(230)	0.6	%	$	144	(0.4)	%

* The following states made up the majority (greater than 50%) of the tax effect in this category: California, Colorado, Florida, Georgia, North Carolina, New York and Pennsylvania.