Income taxes

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Income taxes

Income taxes

Income tax benefit from continuing operations consists of the following:

	Year Ended December 31,
(In thousands)	2024		2023		2022
Current:
State	$	(26)	$	(46)	$	(11)
Total current tax provision	(26)		(46)		(11)
Deferred:
Federal	64		70		2,929
State	—		—		2,318
Total deferred tax provision	64		70		5,247
Income tax benefit	$	38	$	24	$	5,236

The Company's (loss) income from continuing operations before income tax benefit did not contain any foreign components as of December 31, 2024, 2023, and 2022.

The tax benefit for the year ended December 31, 2024 contained excess tax benefits from stock-based compensation of $0.3 million. The tax benefit for the years ended December 31, 2023, and 2022 did not contain excess tax benefits from stock-based compensation.

A reconciliation of income taxes computed using the U.S. federal statutory rate to that reflected in operations follows:

	Year Ended December 31,
	2024		2023		2022
Federal statutory tax	21	%	21	%	21	%
State tax, net of federal benefit	6	%	4	%	11	%
Stock compensation	4	%	(5	%)	—	%
Sec. 162(m) limitation on executive compensation	(4	%)	(6	%)	(30	%)
Fair value change in contingent consideration	—	%	2	%	21	%
Tax credits	4	%	4	%	17	%
Change in valuation allowance	(27	%)	(24	%)	74	%
Gain on escrow settlement	—	%	5	%	—	%
Other	(4	%)	(1	%)	(6	%)
Total	—	%	—	%	108	%

The principal components of the Company’s net deferred tax liabilities are as follows as of December 31, 2024 and 2023:

(In thousands)	2024		2023
Deferred tax assets related to:
Net operating loss carryforwards	$	39,079	$	35,505
Capital loss carryforward	7,011		—
Tax credit carryforward	2,695		2,226
Stock-based compensation	2,141		3,008
Accruals and reserves	1,883		3,590
Inventory	1,410		1,408
Fixed assets	568		585
Lease liabilities	3,540		3,950
Capitalized research and development	3,222		4,818
Fair value change in investments	556		—
Other	1,084		875
Total deferred tax assets	63,189		55,965
Deferred tax liabilities related to:
Intangibles	(2,326)		(3,696)
Right-of-use assets	(2,654)		(2,500)
Fair value change in investments	—		(440)
Total deferred tax liabilities	(4,980)		(6,636)
Net deferred tax assets before valuation allowance	58,209		49,329
Less: valuation allowance	58,333		49,517
Net deferred tax liabilities	(124)		(188)
Less: deferred tax liability, discontinued operations	—		(74)
Net deferred tax liabilities, continuing operations	$	(124)	$	(114)

Realization of deferred tax assets is dependent upon the generation of future taxable income, if any, the timing and amount of which are uncertain. The assessment regarding whether a valuation allowance is required on deferred tax assets considers the evaluation of both positive and negative evidence when concluding whether it is more likely than not that deferred tax assets are realizable. The valuation allowance recorded as of December 31, 2024 and 2023 primarily relates to deferred tax assets for net operating loss carryforwards.

The changes in the valuation allowance for deferred tax assets were as follows:

(In thousands)	2024		2023		2022
Balance at beginning of period	$	49,517	$	33,402	$	2,993
Net deferred tax assets divested	(7,173)		—		—
Charged to income tax expense	15,989		16,115		30,409
Balance at end of period	$	58,333	$	49,517	$	33,402

As of December 31, 2024, the Company had U.S. federal net operating loss (“NOL”) carryforwards of approximately $165.2 million. Approximately $38.7 million of NOL will expire from 2025 through 2037, and approximately $126.5 million of NOL will be carried forward indefinitely. The NOL carryforwards may become subject to an annual limitation in the event of certain cumulative changes in the ownership interest. This limited the amount of tax attributes that can be utilized annually to offset future taxable income or tax liabilities. Subsequent ownership changes may further affect the limitation in future years.

The Company determines its uncertain tax positions based on a determination of whether and how much of a tax benefit taken by the Company in its tax filings or positions is more likely than not to be sustained upon examination by the relevant income tax authorities.

A reconciliation of the beginning and ending balances of uncertain tax positions in the years ended December 31, 2024 and 2023 is as follows:

(In thousands)	2024		2023
Balance at beginning of period	$	954	$	610
Increase related to prior year tax positions	—		20
Increase related to current year tax positions	201		324
Balance at end of period	$	1,155	$	954

The Company is generally subject to examination by U.S. federal and local income tax authorities for all tax years in which loss carryforward is available, which includes 2005 through 2024.