Income Taxes

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

15. Income Taxes

The components of (loss) income before provision for income taxes for the years ended December 31, 2024 and 2023 were:

	Year Ended December 31,
	2024			2023
United States	$	(38,247	)	$	(29,823	)
Foreign		121			109
Loss before income taxes	$	(38,126	)	$	(29,714	)

The components of the provision for income taxes are as follows:

	Year Ended December 31,
	2024		2023
Current tax provision
Federal	$	—	$	—
State		—		—
Foreign		20		20
Total current tax provision		20		20
Deferred  tax provision
Federal		—		—
State		—		—
Foreign		—		—
Total deferred tax provision		—		—
Total provision for income taxes	$	20	$	20

A reconciliation of the Company's statutory income tax rate to the Company’s effective income tax rate for each reporting period is as follows:

	Year Ended December 31,
	2024			2023
Income at US statutory rate	$	(8,006	)	$	(6,272	)
State taxes, net of federal benefit		(801	)		(497	)
Permanent differences		3,399			2,600
Tax credits		—			(166	)
Change in valuation allowance		5,420			4,289
Other		8			66
Loss before income taxes	$	20		$	20

The provision for income taxes differs from the expense that would result from applying statutory rates to income before income taxes. The differences primarily result from changes in valuation allowance.

Deferred income taxes reflect impact of carryforwards and temporary differences between the amounts of assets and liabilities for financial reporting purposes and such amounts as measured by tax laws. The carryforwards and temporary differences, which give rise to a significant portion of the Company’s deferred tax asset as of December 31, 2024 and 2023, are as follows:

	Year Ended December 31,
	2024			2023
Deferred tax assets:
Federal and state net operating loss carryforwards	$	17,070		$	15,264
Research and Development Credits		551			551
Section 174 Capitalized R&D		3,315			2,887
Lease liability		—			51
Accruals & payables		3,160			17
Other DTA		246			207
Total deferred tax assets		24,342			18,977
Right of use asset		—			(49	)
Other DTL		(1	)		(9	)
Total deferred tax liabilities		(1	)		(58	)
Valuation allowance		(24,341	)		(18,919	)
Net deferred tax assets (liability)	$	—		$	—

As of December 31, 2024 and 2023, the Company is in a net deferred tax asset position before valuation allowance. The future realization of the tax benefits from existing temporary differences and tax attributes ultimately depends on the existence of sufficient future taxable income. In assessing the realization of the deferred tax assets, the Company considers whether deferred tax assets will not be realized. The Company considers projected future taxable income, scheduled reversal of existing deferred tax liabilities, and tax planning strategies in making this assessment. As of December 31, 2024 and 2023, the Company has considered all available evidence, both positive and negative, and determined that it is more likely than not that the Company’s net deferred tax assets will not be realized. Accordingly, the Company maintained a full valuation allowance as of December 31, 2024 and 2023. The change in the valuation allowance for years ended December 31, 2024 and 2023 was an increase of $5,422 and $4,289, respectively.

As of December 31, 2024, the Company had federal net operating loss carryforwards totaling $68,803, which are available to reduce the Company’s future taxes and have an unlimited carryforward period. As of December 31, 2024, the Company had state net operating loss carryforwards totaling $39,687. As of December 31, 2024 and 2023, the Company had federal research and development tax credits of $345 and $345, respectively that generally expire at various dates through 2039. As of December 31, 2024 and 2023, the Company had state research and development tax credits of $261 and $261 that generally expire at various dates through 2039.

The future realization of the net operating loss carryforwards may be limited by the change in ownership rules under Section 382 of the Internal Revenue Code (“Section 382”). Under Section 382, if a corporation undergoes an ownership change (as defined), the corporation’s ability to utilize its net operating loss carryforwards and other tax attributes to offset income may be limited. The Company has not completed a study to assess whether a change of ownership has occurred, or whether there have been multiple ownership changes since its formation. Any limitation may result in expiration of a portion of the net operating loss carryforwards or research and development credit carryforward before utilization.

The Company files income tax returns in the U.S. federal tax jurisdiction and in various state and foreign jurisdictions in which it operates and is therefore subject to tax examination by various taxing authorities. Since the Company is in a loss carryforward position, the Company is generally subject to examination by the U.S. federal, foreign, state and local income tax authorities for all tax years in which a loss carryforward is available. The Company is currently not under examination by the Internal Revenue Service or any other jurisdiction for any tax years. The Company has not recorded any interest or penalties on any unrecognized tax benefits as of December 31, 2024 and 2023.

The Company accounts for uncertain tax positions recognized in the consolidated financial statements following a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit will more likely than not be realized. As of December 31, 2024 and 2023, the Company has not identified any uncertain tax positions. The Company will recognize interest and penalties, if any, related to uncertain tax positions in income tax expense. As of December 31, 2024, no interest or penalties have been accrued.