Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

v3.26.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income (Loss) Before Provision (Benefit) for Income Taxes

The Company’s income (loss) before provision (benefit) for income taxes for years ended December 31, 2025 and 2024, respectively were generated in the following jurisdictions (in thousands):

 

    2025     2024  
    Years Ended December 31,  
    2025     2024  
Domestic     (7,868 )     (15,898 )
Foreign     (963 )     (2,729 )
Worldwide income     (8,831 )     (18,627 )
Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred income taxes at December 31, 2025 and 2024 are shown below (table in thousands):

 

    2025     2024  
Deferred tax assets:                
Net operating loss carryforwards   $ 26,325     $ 23,672  
Compensation     550       666  
Research and development tax credits     3,736       3,543  
Capitalized and Research Expenditures     5,992       6,935  
Other     674       789  
Total deferred tax assets     37,277       35,605  
                 
Deferred tax liabilities:                
Property and equipment     (10 )     (16 )
Other     (303 )     (371 )
Total deferred tax liabilities     (313 )     (387 )
                 
Total deferred taxes, net     36,964       35,218  
Valuation allowance     (36,964 )     (35,218 )
                 
Deferred tax liability, net   $ -     $ -  
Schedule of Reconciliation of Federal Statutory Income Tax Rate

Upon adoption of ASU 2023-09, Improvements to Income Tax Disclosures, the reconciliation of taxes at the federal statutory rate to our provision for (benefit from) income taxes for the year ended December 31,2025 was as follows (in thousands, except for percentages):

 

    Year Ended December 31, 2025  
Tax Computed at federal statutory rate     (1,855 )     21.0 %
State tax, net of federal income tax effect:             0.0 %
Foreign tax effects:                
Australia:                
R&D Refund     (204 )     2.31 %
Nondeductible research expenditures     439       (4.97 )%
Other     (33 )     (0.37 )%
Effects of changes in tax laws or rates enacted in the current period:             0.00 %
Effects of cross-border tax laws:             0.00 )%
R&D Credits     (193 )     2.18 %
Change in valuation allowance:     1,679       (19.01 )%
Nontaxable or nondeductible items:                
Other     2       (0.02 )%
Equity Compensation     165       (1.87 )%
Other:                
Other             0.00 %
Changes in Unrecognized Tax Benefits:             0.00 %

 

The Company’s domestic operations are principally in the states of Washington and Florida.

 

The reconciliation of taxes at the federal statutory rate to our provision for (benefit from) income taxes for the year December 31, 2024, in accordance with the guidance prior to the adoption of ASU 2023-09 was as follows:

 

    2024  
       
Statutory federal income tax rate     21.00 %
Research credits     1.86 %
Change in valuation allowance     (20.14 )%
Equity compensation     (0.27 )%
Foreign rate differential     1.32 %
Other tax, credit and adjustments     (3.78 )%
Effective income tax rate     0.00 %