XML 36 R24.htm IDEA: XBRL DOCUMENT v3.26.1
INCOME TAXES
 3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
INCOME TAXES

 

15.INCOME TAXES

 

The income tax expense for the three months ended March 31, 2026 was approximately $52,000 comprised of current state tax expense of $39,000 and foreign tax expense of $13,000. The income tax expense for the three months ended March 31, 2025 was approximately $41,000 comprised of a current tax expense of $30,000 and a foreign tax expense of $11,000. There was no deferred income tax for both the three months ended March 31, 2026 and 2025, respectively.

 

The current income tax provision for the three months ended March 31, 2026 and 2025 primarily relates to state minimum taxes and foreign income taxes.

 

The Company previously incurred losses, which make realization of a deferred tax asset difficult to support in accordance with ASC 740. Accordingly, a valuation allowance has been recorded against the federal and state deferred tax assets as of March 31, 2026 and December 31, 2025.

 

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law, extending key provisions of the 2017 Tax Cuts and Jobs Act including, but not limited to, federal bonus depreciation and deductions for domestic research and development expenditures. OBBBA did not have a material impact on the Company’s condensed consolidated financial statements.