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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

The provision for income tax consisted of the following:


(in thousands)	2025		2024
Current:
Federal	$	—	$	—
State	19		(4)
Foreign	44		(263)
	63		(267)

Deferred:
Federal	(54,770)		(21,218)
State	(24,909)		(10,013)
Foreign	(435)		(504)
	(80,114)		(31,735)
Valuation allowance	80,114		31,735
	—		—

	$	63	$	(267)

Schedule of Components of Losses Before Income Taxes, by Taxing Jurisdiction

The components of losses before income taxes, by taxing jurisdiction, were as follows for the years ended December 31:


(in thousands)	2025		2024
U.S.	$	(388,275)	$	(324,929)
Foreign	(8,744)		(31,185)
	$	(397,019)	$	(356,114)

Schedule of Federal Income Tax Rate

The following adjustments account for these differences for the years ended December 31, 2025, and 2024:

Upon adoption of ASU 2023-09, Improvements to Income Tax Disclosures, as described in Note 1, Nature of Business and Organization, Basis of Presentation, and Summary of Significant Accounting Policies, the reconciliation of taxes at the federal statutory rate to our provision for (benefit from) income taxes for the year ended December 31, 2025 was as follows (in thousands, except for percentages):


	2025
Expected Federal Income Tax (benefit) at Statutory rate	$	(83,374)	21.0	%

State and local income Taxes, net of fed effects1
State income taxes (net of federal benefit)	(19,638)		5.0	%
Changes in State Valuation Allowance	19,651		(5.0)	%

Foreign tax effects2
Foreign Tax Rate Difference	198		(0.1)	%
Expiration of Tax Attributes	866		(0.2)	%
Other	(470)		0.1	%
Changes in Foreign Valuation Allowance	1,172		(0.3)	%
Changes in Valuation Allowance	59,053		(14.9)	%

Nontaxable or Nondeductible Items
Fair value debt adjustments	12,142		(3.1)	%
Disallowed Interest	7,581		(1.9)	%
Non-Controlling Interest	944		(0.2)	%
Goodwill Impairment	935		(0.2)	%
Other permanent differences	868		(0.2)	%

Changes in Unrecognized Tax Benefits	135		—	%

Effective Tax Rate	$	63	—	%

(1) The tax effect in this category reflects state and local taxes in California.

(2) The tax effect in this category primarily reflects income taxes in China and U.A.E.

The reconciliation of taxes at the federal statutory rate to Company’s provision for (benefit from) income taxes for the year ended December 31, 2024 in accordance with the guidance prior to the adoption of ASU 2023-09 was as follows:


	2024
Federal income tax expense	21.0	%
State income taxes (net of federal benefit)	2.3	%
Other permanent differences	(1.4)	%
Fair value debt adjustments	(10.3)	%
Disallowed interest	(1.8)	%
Foreign tax rate difference	0.1	%
Prior year true-up on deferred taxes	(0.2)	%
Return-to-provision adjustment	(1.3)	%
Uncertain tax benefit	0.8	%
Expiration of tax attributes	(0.3)	%
Valuation allowance	(9.0)	%
	0.1	%

Schedule of Cash Paid for Income Taxes, Net of Refunds

Upon adoption of ASU 2023-09, Improvements to Income Tax Disclosures, as described in Note 1, Nature of Business and Organization, Basis of Presentation, and Summary of Significant Accounting Policies, cash paid for income taxes, net of refunds, during the year ended December 31, 2025 was as follows (in thousands):


	2025
Federal	$	—
State
California	14
Foreign	—
Total cash paid for income taxes, net of refunds	$	14

Schedule of Deferred Tax Assets And Deferred Tax Liabilities

The tax effects of temporary differences for the years ended December 31, 2025, and 2024, that give rise to significant portions of the deferred tax assets and deferred tax liabilities are provided below:


(in thousands)	2025		2024
Deferred Tax Assets:
Net operating losses (“NOL”)	$	479,820	$	411,244
Research and development credits	4,239		4,239
Accrued liabilities and reserves	23,063		25,581
Construction in progress - Impairment	3,001		—
Depreciation & impairment	19,748		—

Amortization	7,724		8,803
Deposits - Impairment	2,676		—
Capitalized R&D expense	27,266		53,125
Stock-based compensation	1,186		450
Transaction costs	25		35
Other	275		379
Gross deferred tax assets	569,023		503,856
Valuation allowance	(537,852)		(457,738)
Deferred tax assets, net of valuation allowance	31,171		46,118
Deferred Tax Liabilities:
Depreciation	—		(20,174)
Indefinite-lived Intangible	(945)
State taxes	(31,133)		(25,944)
Gross deferred tax liabilities	(32,078)		(46,118)

Net deferred tax assets (liabilities)	$	(907)	$	—

Schedule of Unrecognized Tax Benefits

The aggregate change in the balance of unrecognized tax benefits for the years ended December 31, 2025, and 2024, is as follows:


(in thousands)	2025		2024
Beginning balance	$	10,087	$	12,972
Increase related to current year tax positions	135		389
Decrease related to prior year positions	—		(3,274)
Ending balance	$	10,222	$	10,087