XML 37 R20.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The Company’s loss before income taxes was generated from its U.S. operations and foreign operations as follows:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
United States | $ | 33,349 |  |  | $ | 51,004 |  |  | $ | 66,103 |
Foreign | 16,407 |  |  | 10,505 |  |  | 8,214 |
Loss before taxes | $ | 49,756 |  |  | $ | 61,509 |  |  | $ | 74,317 |
The following table shows the expense (benefit) for income taxes:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Current provision: |  |  |  |  |
Federal | $ | — |  |  | $ | — |  |  | $ | — |
State | 279 |  |  | 138 |  |  | 113 |
Foreign | 406 |  |  | 33 |  |  | — |
Total current provision | $ | 685 |  |  | $ | 171 |  |  | $ | 113 |
Deferred provision (benefit): |  |  |  |  |
Federal | $ | (18) |  |  | $ | 1 |  |  | $ | (8) |
State | (3) |  |  | 4 |  |  | (10) |
Foreign | — |  |  | — |  |  | — |
Total deferred (benefit) provision | $ | (21) |  |  | $ | 5 |  |  | $ | (18) |
Total provision for income taxes | $ | 664 |  |  | $ | 176 |  |  | $ | 95 |
As of December 31, 2024, the Company has federal net operating loss (“NOL”) carryforwards of $315,179, of which $68,301 will begin to expire in 2034. The federal NOLs generated in 2018 and in the subsequent years in the amount of $246,877 have an indefinite carryforward period. As of December 31, 2024, the Company has state NOL carryforwards of $231,980, which will begin to expire in 2024. As of December 31, 2024, the Company has foreign NOL carryforwards of $38,922, which can be carried forward indefinitely. As of December 31, 2024, the Company has federal research and development (“R&D”) credit carryforwards of $2,929, which will begin to expire in 2034. The Company also has California R&D credit carryforwards of $2,918, which has an indefinite carryforward period. In general, if a company experiences a greater than 50 percentage point aggregate change in ownership of certain significant stockholders over a three-year period, utilization of its pre-change NOL carryforwards and R&D credit carryforwards, and interest expense under section 163(j), is subject to an annual limitation under Sections 382 and 383 of the Internal Revenue Code of 1986, as amended, and similar state laws. The annual limitation may result in the expiration of the Company’s tax attribute carryforwards before utilization and may be material. The Company has completed a study to evaluate whether an ownership change, as defined by Section 382 of the Internal Revenue Code, occurred from the Company's formation through December 31, 2023. Based on the findings of this study, the Company has determined that several ownership changes have occurred. Consequently, the Company’s tax attribute carryforwards allocable to the periods preceding the ownership change are subject to limitation under Section 382. However, it is important to note that the Company’s tax attribute carryforwards, which include net operating losses (NOLs), research and development (R&D) credits, and interest expense under Section 163(j), are not anticipated to expire unused, solely due to the limitations under Section 382. The Company started but has not completed a study to determine whether its tax attribute carryforwards generated through December 31, 2024, are likely to be limited by Section 382 and 383. The Company’s net deferred income tax assets have been offset by a valuation allowance. Therefore, any resulting reduction to the Company’s tax attribute carryforwards once the analysis is completed will be offset by a corresponding reduction of the valuation allowance and there would be no impact on the Company’s consolidated balance sheet, statement of operations, or cash flows. The components of deferred tax assets and liabilities were as follows:
| As of December 31,
| 2024 |  | 2023 |  | 2022
Deferred income tax assets: |  |  |  |  |
Net operating losses | $ | 86,277 |  |  | $ | 83,257 |  |  | $ | 80,494 |
Stock compensation | 7,808 |  |  | 5,442 |  |  | 5,168 |
Research and development credits | 2,617 |  |  | 2,617 |  |  | 2,617 |
Accrued compensation | 6,405 |  |  | 5,955 |  |  | 4,675 |
Operating lease liabilities | 2,152 |  |  | 1,567 |  |  | 646 |
Accrued legal settlement | 16,283 |  |  | 17,674 |  |  | 19,203 |
R&E capitalization | 4,107 |  |  | 3,415 |  |  | 1,100 |
Fixed asset depreciation | 26 |  |  | 183 |  |  | — |
Other, net | 8,382 |  |  | 5,126 |  |  | 2,135 |
Valuation allowance | (124,895) |  |  | (116,073) |  |  | (103,695) |
Total deferred income tax assets | 9,162 |  |  | 9,163 |  |  | 12,343 |
Deferred income tax liabilities: |  |  |  |  |
Intangible amortization | (7,343) |  |  | (7,730) |  |  | (11,525) |
Operating lease right-of-use assets | (1,825) |  |  | (1,460) |  |  | (495) |
Fixed asset depreciation | — |  |  | — |  |  | (345) |
Total deferred income tax liabilities | (9,168) |  |  | (9,190) |  |  | (12,365) |
Net deferred income taxes | $ | (6) |  |  | $ | (27) |  |  | $ | (22) |
A reconciliation of the difference between the provision (benefit) for income taxes and income taxes at the statutory U.S. federal income tax rate is as follows:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Income tax at statutory rate | $ | (10,413) |  |  | $ | (12,917) |  |  | $ | (15,607) |
State income taxes, net of federal benefit | (753) |  |  | (1,981) |  |  | (2,673) |
Revaluation of contingent royalty obligation | 1,823 |  |  | 1,078 |  |  | 1,462 |
Meals and entertainment | 713 |  |  | 385 |  |  | 358 |
Change in state tax rate | 50 |  |  | 218 |  |  | (3) |
Officers' compensation | 1,231 |  |  | 793 |  |  | (1,529) |
Foreign Rate Differential | 443 |  |  | 222 |  |  | 10 |
Stock compensation | (1,377) |  |  | 449 |  |  | 299 |
Other, net | 125 |  |  | (449) |  |  | (391) |
Valuation allowance | 8,822 |  |  | 12,378 |  |  | 18,169 |
Income tax provision | $ | 664 |  |  | $ | 176 |  |  | $ | 95 |
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Beginning balance | $ | 2,924 |  |  | $ | 2,924 |  |  | $ | 2,924 |
Increases to prior year tax positions | — |  |  | — |  |  | — |
Increases to current year tax positions | — |  |  | — |  |  | — |
Ending balance | $ | 2,924 |  |  | $ | 2,924 |  |  | $ | 2,924 |
The Company has considered the amounts and probabilities of the outcomes that can be realized upon ultimate settlement with the tax authorities and determined unrecognized tax benefits primarily related to credits should be established as noted in the summary rollforward above. The Company’s effective income tax rate would not be impacted if the unrecognized tax benefits are recognized. Additional amounts in the summary rollforward could impact the Company’s effective tax rate if it did not maintain a full valuation allowance on its net deferred tax assets. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months. The Company’s policy is to recognize interest expense and penalties related to income tax matters as a component of income tax expense. There were no accrued interest and penalties associated with uncertain tax positions as of December 31, 2024, 2023, and 2022. The Company’s tax returns for all years since inception are open for audit. The Internal Revenue Service (“IRS”) commenced an examination of our U.S. income tax returns for the tax year ended December 31, 2022, in the third quarter of 2024. The exam is still in progress. As of December 31, 2024, the IRS has not proposed any adjustments to our tax positions.

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 The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -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 Reference 2: 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 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration