Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of Loss Before Provision for Income Taxes

Our loss before provision for income taxes for the years ended December 31, 2024 and 2023 consisted of the following (in thousands):

	Year Ended December 31,
	2024			2023
Domestic	$	1,977		$	2,365
Foreign		(96,025	)		(87,596	)
Total	$	(94,048	)	$	(85,231	)

Schedule of Provision for Income Taxes

Our provision for income taxes consists of the following (in thousands):

	Year Ended December 31,
	2024		2023
Current:
Federal	$	703	$	439
State		650		374
Foreign		90		39
		1,443		852
Deferred:
Federal		—		—
State		—		—
Foreign		—		—
		—		—
Total provision for income taxes	$	1,443	$	852

Reconciliation of the Statutory Income Tax Rate to our Effective Income Tax Rate

The reconciliation of the statutory income tax rate to our effective income tax rate is as follows:

	Year Ended December 31,
	2024			2023
Income tax benefit at the statutory rate		21.0	%		21.0	%
Permanent differences		0.9			1.0
Difference in tax rate		1.0			1.0
R&D Deduction		1.0			1.1
Change in valuation allowance		(24.2	)		(24.7	)
Prior period adjustments		(0.7	)		(0.2	)
Other		(0.5	)		(0.2	)
Total		(1.5	)%		(1.0	)%

Schedule of Principal Components of Deferred Tax Assets

The principal components of the Company’s deferred tax assets consisted of the following (in thousands):

	December 31,
	2024			2023
Deferred tax assets:
Net operating loss carryforwards	$	66,726		$	50,343
Equity-based compensation expense		4,865			3,602
Accrued compensation		41			33
ROU Lease Liability		439			526
Capitalized R&D		4,517			3,348
Other		980			529
Total deferred tax assets	$	77,567		$	58,381
Valuation allowance		(77,152	)		(57,902	)
Net deferred tax assets	$	415		$	479
ROU Lease Asset		393			441
Fixed Assets		22			26
Other Liabilities		—			12
Total deferred tax liabilities		415			479
Net deferred tax asset (liability)	$	—		$	—

In 2017, the U.S. enacted the Tax Cuts and Jobs Act (the “2017 Tax Act”), which contained a provision that requires capitalization and amortization of research and development expenses for tax purposes starting in 2022. Previously, these expenses could be deducted in the year incurred. The implementation of this provision increased our deferred tax asset and valuation allowance by approximately $1.2 million and $2.1 million for the years ended December 31, 2024 and 2023.