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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

INCOME TAXES [Abstract]

Income (Loss) Before Income Taxes

The following table summarizes income (loss) before income taxes:

			Year Ended
			December 31, 2025
Domestic		$	(10,335	)
Foreign			-
Total		$	(10,335	)

Components of Income Tax Expense (Benefit)

The Company's income tax expense (benefit) is as follows:

			Year Ended
			December 31, 2025
U.S. Federal		$	-
State			-
Foreign			-
Current income tax expense (benefit)			-
U.S. Federal			-
State			-
Foreign			-
Deferred income tax expense (benefit)			-
Total income tax expense (benefit)		$	-

The provision/(benefit) for Income Taxes for the year ended December 31, 2024, consists of the following:

	Year Ended
	December 31, 2024
Current Tax Expense/(Benefit)
Deferred Tax Expense/(Benefit)	$	(2,712	)
Change in Valuation Allowance		2,712
Income Tax Provision/(Benefit)	$	-

Reconciliation of Statutory to Effective Federal Tax Rate

The following is a reconciliation from the Company's statutory rate to the effective tax rate reported in the financial statements:

		Year Ended
		December 31, 2025
Statutory Federal Income Tax Rate		$	(2,170	)			21.0	%
State and local income taxes, net of federal benefit of state			(978	)			9.5	%
Foreign Tax Effects			-				0.0	%
Federal Law Changes			-				0.0	%
Total Effect of Cross-Border Tax Laws			-				0.0	%
Tax Credits (Federal)			-				0.0	%
Valuation Allowance			3,440				(33.3	)%
Non-Deductible or Non-Taxable Items			(584	)			5.7	%
Unrecognized Tax Benefits			-				0.0	%
Other Adjustments			292				(2.9	)%
Effective Income Tax Rate		$	-				0.0	%

The Company’s effective income tax rate is different from the federal statutory tax rate in 2024 predominantly due to the valuation allowance, permanent differences, and state taxes. A reconciliation of the statutory U.S. Federal Tax Rate to the Company's Effective Tax Rate is as follows:

	Year Ended
	December 31, 2024
U.S. Statutory Federal Income Tax Rate	$	(1,234	)
State Income Taxes, net of Federal Income tax Benefit		(67	)
Permanent differences and other		(1,411	)
Valuation Allowance		2,712
Income Tax Provision/(Benefit)	$	-

Deferred Tax Assets and Liabilities

The tax effect of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases that give rise to deferred tax assets and liabilities is as follows:

			Year Ended
			December 31, 2025
Capitalized Sec. 174 expenses		$	1,137
Stock-based compensation			2,631
Tax credits			81
Net operating losses - U.S.			22,195
Accruals and other			967
Gross deferred tax assets			27,011
Valuation allowance			(26,455	)
Net deferred tax assets			556
Deferred tax liabilities
Capital Lease - ROU Asset			(516	)
Prepaid Expense			(40	)
Total deferred tax liabilities			(556	)
Total deferred tax assets (liabilities)		$	-

Deferred income taxes represent the tax effect of transactions that are reported in different periods for financial and tax reporting purposes. The combined temporary differences and carryforwards of each tax paying component of the Company that give rise to a significant portion of the deferred income tax benefits and liabilities are as follows as of December 31, 2024:

	Year Ended
	December 31, 2024
Deferred income tax assets:
Net operating loss carryforwards	$	18,832
Sec. 174 capitalization		1,931
Research and development credits		81
Stock Based Compensation		1,708
Accruals and Other		925
Total deferred tax assets (gross)		23,477
Less valuation allowance		(23,015	)
Net deferred tax assets		462
Deferred income tax liabilities:		-
Depreciation and other		(462	)
Net deferred tax liabilities	$	(462	)
Net deferred income taxes	$	-

Unrecognized Tax Benefits

The Company is subject to income tax in multiple jurisdictions, including federal, states, and city jurisdictions. The Company has federal, state, and city income tax returns that are open to examination from 2022, 2023, and 2024. In addition, the utilization of tax carryforwards from periods prior to those previously mentioned may also be audited by the taxing authorities once utilized.

			Year Ended
			December 31, 2025
Balance as of December 31, 2024		$	-
Additions based on tax positions related to the current year			-
Additions for tax positions of prior years			-
Reductions for tax positions of prior years			-
Reductions related to settlements			-
Reductions from lapse of statute of limitations			-
Balance as of December 31, 2025		$	-

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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.

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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.

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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.

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Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

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Tabular disclosure of the change in unrecognized tax benefits.

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