XML 60 R34.htm IDEA: XBRL DOCUMENT
v3.25.4

INCOME TAXES (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Schedule of domestic and foreign components of income (loss) before income taxes | Domestic and foreign components of loss before income taxes are as follows (in thousands):
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
Domestic | $ | (98,691) |  |  | $ | (179,555) |  |  | $ | (122,026) |
Foreign | (4,797) |  |  | (9,749) |  |  | (12,676) |
Loss before income taxes | $ | (103,488) |  |  | $ | (189,304) |  |  | $ | (134,702) |
Schedule of components of income tax (expense) benefit | The significant components of income tax (expense) benefit are as follows (in thousands):
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
Current: |  |  |  |  |
Federal | $ | — |  |  | $ | — |  |  | $ | — |
State | — |  |  | — |  |  | — |
Foreign | — |  |  | — |  |  | — |
Total current | — |  |  | — |  |  | — |
Deferred: |  |  |  |  |
Federal | — |  |  | — |  |  | — |
State | — |  |  | — |  |  | — |
Foreign | — |  |  | — |  |  | — |
Change in uncertain tax positions | — |  |  | — |  |  | — |
Change in valuation allowance | — |  |  | — |  |  | — |
Total deferred | — |  |  | — |  |  | — |
Income tax benefit | $ | — |  |  | $ | — |  |  | $ | — |
We adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, on a prospective basis beginning with the year ended December 31, 2025. A reconciliation of the statutory U.S. federal income tax rate to our effective income tax rate for the year ended December 31, 2025 is presented accordingly as follows (dollar amounts in thousands):
| Year Ended December 31, 2025
| Amount |  | Percent
Statutory federal income tax rate | $ | (21,732) |  |  | 21.00 | %
State and local income taxes, net of federal benefit | — |  |  | — | %
Tax credits |  |  |
Federal research & development | (1,490) |  |  | 1.44 | %
Changes in valuation allowance | 5,263 |  |  | (5.09) | %
Nontaxable or nondeductible items |  |  |
Stock compensation | 5,705 |  |  | (5.51) | %
Goodwill impairment | 10,316 |  |  | (9.97) | %
Other | 321 |  |  | (0.31) | %
Other reconciling items | 237 |  |  | (0.23) | %
Unrecognized tax benefits | 373 |  |  | (0.36) | %
Foreign tax effects: |  |  |
United Kingdom: |  |  |
Fair value adjustments | 2,228 |  |  | (2.15) | %
Other | (1,234) |  |  | 1.19 | %
Other jurisdictions | 13 |  |  | (0.01) | %
Total provision for income taxes | $ | — |  |  | — | %
Schedule of effective tax rate | The following table summarizes the significant differences between the U.S. federal statutory tax rate and our effective tax rate for the years ended December 31, 2024 and 2023 based on the required disclosure prior to our adoption of ASU 2023-09:
| Year Ended December 31,
| 2024 |  | 2023
Tax benefit at federal statutory rate | 21.00 | % |  | 21.00 | %
State income taxes, net of federal benefit | — | % |  | (0.01) | %
Change in federal and state statutory rate | 1.69 | % |  | 0.01 | %
Foreign rate differential | 0.06 | % |  | (0.22) | %
Goodwill impairment | (13.06) | % |  | (10.94) | %
Contingent liability remeasurement | (0.78) | % |  | (0.81) | %
Other adjustments | (1.61) | % |  | (1.40) | %
Valuation allowance | (7.24) | % |  | (7.54) | %
Income tax benefit | 0.06 | % |  | 0.09 | %
Schedule of deferred income taxes | Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Certain unrecognized tax benefits are presented as a reduction to related deferred tax assets in our consolidated balance sheets. The significant components of deferred income taxes as of December 31, 2025 and 2024 are as follows (in thousands):
| December 31,
| 2025 |  | 2024
Deferred tax assets: |  |  |
Net operating loss carry-forwards | $ | 176,226 |  |  | $ | 161,418 |
Allowance for credit losses | 860 |  |  | 1,474 |
Depreciation and amortization | 17,374 |  |  | 23,233 |
Stock-based compensation | 2,329 |  |  | 3,025 |
Deferred costs | — |  |  | 740 |
Lease liability | 1,345 |  |  | 1,867 |
Other tax credit carry-forward | 12,742 |  |  | 11,625 |
Other | — |  |  | 1,451 |
Total | 210,876 |  |  | 204,833 |
Valuation Allowance | (209,423) |  |  | (203,377) |
Total deferred tax assets, net of valuation allowance | $ | 1,453 |  |  | $ | 1,456 |
Deferred tax liabilities: |  |  |
Right of use assets | (995) |  |  | (1,457) |
Deferred costs | (332) |  |  | — |
Other | (126) |  |  | — |
Total deferred tax liabilities | (1,453) |  |  | (1,457) |
Net long-term deferred tax asset | $ | — |  |  | $ | — |
Summary of changes in valuation allowance | We recorded a valuation allowance for deferred tax assets of $209.4 million, $203.4 million, and $189.7 million as of December 31, 2025, 2024, and 2023, respectively. The net increase of our valuation allowance each year is primarily due to the continued generation of net operating loss carryforwards.
Schedule of unrecognized tax benefits activity | The following table summarizes the activity related to our gross unrecognized tax benefits that would affect our effective tax rate, if recognized (in thousands):
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
Beginning balance | $ | 3,550 |  |  | $ | 2,925 |  |  | $ | 1,606 |
Increase related to current year tax position | 373 |  |  | 625 |  |  | 1,319 |
Ending balance | $ | 3,923 |  |  | $ | 3,550 |  |  | $ | 2,925 |

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 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 income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(1)(Note 1)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
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