XML 27 R19.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | 10. Income Taxes The Company’s consolidated financial statements include a tax expense of $0.2 million and $0.1 million on (loss) income before taxes of $21.1 million and $67.2 million for the years ended December 31, 2024 and 2023, respectively. The income tax expense consisted of the following (dollars in thousands):
|  | Years Ended December 31, |
|  | 2024 |  |  | 2023 |
Current expense: |  |  |  |  |  |
U.S. |  | $ | 151 |  |  | $ | 138 |
Non-U.S |  |  | — |  |  |  | — |
Total current expense |  | $ | 151 |  |  | $ | 138 |
Reconciliations of the differences between the expense for income taxes and income taxes at the statutory U.S. federal income tax rate is as follows (dollars in thousands):
|  | 2024 |  |  | 2023 |
|  | Amount |  |  | Percent of Pretax Income |  |  | Amount |  |  | Percent of Pretax Income |
Income taxes from continuing operations at statutory rate |  | $ | (4,439 | ) |  |  | 21.0 | % |  | $ | 14,108 |  |  |  | (21.0 | )%
State income taxes |  |  | (85 | ) |  |  | 0.4 | % |  |  | 406 |  |  |  | (0.6 | )%
State effect of permanent items |  |  | (46 | ) |  |  | 0.2 | % |  |  | 33 |  |  |  | — |
Permanent stock-based compensation |  |  | 91 |  |  |  | (0.4 | )% |  |  | (26 | ) |  |  | — |
Deferred rate change |  |  | 104 |  |  |  | (0.5 | )% |  |  | 1,839 |  |  |  | (2.7 | )%
Warrants issuance |  |  | (2,942 | ) |  |  | 13.9 | % |  |  | 697 |  |  |  | (1.0 | )%
Expiring NOLs and credits |  |  | (5,177 | ) |  |  | 24.5 | % |  |  | 26,355 |  |  |  | (39.2 | )%
Milestone deferral true-up |  |  | 4,285 |  |  |  | (20.3 | )% |  |  | — |  |  |  | — |
Convertible debt amortization |  |  | 538 |  |  |  | (2.6 | )% |  |  | 388 |  |  |  | (0.6 | )%
Deferred stock-based compensation true-up |  |  | 884 |  |  |  | (4.2 | )% |  |  | — |  |  |  | — |
Other |  |  | 227 |  |  |  | (1.1 | )% |  |  | 2 |  |  |  | — |
R&D credit |  |  | (1,235 | ) |  |  | 5.8 | % |  |  | (750 | ) |  |  | 1.1 | %
Increase in valuation allowance |  |  | 7,946 |  |  |  | (37.6 | )% |  |  | (42,914 | ) |  |  | 63.9 | %
Total income tax expense |  | $ | 151 |  |  |  | (0.7 | )% |  | $ | 138 |  |  |  | (0.1 | )%
The components of deferred tax assets and liabilities as of December 31, 2024 and 2023 are as follows (in thousands):
|  | December 31, |
|  | 2024 |  |  | 2023 |
Noncurrent deferred tax assets (liabilities) |  |  |  |  |  |
Accrued expenses |  | $ | 53 |  |  | $ | 75 |
Stock-based compensation |  |  | 2,238 |  |  |  | 2,834 |
Lease liability |  |  | 553 |  |  |  | 631 |
Other |  |  | (2,300 | ) |  |  | (798 | )
Capitalized Sec. 174 R&E |  |  | 13,202 |  |  |  | 10,405 |
Net operating loss carryforwards |  |  | 48,684 |  |  |  | 46,437 |
Research and development credits |  |  | 6,145 |  |  |  | 1,044 |
Total deferred tax assets |  |  | 68,575 |  |  |  | 60,628 |
Valuation allowances |  |  | (68,575 | ) |  |  | (60,628 | )
Net deferred tax assets |  | $ | — |  |  | $ | — |
As of December 31, 2024 and 2023, the Company had available federal net operating loss (“NOL”) carryforwards of approximately $215.7 million and $205.7 million, respectively, and state and net operating loss carryforwards of approximately $122.0 million and $141.2 million, respectively. The Company’s state and net operating loss carryforwards began to expire in 2019. As of December 31, 2024, the Company had available federal research and development credit carryforwards of $5.6 million which began to expire in 2026. For the years ended December 31, 2024 and 2023, the Company paid $0.7 million and zero for U.S. federal and state income taxes, respectively. We completed a Section 382 study of transactions in our stock through December 31, 2023 and concluded that we have experienced ownership changes since inception that we believe under Section 382 and 383 of the Code will result in limitations on our ability to use certain pre-ownership change NOLs and credits. In addition, we may experience subsequent ownership changes as a result of future equity offerings or other changes in the ownership of our stock, some of which are beyond our control. As a result, the amount of the NOLs and tax credit carryforwards presented in our consolidated financial statements are limited and the related amounts have been updated. Similar provisions of state tax law may also apply to limit the use of accumulated state tax attributes. On December 22, 2017, the “Tax Cuts and Jobs Act” was signed into law. The tax reform has the following effects on the Company: (1) permanently reduces the maximum corporate income tax rate from 35% to 21% effective for tax years beginning after December 31, 2017, (2) allows temporary 100% expensing for certain business assets and property placed in service after September 27, 2018 and before January 1, 2023, (3) disallows NOL carrybacks but allows for the indefinite carryforward of those NOLs which applies to losses arising in tax years beginning after December 31, 2018 and, (4) limits NOL deductions for each year equal to the lesser of the available carryover or 80% of a taxpayer’s pre-NOL deduction taxable income. This applies to losses arising in tax years ending on or after December 31, 2017. As of December 31, 2024 and 2023, the Company has concluded that it is more likely than not that the Company will not realize the benefit of its deferred tax assets due to its history of losses. Accordingly, the net deferred tax assets have been fully reserved. All tax years remain open to examination by U.S. federal and state income tax authorities because the Company has incurred cumulative net operating losses since inception. The Company applies ASC 740-10-25-5, Income Taxes, formerly FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, as amended, on January 1, 2009. The difference between the tax benefit recognized in the financial statements and the tax benefit claimed in the tax return is referred to as an unrecognized tax benefit. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits as of December 31, 2024 and 2023 (in thousands):
|  | December 31, |
|  | 2024 |  |  | 2023 |
Unrecognized tax benefit—January 1 |  | $ | 361 |  |  | $ | 436 |
Additions for tax positions of current period |  |  | — |  |  |  | — |
Additions for tax positions of prior periods |  |  | — |  |  |  | — |
Deferred rate change |  |  | (3 | ) |  |  | (75 | )
Unrecognized tax benefit—December 31 |  | $ | 358 |  |  | $ | 361 |
None of the unrecognized tax benefits would, if recognized, affect the effective tax rate because the Company has recorded a valuation allowance to fully offset federal and state deferred tax assets. The Company has no tax positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the coming year. The Company has $0 provided for interest and penalties associated with uncertain 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