XML 39 R24.htm IDEA: XBRL DOCUMENT
v3.25.2

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | 12. Income Taxes The components of loss before income taxes are as follows (in thousands):
|  | Year Ended December 31, |
|  | 2024 |  |  | 2023 |
|  | (Restated) |  |  | (Restated) |
U.S. |  | $ | (7,304 | ) |  | $ | (83,469 | )
Foreign |  | 824 |  |  |  | 916 |
Loss before income taxes |  | $ | (6,480 | ) |  | $ | (82,553 | )
The reconciliation between the effective tax rate and the statutory federal income tax rate is as follows:
|  | Year Ended December 31, |
|  | 2024 |  | 2023 |
|  | (Restated) |  |  | (Restated) |
U.S. statutory federal income tax rate |  |  | 21.0 | % |  |  | 21.0 | %
State income taxes, net of federal income tax benefit |  |  | 53.1 | % |  |  | 7.0 | %
Change in fair value of financial instruments |  |  | 149.8 | % |  |  | 2.7 | %
Tax credits |  |  | 1.7 | % |  |  | 0.4 | %
Valuation allowance |  |  | (234.0 | )% |  |  | (30.2 | )%
Non-deductible expenses |  |  | (6.0 | )% |  |  | (0.8 | )%
Other |  |  | 3.3 | % |  |  | (0.4 | )%
Effective tax rate |  |  | (11.1 | )% |  |  | (0.3 | )%
Significant components of the Company’s deferred tax assets are as follows (in thousands):
|  | December 31, |
|  | 2024 |  |  | 2023 |
U.S. federal and state net operating loss carryforwards |  | $ | 49,591 |  |  | $ | 36,092 |
Capitalized start-up and research and development expenses |  |  | 13,362 |  |  |  | 10,868 |
Research and development tax credits |  |  | 2,436 |  |  |  | 2,275 |
Interest expense |  |  | 6,639 |  |  |  | 3,918 |
Lease liability |  |  | 485 |  |  |  | 659 |
Depreciation |  |  | 151 |  |  |  | 203 |
Bad debt reserve |  |  | 1,831 |  |  |  | 3,461 |
Accrued costs |  |  | 5,456 |  |  |  | 2,075 |
Other temporary differences |  |  | 1,870 |  |  |  | 70 |
Total deferred tax assets |  |  | 81,821 |  |  |  | 59,621 |
Valuation allowance |  |  | (77,750 | ) |  |  | (57,985 | )
Net deferred tax assets |  |  | 4,071 |  |  |  | 1,636 |
Right of use asset |  |  | (451 | ) |  |  | (623 | )
Other deferred tax liability |  |  | (66 | ) |  |  | (1,013 | )
Convertible debt |  |  | (3,358 | ) |  |  | — |
Total deferred tax liabilities |  |  | (3,875 | ) |  |  | (1,636 | )
Net deferred tax asset |  | $ | 196 |  |  | $ | — |
The Company recorded income tax expense of $0.7 million during the year ended December 31, 2024 due to foreign operating income. The Company recorded $0.3 million of income tax expense during the year ended December 31, 2023. The Company maintains a valuation allowance for the full amount of the net United States deferred tax assets, as the realization of the deferred tax assets is not determined to be more likely than not. The valuation allowance increased for the years ended December 31, 2024 and 2023 by approximately $19.8 million and $24.5 million, respectively, due to an increase in deferred tax assets having a full valuation allowance primarily due to the operating losses incurred, capitalized research and development expenses and tax credits generated. As of December 31, 2024, the Company had $181.5 million and $181.6 million of federal and state NOL carryforwards, respectively. Of the federal NOL carryforwards, $12.8 million expire between 2030 and 2037 and $168.7 million do not expire. The state NOL carryforwards expire between 2030 and 2044. As of December 31, 2024, the Company had $1.6 million and $1.0 million of federal and state research and development tax credits, which expire beginning in 2031 and 2028, respectively. Changes to the Company’s valuation allowance are as follows (in thousands):
|  | Year Ended December 31, |
|  | 2024 |  |  | 2023 |
Beginning balances |  | $ | 57,985 |  |  | $ | 33,484 |
Additions charged to net loss |  |  | 19,765 |  |  |  | 24,501 |
Ending balances |  | $ | 77,750 |  |  | $ | 57,985 |
Realization of the future tax benefits from these assets is dependent on many factors, including the Company’s ability to generate taxable income within the net operating loss carryforward period. Under the provisions of the Internal Revenue Code, certain substantial changes in the Company’s ownership, including a sale of the Company or significant changes in ownership due to sales of equity, may have limited, or may limit in the future, the amount of net operating loss and research and development credit carryforwards that could be used annually to offset future taxable income. The Company has not completed a study to assess whether a change of control has occurred or whether there have been multiple changes of control since the Company’s formation due to the significant complexity and cost associated with such study and because there could be additional changes in control in the future. As a result, the Company is not able to estimate the effect of the change in control, if any, on the Company’s ability to utilize net operating loss and research and development credit carryforwards in the future. The Company is subject to US federal income tax, state income tax in Massachusetts, and income tax in certain foreign jurisdictions. The Company’s historical income taxes in foreign jurisdictions have been immaterial to the consolidated financial statements. The Company is not currently under examination by the Internal Revenue Service (“IRS”) or any other jurisdictions for any tax years; however, all tax years since inception remain open to examination by the major taxing jurisdictions to which the Company is subject, as carryforward attributes generated in years past may still be adjusted upon examination by the U.S. IRS or other authorities if they have, or will be, used in a future period. As of December 31, 2024 and 2023, the unremitted earnings of the Company’s foreign subsidiaries are immaterial. Interpretive guidance on the accounting for global intangible low-taxed income (“GILTI”) states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred as a period expense. The Company made the accounting policy election to recognize GILTI as a period expense. As of December 31, 2024 and 2023, the Company has no t recorded a tax liability for any uncertain tax positions. Interest and penalties associated with uncertain tax positions are recorded as a component of income tax expense. There are no accrued interest and penalties as of December 31, 2024 and 2023.

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