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Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of income tax provision (benefit) for the years ended December 31, 2025 and 2024 were as follows:
For the Year Ended
December 31,
(In thousands)20252024
Current provision
Federal$12 $— 
State748 — 
Foreign50 — 
Total current provision$810 $— 
Deferred provision
Federal$— $— 
State— — 
Foreign— — 
Total deferred provision$— $— 
Total provision (benefit) for income taxes$810 $— 

Income (loss) before income taxes consists of:
 For the Year Ended
December 31,
(In thousands)20252024
Domestic$2,720 $(26,806)
Foreign790 420 
Income before taxes$3,510 $(26,386)

The Company adopted ASU 2023-09 "Income Taxes (Topic 740): Improvements To Income Tax Disclosures" on a prospective basis beginning with the year ended December 31, 2025. The following table presents required disclosure pursuant to ASU 2023-09 and reconciles the U.S. federal statutory tax amount and rate to our actual global effective amount and rate for the year ended December 31, 2025:
For the Year Ended
December 31, 2025
(In thousands) Amount Percentage
U.S. federal statutory tax rate735 20.9 %
State and local income taxes, net of federal income tax effect (1)591 16.8 %
Foreign tax effects
Ireland
Statutory tax rate difference between Ireland and the United States(79)(2.3)%
Changes in valuation allowances157 4.5 %
Provision to return(236)(6.7)%
Nondeductible expenses(37)(1.1)%
United Kingdom
Statutory tax rate difference between United Kingdom and the United States(5)(0.1)%
Changes in valuation allowances— — %
Provision to return— — %
Nondeductible expenses50 1.4 %
Germany
Statutory tax rate difference between Germany and the United States(4)(0.1)%
Changes in valuation allowances— — %
Provision to return— — %
Nondeductible expenses45 1.3 %
Other countries(7)(0.2)%
Effect of changes in tax laws or rates enacted in the current period— — %
Effect of cross-border tax laws
Global intangible low-taxed income52 1.5 %
Foreign disregarded entity branch inclusion195 5.6 %
Tax credits
Research and development tax credits(1,180)33.6 %
Changes in valuation allowances(3,275)93.3 %
Nontaxable or nondeductible items
Stock compensation3,694 105.2 %
Meals and entertainment43 1.2 %
Other 16 0.5 %
Changes in unrecognized tax benefits— — %
Other adjustments55 1.6 %
Provision for income taxes and effective tax rate810 23.1 %

