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INCOME TAXES
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 12 - INCOME TAXES

Loss from continuing operations before income taxes, classified by source of income, were as follows:

 

 

Year Ended December 31,

 

(in thousands)

 

2025

 

 

2024

 

 

2023

 

Domestic

 

$

(177,668

)

 

$

(287,596

)

 

$

(100,432

)

Foreign

 

 

(3,927

)

 

 

(1,619

)

 

 

(633

)

Total

 

$

(181,595

)

 

$

(289,215

)

 

$

(101,065

)

The components of the provision/(benefit) for income taxes were as follows:

 

 

Year Ended December 31,

 

(in thousands)

 

2025

 

 

2024

 

 

2023

 

Current:

 

 

 

 

 

 

 

 

 

Federal

 

$

—

 

 

$

—

 

 

$

—

 

State

 

 

—

 

 

 

—

 

 

 

—

 

Foreign

 

 

—

 

 

 

—

 

 

 

—

 

Total current provision/(benefit)

 

 

—

 

 

 

—

 

 

 

—

 

Deferred:

 

 

 

 

 

 

 

 

 

Federal

 

 

970

 

 

 

(79

)

 

 

650

 

State

 

 

—

 

 

 

—

 

 

 

—

 

Foreign

 

 

—

 

 

 

—

 

 

 

—

 

Total deferred provision/(benefit)

 

 

970

 

 

 

(79

)

 

 

650

 

Total provision/(benefit) for income taxes

 

$

970

 

 

$

(79

)

 

$

650

 

The effective tax rate differs from the statutory tax rates as follows:

 

 

Year Ended December 31,

 

(in thousands)

 

2025

 

 

2024

 

 

2023

 

Tax at statutory federal rate

 

$

(38,135

)

 

 

21.0

 %

 

$

(60,735

)

 

 

21.0

 %

 

$

(21,224

)

 

 

21.0

 %

Change in valuation allowance

 

 

50,902

 

 

 

(28.0

)%

 

 

57,600

 

 

 

(19.9

)%

 

 

48,679

 

 

 

(48.1

)%

Effect of foreign tax laws

 

 

840

 

 

 

(0.5

)%

 

 

340

 

 

 

(0.1

)%

 

 

133

 

 

 

(0.1

)%

Nontaxable or nondeductible
  items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warrant expense

 

 

(12,966

)

 

 

7.1

 %

 

 

15,038

 

 

 

(5.2

)%

 

 

(6,920

)

 

 

6.8

 %

Other nontaxable or
  nondeductible items

 

 

1,294

 

 

 

(0.7

)%

 

 

(4,456

)

 

 

1.5

 %

 

 

1,228

 

 

 

(1.2

)%

Tax credits

 

 

—

 

 

 

—

 %

 

 

(7,865

)

 

 

2.7

 %

 

 

(22,329

)

 

 

22.1

 %

Other

 

 

(965

)

 

 

0.6

 %

 

 

(1

)

 

 

—

 %

 

 

1,083

 

 

 

(1.1

)%

Provision/(benefit) for
  income taxes

 

$

970

 

 

 

(0.5

)%

 

$

(79

)

 

 

(0.0

)%

 

$

650

 

 

 

(0.6

)%

Deferred income tax assets and liabilities result primarily from temporary differences in the recognition of differences between the tax basis and financial statement basis of assets and liabilities, as well as from the recognition of the tax benefits of net operating loss carryforwards and other attributes.

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

 

 

Year Ended December 31,

 

(in thousands)

 

2025

 

 

2024

 

Deferred tax assets:

 

 

 

 

 

 

Net operating losses and tax credit carryforwards

 

$

221,638

 

 

$

159,954

 

Equity-based compensation

 

 

2,795

 

 

 

2,618

 

Start-up expenses

 

 

8,522

 

 

 

9,275

 

Deferred revenue

 

 

1,275

 

 

 

1,391

 

Lease liabilities

 

 

14,126

 

 

 

10,318

 

Capital loss carryforward

 

 

8,448

 

 

 

6,772

 

Debt transactions

 

 

5,348

 

 

 

5,028

 

Other

 

 

599

 

 

 

357

 

Gross deferred tax assets

 

 

262,751

 

 

 

195,713

 

Less valuation allowance

 

 

(214,552

)

 

 

(155,519

)

Total deferred tax assets (after valuation allowance)

 

 

48,199

 

 

 

40,194

 

Deferred tax liabilities:

 

 

 

 

 

 

Property, plant, and equipment

 

 

(34,868

)

 

 

(29,576

)

Right-of-use assets

 

 

(13,567

)

 

 

(9,989

)

Other accruals

 

 

(1,305

)

 

 

(1,200

)

Total deferred tax liabilities

 

 

(49,740

)

 

 

(40,765

)

Net deferred tax liabilities

 

$

(1,541

)

 

$

(571

)

As of December 31, 2025, the Company has $800.8 million of U.S. federal net operating loss carryforwards, $24.2 million post-apportioned state net operating loss carryforwards, and $34.1 million of research and development tax credit carryforwards. As of December 31, 2024, the Company had $542.7 million of U.S. federal net operating loss carryforwards, $15.0 million post-apportioned gross state net operating loss carryforwards, and $34.1 million of research and development tax credit carryforwards. The attributes will be available to offset future income tax liabilities. The U.S. federal net operating losses can be carried forward indefinitely, the state net operating losses in certain jurisdictions can be carried forward indefinitely, while certain other jurisdictions expire at various dates, and the research and development tax credit can be carried forward for up to 20 years and will begin to expire in 2042.

Valuation allowances are established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. The valuation allowance on our deferred tax assets was $214.6 million and $155.5 million as of December 31, 2025 and 2024, respectively, resulting in a net change of $59.1 million year-over-year. The valuation allowance mainly relates to U.S. federal and state net operating loss carryforwards, credit carryforwards, and start-up expenses. As the Company has reported minimal revenue from inception, it has no historic basis for projecting future taxable income, and lacks other sources of taxable income, resulting in the continued need for a valuation allowance.

As of December 31, 2025, the Company has continued to report foreign losses, which resulted in unbenefited accumulated losses for foreign operations. As a result, there is no potential deferred tax liability on the outside basis of foreign investments as of December 31, 2025 and 2024, respectively.

As of December 31, 2025 and 2024, the Company has not recorded an amount of gross unrecognized tax benefits for uncertain tax positions for the current or prior year planned tax filing positions. No unrecognized tax benefits are applicable for prior periods.

The Company files income tax returns in the U.S. federal jurisdiction and in various state jurisdictions based on existing tax laws. The Company remains generally subject to potential examination in the U.S. and state jurisdictions for years beginning on or after March 2021 due to the creation of net operating losses that can be

used in the future. Any potential reviews for years prior to March 2021 would not be expected to impact the Company while the Company operated as a flow-through entity. The Company is not currently under audit in any jurisdiction for income taxes.

The Company actively monitors domestic and global tax law changes to account for the effects in the period the legislation is enacted, as applicable.