Income taxes

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Income taxes

Income taxes

The Company prospectively adopted ASU 2023-09 as of January 1, 2025.

The Company's loss from continuing operations before income tax expense (benefit) included a loss of $0.1 million from foreign sources as of December 31, 2025. The Company's loss from continuing operations before income tax expense (benefit) did not contain any foreign components as of December 31, 2024 and 2023.

The following table presents U.S. and foreign components of loss from continuing operations before income tax expense (benefit):

	Year Ended December 31,
(In thousands)	2025		2024		2023
Domestic	$	(11,954)	$	(8,823)	$	(12,221)
Foreign	(127)		—		—
Loss from continuing operations before income tax expense (benefit)	$	(12,081)	$	(8,823)	$	(12,221)

Income tax expense (benefit) from continuing operations consists of the following:

	Year Ended December 31,
(In thousands)	2025		2024		2023
Current:
State	$	100	$	26	$	6
Foreign	(126)		—		—
Total current tax provision	(26)		26		6
Deferred:
Federal	38		(64)		(70)
State	37		—		—
Total deferred tax provision	75		(64)		(70)
Income tax expense (benefit)	$	49	$	(38)	$	(64)

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

The tax benefit for the years ended December 31, 2024 contained excess tax benefits from stock-based compensation of $0.4 million. The tax benefit for the year ended December 31, 2023 did not contain excess tax benefits from stock-based compensation.

The Company has paid the following in income taxes, net of refunds received:

	Year Ended December 31,
(In thousands)	2025
Current:
State	$	64
Total income taxes paid	$	64

The following table presents a reconciliation of the federal statutory rate and the Company's effective tax rate for the year ended December 31, 2025, in accordance with ASU 2023-09:

	Year Ended December 31,
	2025
(In thousands, except percentages)	Amount		Percentage
At statutory rate	$	(2,537)	21.0	%
State income taxes, net of federal effect	85		(0.7	%)
Change in valuation allowance	(2,174)		18.0	%
Nontaxable or nondeductible items
IPR&D expense	3,259		(26.9	%)
Sec. 162(m) limitation on executive compensation	3,378		(27.9	%)
Stock compensation	(1,789)		14.8	%
Other nondeductible items	98		(0.8	%)
Tax credits
R&D credit	(210)		1.6	%
Worldwide changes in unrecognized tax benefit	22		(0.2	%)
Other	(130)		1.0	%
Foreign tax effects
Canada	47		(0.3	%)
Income tax expense	$	49	(0.4	%)

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
Federal statutory tax	21.0	%	21.0	%
State tax, net of federal benefit	7.3	%	6.4	%
Stock compensation	4.8	%	(8.3	%)
Sec. 162(m) limitation on executive compensation	(5.2	%)	(10.7	%)
Fair value change in contingent consideration	—	%	3.8	%
Tax credits	5.3	%	6.6	%
Change in valuation allowance	(28.3	%)	(24.2	%)
Gain on escrow settlement	—	%	8.8	%
Other	(4.5	%)	(2.4	%)
Total	0.4	%	1.0	%

In 2025, state and local income taxes in Pennsylvania and Texas comprise the majority of the state and local income taxes, net of federal tax.

The principal components of the Company’s net deferred tax liabilities are as follows as of December 31, 2025 and 2024:

(In thousands)	2025		2024
Deferred tax assets related to:
Net operating loss carryforwards	$	37,443	$	39,079
Capital loss carryforward	3,164		7,011
Tax credit carryforward	2,801		2,695
Stock-based compensation	1,498		2,141
Accruals and reserves	1,566		1,883
Inventory	1,111		1,410
Fixed assets	(143)		568
Lease liabilities	3,219		3,540
Capitalized research and development	2,540		3,222
Fair value change in investments	314		556
Other	28		1,084
Total deferred tax assets	53,541		63,189
Deferred tax liabilities related to:
Intangibles	(1,108)		(2,326)
Right-of-use assets	(1,863)		(2,654)
Total deferred tax liabilities	(2,971)		(4,980)
Net deferred tax assets before valuation allowance	50,570		58,209
Less: valuation allowance	50,759		58,333
Net deferred tax liabilities	$	(189)	$	(124)

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, 2025 and 2024 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)	2025		2024
Balance at beginning of period	$	58,333	$	49,517
Net deferred tax assets divested	(2,990)		(7,723)
Charged to income tax expense	(4,584)		16,539
Balance at end of period	$	50,759	$	58,333

During the year ended December 31, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted, introducing significant changes to U.S. tax law. Among other items, the OBBBA allows the deduction of U.S. research and development expenses from taxable income. As previously required under the Tax Cuts and Jobs Act, the Company capitalized research and development expenditures in the years ended December 31, 2024 and 2023. With the enactment of OBBBA, the Company began deducting domestic Section 174 costs during the year ended December 31, 2025.

As of December 31, 2025, the Company had U.S. federal net operating loss (“NOL”) carryforwards of approximately $168.4 million. Approximately $38.6 million of NOL will expire from 2025 through 2037, and approximately $129.8 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, 2025 and 2024 is as follows:

(In thousands)	2025		2024
Balance at beginning of period	$	1,155	$	954
Increase related to prior year tax positions	(98)		—
Increase related to current year tax positions	120		201
Balance at end of period	$	1,177	$	1,155

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 2025.