XML 58 R39.htm IDEA: XBRL DOCUMENT
v3.25.4

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Tax Expense (Benefit) | The provision for (benefit from) income taxes consists of the following (in thousands):
| Year ended December 31,
| 2025 |  | 2024 |  | 2023
Current taxes:
Federal | 799 |  |  | 2,688 |  |  | 2,419 |
State | 2,327 |  |  | 6,688 |  |  | 3,515 |
Total current taxes | 3,126 |  |  | 9,376 |  |  | 5,934 |
Deferred taxes:
Federal | 3,087 |  |  | (41,331) |  |  | — |
State | 59 |  |  | (12,291) |  |  | — |
Total deferred taxes | 3,146 |  |  | (53,622) |  |  | — |
Provision for (benefit from) income taxes | $ | 6,272 |  |  | $ | (44,246) |  |  | $ | 5,934 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the provision for income taxes to the amount computed by applying the 21.0% U.S. federal income tax rate to income before income taxes for years after the adoption of ASU 2023-09 is as follows (in thousands, except percentages):
| Year ended December 31, 2025
| Amount |  | %
U.S. federal statutory income tax rate | $ | 2,068 |  |  | 21.0 | %
State and local taxes, net of federal income tax effect (1) | 2,053 |  |  | 20.9 |
Tax credits: |  |  |
Research and development tax credit | (6,275) |  |  | (63.7) |
Nontaxable or nondeductible items: |  |  |
Meals and entertainment | 123 |  |  | 1.2 |
Stock-based compensation | 1,817 |  |  | 18.5 |
Section 162(m) limitation | 2,343 |  |  | 23.8 |
Common stock warrant expense | 1,840 |  |  | 18.7 |
Net federal true-up | 496 |  |  | 4.9 |
Other adjustments | 116 |  |  | 1.2 |
Changes in unrecognized tax benefits | 1,654 |  |  | 16.8 |
Other adjustments | 37 |  |  | 0.4 |
Effective tax rate | $ | 6,272 |  |  | 63.7 | %
_______________ (1) The states and local jurisdictions that contribute to the majority (greater than 50.0%) of the tax effect in this category include New York City, Minnesota, California, and Ohio. A reconciliation of the provision for (benefit from) income taxes to the amount computed by applying the 21.0% 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
U.S. federal statutory income tax rate | 21.0 | % |  | 21.0 | %
State and local taxes, net of federal income tax effect | 17.2 |  |  | 6.3 |
Permanent items | — |  |  | 6.7 |
Stock-based compensation | (11.9) |  |  | 2.1 |
Net federal true-up | (3.3) |  |  | (0.5) |
Change in valuation allowance | (239.3) |  |  | (17.8) |
Research and development tax credit | (19.9) |  |  | (15.0) |
Common stock warrant expense | 25.1 |  |  | 6.3 |
Changes in unrecognized tax benefits | (8.2) |  |  | 4.4 |
Convertible note | 13.9 |  |  | — |
Section 162(m) limitation | 8.7 |  |  | — |
Equity compensation related adjustment | 16.0 |  |  | — |
Effective tax rate | (180.7) | % |  | 13.5 | %
Schedule of Cash Flow, Supplemental Disclosures | Income taxes paid, net of refunds, by jurisdiction for years after the adoption of ASU 2023-09 were as follows (in thousands):
| Year ended December 31, 2025
Federal | $ | 2,655 |
State and local | 2,492 |
Income taxes, net of refunds | $ | 5,147 |
Income taxes paid, net of refunds, exceeded 5% of total income taxes paid, net of refunds, in the following jurisdictions (in thousands):
| Year ended December 31, 2025
State |
California | $ | 321 |
Minnesota | 340 |
New Jersey | $ | 691 |
Schedule of Deferred Tax Assets and Liabilities | The significant components of deferred income taxes were as follows (in thousands):
| December 31,
| 2025 |  | 2024
Deferred tax assets: |  |  |
Net operating loss, credit carryforwards | $ | 22,402 |  |  | $ | 19,533 |
Accruals and reserves | 8,888 |  |  | 9,640 |
User redemption liability | 8,503 |  |  | 9,630 |
Capitalized research and development | 22,653 |  |  | 39,031 |
Other deferred tax assets | 6,815 |  |  | — |
Gross deferred tax assets | 69,261 |  |  | 77,834 |
Deferred tax liabilities: |  |  |
Property and equipment | (10,793) |  |  | (3,416) |
Other deferred tax liabilities | (3,618) |  |  | (1,207) |
Gross deferred tax liabilities | (14,411) |  |  | (4,623) |
Net deferred tax assets | $ | 54,850 |  |  | $ | 73,211 |
Summary of Valuation Allowance | The table below details the activity of the deferred tax assets valuation allowance (in thousands):
| Balance at Beginning of Year |  | Additions |  | Deductions |  | Balance at End of Year
Deferred tax assets valuation allowance: |  |  |  |  |  |  |
Year ended December 31, 2025 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Year ended December 31, 2024 | (58,624) |  |  | — |  |  | 58,624 |  |  | — |
Year ended December 31, 2023 | $ | (65,270) |  |  | $ | — |  |  | $ | 6,646 |  |  | $ | (58,624) |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefits were as follows (in thousands):
| Year ended December 31,
| 2025 |  | 2024 |  | 2023
Beginning balance | $ | 19,812 |  |  | $ | 15,306 |  |  | $ | 17,251 |
Additions/(reductions) based on tax positions related to the current year | (11) |  |  | 4,506 |  |  | (1,945) |
Additions/(reductions) for tax positions related to prior years | — |  |  | — |  |  | — |
Ending balance | $ | 19,801 |  |  | $ | 19,812 |  |  | $ | 15,306 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of supplemental cash flow information for the periods presented. + References No definition available. + Details
Name: | us-gaap_ScheduleOfCashFlowSupplementalDisclosuresTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-9 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-2 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12A -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12A Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 217 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-217 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-15A + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-2 + Details
Name: | us-gaap_SummaryOfValuationAllowanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration