Note 14 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Summary of Components of Loss Before Income Taxes by U.S. and Foreign Jurisdictions

The components of loss before income taxes by U.S. and foreign jurisdictions are as follows (in thousands):

	Year Ended December 31,
	2025			2024
Loss before income tax:
United States	$	(104,428	)	$	(79,989	)
Foreign		-			(438	)
Total	$	(104,428	)	$	(80,427	)

Schedule of Expense (Benefit) for Income Taxes

The expense (benefit) for income taxes for the years ended December 31, 2025 and 2024 are as follows (in thousands):

	Year Ended December 31,
	2025			2024
Current expense (benefit):
Federal	$	-		$	-
State		-			-
Foreign		-			-
Total current expense (benefit)		-			-
Deferred benefit:
Federal		(420	)		-
State		(373	)		(2,097	)
Foreign		-			-
Total deferred income tax benefit:		(793	)		(2,097	)
Total income tax benefit:	$	(793	)	$	(2,097	)

Reconciliation of Effective Rate

The following table is a reconciliation of the U.S. federal statutory rate to the Company’s effective rate for the year ended December 31, 2025 in accordance with the guidance in ASU No. 2023-09 (in thousands):

	December 31, 2025
Income tax at U.S. statutory rate	$	(21,930	)	21.1	%
State income taxes, net of federal benefit1		(373	)	0.4	%
Foreign tax effects		-		-
Tax credits:
U.S. federal R&D tax credits		(2,867	)	2.7	%
Change in valuation allowance		19,086		(18.4	)%
Nontaxable or nondeductible items:
Share-based compensation		1,185		(1.1	)%
Net operating loss expirations		3,752		(3.6	)%
Other		202		(0.2	)%
Changes in unrecognized tax benefits		152		(0.1	)%
Total	$	(793	)	0.8	%

1. State taxes in California made up the majority (greater than 50%) of this category.

The following table is a reconciliation of the U.S. federal statutory rate to the Company’s effective income tax for the year ended December 31, 2024 in accordance with the guidance prior to the adoption of ASU 2023-09 (in thousands):

	December 31, 2024
Income tax at U.S. statutory rate	$	(16,890	)
State income taxes, net of federal benefit		(1,895	)
Change in valuation allowance		11,517
Impairment		5,053
Tax credits		(1,344	)
Share-based compensation		1,684
Other		(222	)
Income tax benefit	$	(2,097	)
Effective income tax rate		2.6	%

Summary of Income Taxes Paid (Net of Refunds Received)

Income taxes paid (net of refunds received) included the following (in thousands):

	Year Ended December 31, 2025
U.S. federal	$	-
U.S. state		15
Foreign		15
	$	30

Components of Deferred Tax Assets and Liabilities

The significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):

	December 31, 2025			December 31, 2024
Deferred tax assets:
Net operating loss carryforwards	$	31,063		$	35,307
Share-based compensation		2,079			1,442
Tax credits		4,912			2,198
Accruals and reserves		2,076			1,688
Lease liability		343			372
Capitalized research and development costs		21,662			9,824
Deferred Income		5,601			-
Other		1			3
Total deferred tax assets		67,737			50,834
Valuation allowance		(60,364	)		(41,830	)
Net deferred tax assets		7,373			9,004
Deferred tax liabilities:
Property and equipment		(339	)		(271	)
Intangibles		(8,420	)		(10,893	)
Right-of-use asset		(316	)		(335	)
Total deferred tax liabilities		(9,075	)		(11,499	)
Net deferred tax liabilities	$	(1,702	)	$	(2,495	)

Summary of Reconciliation of the Beginning and Ending Balance of Total Unrecognized Tax Benefits

A reconciliation of the beginning and ending balance of total unrecognized tax benefits is as follows (in thousands):

	December 31, 2025		December 31, 2024
Beginning balance	$	526	$	-
Increases related to prior year tax positions		152		224
Increases related to current year tax positions		519		302
Ending balance	$	1,197	$	526