(1) During the year ended December 31, 2025, state taxes in Pennsylvania and California made up the majority of tax effects in this category.
The following table presents the required disclosures prior to the adoption of ASU 2023-09 and reconciles the U.S. federal statutory income tax rate to the actual global effective income tax rate for the year ended December 31, 2024:
 For the Year Ended
December 31, 2024
(In thousands)
Income taxes using U.S federal statutory rate$(5,541)
Nondeductible interest64 
Branch income151 
State income taxes, net of federal benefit(1,513)
Foreign rate differential(67)
Valuation allowance3,029 
Stock option expense, exercises and cancellations1,336 
Research and development costs(746)
Other332 
Derivative Charge2,955 
 $— 
Significant components of the Company’s deferred tax assets are as follows:
 For the Year Ended
December 31,
(In thousands)20252024
Deferred tax assets:
Employee compensation accruals$3,196 $2,182 
Accrued liabilities892 707 
Research tax credits4,231 3,015 
Lease obligation225 249 
Other151 171 
Research expense capitalization1,305 6,927 
Net operating losses28,354 29,071 
Total deferred tax assets$38,354 $42,322 
 For the Year Ended
December 31,
(In thousands)20252024
Deferred tax liabilities:
Right of use asset$225 $249 
Total deferred tax liabilities225 249 
Valuation allowance38,129 42,073 
Net deferred tax assets$— $— 
As of December 31, 2025, and 2024, the Company had net operating loss carryforwards for United States federal income tax purposes of approximately $295.7 million and $301.1 million, respectively. A significant portion of the federal amount is subject to an annual limitation as low as $28 thousand as a result of changes in the Company’s ownership in May 2003, November 2016, and multiple dates throughout 2017, 2018, 2019, 2021 and 2023, as
defined by Section 382 of the United States Internal Revenue Code of 1986, as amended (the “IRC”), and the related income tax regulations. As a result of the limitations caused by the multiple ownership changes, approximately $194.6 million of the total net operating loss carryforwards is expected to expire unutilized and will be unavailable to offset future federal taxable income. Approximately $101.1 million of net operating loss carryforwards remains available to offset future federal taxable income, of which $1.5 million will expire between 2025 and 2037 and $99.6 million will have an unlimited carryforward period.
In addition, the Company’s state net operating losses are also subject to annual limitations that generally follow the IRC Section 382 provisions (with the exception of Connecticut and Florida), adjusted for each state’s respective income apportionment percentages. As of December 31, 2025, and 2024, the Company had net operating loss carryforwards for states and city income tax purposes between approximately $0.1 million and $200.2 million and between approximately $0.6 million and $200.2 million, respectively, which expire through 2044. As a result of the Section 382 limitations, approximately $191.1 million and $175.3 million of New York State and New York City net operating losses are expected to expire unutilized and will be unavailable to offset future taxable income. Approximately $5.0 million and $4.9 million of net operating loss carryforwards, respectively, will be available to offset future state and city taxable income. As of December 31, 2025 and 2024, the Company had a net operating loss carryforward for foreign income tax purposes of $47.0 million and $40.3 million, respectively, which have indefinite carryforward periods. As of December 31, 2025 and 2024, the Company had federal research and development tax credit carryforwards of approximately $9.2 million and $8.1 million, respectively, which expire through 2045. As a result of the Section 382 limitations, all but $4.1 million of the tax credit carryforwards is expected to expire unutilized.
Management has established a 100% valuation allowance against the deferred tax assets as management does not believe it is more likely than not that these assets will be realized. The Company’s valuation allowance decreased by approximately $3.9 million and increased by $2.8 million in 2025 and 2024, respectively. The change in valuation allowance is as follows:
 December 31,
(In thousands)20252024
Beginning Balance$42,073 $39,301 
Charged to costs and expenses(4,491)3,028 
Charged to other comprehensive income547 (256)
Ending balance$38,129 $42,073 
The Company complies with the provisions of ASC 740-10 in accounting for its uncertain tax positions. ASC 740-10 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740-10, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company has determined that the Company has no significant uncertain tax positions requiring recognition under ASC 740-10 and therefore has not included a tabular roll forward of unrecognized tax benefits. As there are no uncertain tax positions recognized, interest and penalties have not been accrued.
The Company is subject to income tax in the United States, as well as various state and international jurisdictions. The Company has not been audited by any state tax authorities in connection with income taxes. The Company has not been audited by international tax authorities or any states in connection with income taxes. The Company’s New York State tax returns have been subject to annual desk reviews which have resulted in insignificant adjustments to the related franchise tax liabilities and credits. The Company is no longer subject to federal and state examination for tax years ending prior to December 31, 2022; tax years ending December 31, 2022 through December 31, 2025 remain open to examination. The Republic of Ireland is the Company’s only significant foreign jurisdiction. The Company is no longer subject to Ireland tax examination for tax years ending prior to December 31, 2020 (as Ireland has not initiated an audit of 2019 as of December 31, 2025); tax years ending December 31, 2020 through December 31, 2025 remain open to examination. However, the Company’s tax years December 31, 1998 through
December 31, 2025 generally remain open to adjustment for all federal, state and foreign tax matters until its net operating loss and tax credit carryforwards are utilized or expire prior to utilization, and the applicable statutes of limitation have expired in the utilization year. The federal and state tax authorities can generally reduce a net operating loss (but not create taxable income) for a period outside the statute of limitations in order to determine the correct amount of net operating loss which may be allowed as a deduction against income for a period within the statute of limitations.
The Company recognizes interest accrued related to unrecognized tax benefits and penalties, if incurred, as a component of income tax expense.
The Company’s foreign subsidiaries have generally incurred losses since inception and the Company has no material undistributed earnings as of December 31, 2025.
The Company adopted ASU 2023-09 on a prospective basis for the year ended December 31, 2025 and has included the following table as a result of adoption, which presents income taxes paid (net of refunds received) for the year ended December 31, 2025:
For the Year Ended
December 31,
(In thousands)2025
U.S. Federal$741 
State:
California331 
Massachusetts98 
Pennsylvania207 
Other states118 
State subtotal754 
Foreign:
Other countries50 
Foreign subtotal50 
Total cash paid for income taxes (net of refunds)$1,545 
The Company had no income taxes paid for the year ended December 31, 2024, prior to the adoption of ASU 2023-09.
One Big Beautiful Bill
On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act (“OBBBA”), which resulted in the extension of many provisions of the current tax law as well as other rule changes that could impact the Company’s tax provision in 2025 or 2026. Examples of the new tax law include the following:
•Full expensing of U.S. research and development costs under Section 174A.
•Retroactive expensing of unamortized U.S. research and development costs capitalized between 2022 and 2024; either all in 2025, or over two years in 2025 and 2026.
•Return of the Section 163(j) taxable income base excluding the deductions for depreciation and amortization in 2025 (change from “Tax EBIT” to “Tax EBITDA”).
•Decrease in the Section 250 deduction for Net CFC Tested Income (formerly GILTI) to 40% (from 50%) in 2026, instead of the scheduled decrease to 37.5% prior to the OBBBA.
•Decrease in the Section 250 deduction for foreign-derived income to 33.34% (from 37.5%) in 2026, instead of the scheduled decrease to 21.875% prior to the OBBBA.
•Increase in the foreign tax credit rate on Net CFC Tested Income (formerly GILTI) to 90% (from 80%), and a 10% disallowance on repatriation, in 2026.
•Removal of the allocation of interest expense and research and development expense to Net CFC Tested Income (formerly GILTI) in calculating the foreign tax credit limitation, effective in 2026.
The Company's tax provision of $810 thousand for the year ended December 31, 2025 is predominantly related to $748 thousand of state income taxes in jurisdictions which do not conform to the retroactive expensing of unamortized United States research and development costs capitalized between 2022 and 2024. As the Company records a full valuation on deferred tax assets, there is no deferred tax provision recorded as a results of the OBBBA.