XML 35 R19.htm IDEA: XBRL DOCUMENT v3.25.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
 
The components of loss before income taxes are summarized as follows: 
 Year Ended December 31,
(In thousands)202420232022
U.S.$10,580 $(2,381)$(15,912)
Foreign(70)13 (76)
Income (loss) before income taxes$10,510 $(2,368)$(15,988)
 
A reconciliation of income taxes computed using the U.S. federal statutory rate to the taxes reported in the consolidated statements of operations is as follows: 
 Year Ended December 31,
(In thousands)202420232022
Income (loss) before income taxes$10,510 $(2,368)$(15,988)
Federal statutory rate21 %21 %21 %
Taxes computed at federal statutory rate2,207 (497)(3,357)
State and local income taxes381 (389)(630)
Nondeductible stock-based compensation(6,547)(586)1,168 
Federal and state rate change1,090 (704)574 
Research and orphan drug credits(156)362 (644)
Other402 162 267 
Deferred tax adjustment7,374 — — 
Change in valuation allowance(4,603)2,466 3,343 
Reported income taxes$148 $814 $721 

Deferred tax assets (liabilities) consist of the following:
 Year Ended December 31,
(In thousands)20242023
Deferred tax assets:
Net operating loss carryforwards$15,481 $4,505 
Employee benefits and stock-based compensation18,606 24,812 
Research and development costs4,778 5,176 
Intangible assets786 962 
Operating lease liabilities20,664 20,849 
Inventory reserve2,540 3,570 
Tax credit carryforward10,937 10,781 
Other, net3 12 
Total deferred tax assets73,795 70,667 
Less: valuation allowance(45,153)(49,755)
Total net deferred tax assets28,642 20,912 
Deferred tax liabilities:
Right-of-use assets(18,056)(19,296)
Property and equipment, net(10,586)(1,616)
Total net deferred tax liabilities(28,642)(20,912)
Net deferred tax assets and liabilities$— $— 
 
As of December 31, 2024, the Company had U.S. federal net operating loss carryforwards of $56.6 million, of which $10.9 million begin to expire in 2033 and the remainder do not expire but are subject to 80% limitation. As of December 31, 2024, the Company had state net operating loss carryforwards of $54.9 million that begin to expire in 2027. The projected annual limitation on the use of the net operating losses that existed prior to September 17, 2014 resulting from the Company’s change in control in 2014 per Section 382 of the Internal Revenue Code is $0.8 million. As a result, a significant portion of the net operating losses and tax credit carryforwards will expire prior to their utilization, regardless of the level of future profitability. As of December 31, 2024, the Company’s U.S. federal tax credit carryforwards available to offset future profits are $10.9 million. These credit carryforwards expire between 2027 and 2044.

In accordance with the accounting guidance for income taxes, the Company estimates whether recoverability of its deferred tax assets is “more likely than not”, based on forecasts of taxable income in the related tax jurisdictions. In this estimate, the Company uses historical results, projected future operating results based upon approved business plans, eligible carry forward periods, tax planning opportunities and other relevant considerations. Based on these factors, including historical losses incurred by the Company, a full valuation allowance for the deferred tax assets, including the deferred tax assets for the aforementioned net operating losses and credits has been provided, since they are not more likely than not to be realized. If sufficient positive evidence exists in future periods to support a release of some or all of the valuation allowance, such a release would likely have a material impact on the Company’s results of operations. The change in the valuation allowance was a decrease of $4.6 million and an increase of $2.5 million for the years ended December 31, 2024 and 2023, respectively.

The Company assesses uncertain tax positions in accordance with the guidance for accounting for uncertain tax positions. This pronouncement prescribes a recognition threshold and measurement methodology for recording within the consolidated financial statements uncertain tax positions taken, or expected to be taken, in the Company’s income tax returns. To the extent the uncertain tax positions do not meet the “more likely than not” threshold, the Company derecognizes such positions. To the extent the uncertain tax positions meet the “more likely than not” threshold, the Company measures and records the highest probable benefit, and establishes appropriate reserves for benefits that exceed the amount likely to be sustained upon examination. The Company currently has not recorded any uncertain tax positions and does not anticipate that unrecognized tax benefits will significantly increase or decrease within the next twelve months.

The Company files U.S. federal and state income tax returns with varying statutes of limitations. During the year ended December 31, 2020, examinations by U.S. tax authorities were completed for 2017 and 2018. The Company is currently under examination by U.S. tax authorities for the tax year ended December 31, 2021. Due to the Company’s net operating loss carryforwards, federal income tax returns from incorporation are still subject to examination. The Company files in several state tax jurisdictions and is subject to examination in years ranging from incorporation to 2024.