Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income Taxes [Abstract]

Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) are as follows:

(in thousands)	Year Ended December 31, 2025			Year Ended December 31, 2024
Federal - current	$	-		$	-
State - current		1			1
Total current		1			1
Federal - deferred		(956	)		(1,389	)
State - deferred		(54	)		(202	)
Change in valuation allowance		1,010			1,591
Total deferred		-			-
Income tax expense (benefit)	$	1		$	1

Income Tax Reconciliation

The Company adopted ASU 2023-09 on a prospective bias beginning with year ended December 31, 2025. A reconciliation of the United States federal statutory income tax rate to our effective income tax rate for the year ended December 31, 2025, is presented accordingly as follows.

(in thousands)	Year Ended December 31, 2025
Income (loss) before income taxes	$	(4,559	)
Tax expense (benefit):
Federal income taxes federal statutory rate	$	(957	)	21.0	%
State and local income tax, net of federal income tax effect		(53	)	1.2
Changes in valuation allowance
Federal and state changes		1,010		(22.2	)
Non-taxable or non-deductible items
Other		1		(0.00	)
Income tax expense (benefit)	$	1		0.0	%

The components of pretax income (loss) and the difference between income taxes computed at the statutory federal rate and the provision for income taxes for the year ended December 31, 2024, is as follows:

(in thousands)	Year Ended December 31, 2024
Income (loss) before income taxes	$	(6,619	)
Tax expense (benefit):
Tax at statutory federal rate	$	(1,391	)
State income taxes		(202	)
Permanent items, tax credits and other adjustments		3
Change in valuation allowance		1,591
Income tax expense (benefit)	$	1

A reconciliation of the United States federal statutory rate to the Company’s effective income tax rate for the year ended December 31, 2024 is as follows:

	Year Ended December 31,  2024
Tax at statutory federal rate		21.0	%
State income taxes		3.0
Permanent items, tax credits and other adjustments		-
Change in valuation allowance		(24.0	)
Effective income tax rate		0.0	%

Calculation of Net Deferred Tax Assets from NOL Carryforwards

The Company’s deferred tax asset, arising from NOL carryforwards, is as follows

(in thousands)	December 31, 2025			December 31, 2024
Deferred tax asset	$	44,385		$	43,375
Valuation allowance		(44,385	)		(43,375	)
Net deferred tax asset recognized	$	-		$	-