Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Income (loss) from Continuing Operations Before Provision for Income Taxes

Income (loss) from continuing operations before provision for income taxes for the Company’s domestic and international operations was as follows (in thousands):

	Year Ended December 31,
	2025		2024		2023
United States	$	1,407	$	30,518	$	(10,377	)
Foreign		—		—		—
Income (loss) before provision for income taxes	$	1,407	$	30,518	$	(10,377	)

Provision for Income Taxes

The provision for income taxes consists of the following (in thousands):

	Year Ended December 31,
	2025			2024			2023
Current
U.S. federal	$	—		$	—		$	—
U.S. state		493			2,750			1,555
Non-U.S.		—			165			—
Total current		493			2,915			1,555
Deferred
U.S. federal		(12,583	)		15,302			(190	)
U.S. state		(6,884	)		(11,428	)		7,002
Non-U.S.		—			—			—
Total deferred		(19,467	)		3,874			6,812
Valuation allowance		14,518			(3,859	)		(6,806	)
Net deferred		(4,949	)		15			6
Total tax (benefit) expense	$	(4,456	)	$	2,930		$	1,561

Reconciliation of Provision for Income Taxes

A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes after the adoption of ASU 2023-09 is as follows (dollars in thousands):

	Year Ended December 31,
	2025			%
Tax at U.S. statutory rate	$	295			21	%
State income taxes, net of federal benefit(1)		393			28	%
Tax credits:
Research and development tax credits		773			55	%
Nontaxable or nondeductible items:
Meals and Entertainment		278			20	%
Officer's Compensation		1,835			131	%
162m Stock Compensation DTA Haircut		848			60	%
Stock Based Compensation		628			45	%
Transaction Costs		1,130			80	%
Contingent Liability		216			15	%
Other		7			0	%
Change in valuation allowance		(10,884	)		-775	%
Other		25			2	%
Total	$	(4,456	)		318	%

__________________________

(1)During the year ended December 31, 2025, the state and local jurisdiction of Minnesota comprised the majority (greater than 50%) of the tax effect in this category.

A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes for years prior to the adoption of ASU 2023-09 is as follows:

	Year Ended December 31,
	2024			2023
Federal tax benefit rate		21.0	%		21.0	%
State tax expense (net of federal benefit)		7.1	%		-11.8	%
Permanent items		5.2	%		-2.8	%
Officers compensation		5.6	%		-35.3	%
Debt settlement		7.2	%		0.0	%
Stock based compensation		0.0	%		-5.6	%
Tax attribute expirations		1.6	%		0.4	%
Valuation allowance		-42.2	%		9.1	%
Other deferred adjustments		4.1	%		10.0	%
Effective income tax rate		9.6	%		-15.0	%

Amounts of Cash Income Taxes Paid

The amounts of cash income taxes paid by the Company were as follows (in thousands):

	Year Ended December 31,
Income Taxes Paid, Net of Refunds Received	2025
US Federal	$	—
US State & Local:
Connecticut		179
Minnesota		737
New York		421
Other		368
Foreign		—
Total	$	1,705

Components of Net Deferred Tax Assets

Components of the net deferred tax asset as of December 31, 2025 and 2024 are approximately as follows (in thousands):

	December 31,
	2025			2024
Deferred tax assets:
Net operating loss carryforwards	$	558,934		$	480,008
Research and development credits		82,395			75,730
Capitalized research costs		30,654			26,872
Milestone rights		638			804
Accrued expenses		7,562			4,302
Loss on purchase commitment		23,902			22,413
Non-qualified stock option expense		1,585			3,364
Intangibles		—			4,798
Other		7,706			4,973
Lease liability		3,231			3,578
Depreciation		20,463			21,638
Deferred product revenue and costs		11,583			11,347
Sale of future royalties		38,232			38,059
Total deferred tax assets		786,885			697,886
Valuation allowance		(708,887	)		(694,369	)
Net deferred tax assets	$	77,998		$	3,517
Deferred tax liabilities:
Right of use asset	$	(2,985	)	$	(3,334	)
Intangibles		(74,793	)	$	—
Other prepaids		(262	)		(204	)
Total deferred tax liabilities		(78,039	)		(3,538	)
Net deferred tax liability	$	(41	)	$	(21	)

Summary of Valuation Allowance for Deferred Tax Assets

A reconciliation of beginning and ending amounts of the Company's valuation allowance for deferred tax assets was as follows (in thousands):

	Year Ended December 31,
	2025		2024			2023
Valuation Allowance for Deferred Tax Assets
Beginning of Year	$	694,369	$	698,228		$	705,034
Additions (deductions) charged to expenses		14,518		(3,859	)		(6,806	)
End of Year	$	708,887	$	694,369		$	698,228