Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax

The following table summarizes income (loss) before income taxes and the income tax provision (benefit), by continuing and discontinued operations, and reconciles to net income (loss):

	Years Ended December 31,
	2025		2024
Income (loss) before income taxes	$	125,378	$	(100,453)
Income tax provision - continuing operations	(520)		(249)
Income tax provision - discontinued operations	–		(8)
Net income (loss)	$	124,858	$	(100,710)

The income (loss) before income taxes from continuing operations, by jurisdiction, consists of the following:

	Years Ended December 31,
	2025		2024
Income (loss) from continuing operations before income tax:
U.S. Federal	$	29,128	$	(7,418)
Foreign	–		–
Total	$	29,128	$	(7,418)

Schedule of Income Tax Provision

The following table summarizes the components of income tax provision (benefit) from continuing operations, including current and deferred income taxes:

	Years Ended December 31,
	2025		2024
Current tax provision:
Federal	$	28	$	–
State and local	561		46
Total Current tax provision	$	589	$	46
Deferred tax provision (benefit):
Federal	$	(46)	$	55
State and local	(23)		148
Total deferred tax provision (benefit)	$	(69)	$	203
Total income tax provision (benefit):
Federal	$	(18)	$	55
State and local	538		194
Total income tax provision	$	520	$	249

Schedule of Tax Benefit and Effective Income Tax

The income tax provision (benefit) for continuing operations on the statements of operations and comprehensive income (loss) differs from the amount computed by applying the statutory federal income tax rate to loss before the benefit for income taxes after the adoption of ASU 2023-09, as follows:

	Year Ended December 31,
	2025
	Amount		Percent
U.S. federal statutory rate	$	6,118	21.0	%
State and local income taxes, net of federal (national) income tax effect (1)	420		1.4	%
Nontaxable or nondeductible items:
Stock-based compensation	1,607		5.5	%
Other	7		0.0	%
Changes in valuation allowance	(7,526)		-25.8	%
Other reconciling items	(106)		-0.4	%
Income tax provision and effective income tax rate	$	520	1.7	%

(1) In 2025, state taxes in California made up the majority of the state and local income taxes, net of federal effect category.

The income tax provision (benefit) for continuing operations on the statements of operations and comprehensive income (loss) differs from the amount computed by applying the statutory federal income tax rate to loss before the benefit for income taxes before the adoption of ASU 2023-09, as follows:

	Year Ended December 31,
	2024
	Amount		Percent
Federal benefit expected at statutory rate	$	(1,558)	21.0	%
State and local taxes, net of federal benefit	(569)		7.7	%
Stock-based compensation	2,284		-30.8	%
Unearned revenue	(407)		5.5	%
Interest expense	36		-0.5	%
Lease termination	(407)		5.5	%
Other differences, net	198		-2.7	%
Valuation allowance	672		-9.1	%
Income tax provision and effective income tax rate	$	249	-3.4	%

Schedule of Components of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities were as follows:

	As of December 31,
	2025		2024
Deferred tax assets:
Net operating loss carryforwards	$	52,611	$	57,207
Interest expense limitation carryover	14,365		14,289
Tax credit carryforwards	264		264
Allowance for doubtful accounts	479		1,070
Accrued expenses and other	926		999
Termination fee liability	–		13,743
Liquidated Damages	1,031		911
Unearned revenue	148		12,626
Stock-based compensation	2,976		4,964
Operating lease liability	714		–
Deferred tax assets	73,514		106,073
Valuation allowance	(67,102)		(103,606)
Total deferred tax assets	6,412		2,467
Deferred tax liabilities:
Acquired and other intangible assets	–		(2,729)
Depreciation and Amortization	(3,738)		(518)
Operating lease liability	–		(22)
Right of Use Assets	(587)		–
Capitalized Development Costs	(2,820)		–
Total deferred tax liabilities	(7,145)		(3,269)
Net deferred tax liabilities	$	(733)	$	(802)

Schedule of Valuation Allowance

The following table summarizes activity related to the Company's valuation allowance:

	Years Ended December 31,
	2025		2024
Valuation allowance, beginning of year	$	(103,606)	$	(76,367)
Income tax expense:
Decrease/ (increase) in valuation allowance	36,504		(27,239)
Valuation allowance, end of year	$	(67,102)	$	(103,606)

Schedule of Income Taxes Paid, Net

Income taxes paid consist of:

	Year Ended December 31,
	2025
Federal	$	110
State and local:
California	524
Illinois	57
Texas	57
Other	114
Total taxes paid	$	862