INCOME TAXES (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Income (Loss) Before Income Taxes |
The components of income (loss) before income taxes were as follows:
|
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Years Ended December 31, |
(in thousands) |
2025 |
|
2024 |
|
|
| United States |
$ |
(29,928) |
|
|
$ |
(31,268) |
|
|
|
| Foreign |
3,227 |
|
|
3,980 |
|
|
|
| Total loss |
$ |
(26,701) |
|
|
$ |
(27,288) |
|
|
|
|
| Schedule of Provision for Income Taxes |
The provision for income taxes consisted of the following:
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|
Years Ended December 31, |
(in thousands)
|
2025 |
|
2024 |
|
|
| Current tax expense: |
|
|
|
|
|
| Federal |
$ |
360 |
|
|
$ |
(11) |
|
|
|
| State |
304 |
|
|
710 |
|
|
|
| Foreign |
1,513 |
|
|
2,071 |
|
|
|
| Total current tax expense |
$ |
2,177 |
|
|
$ |
2,770 |
|
|
|
|
|
|
|
|
|
| Deferred tax expense: |
|
|
|
|
|
| Federal |
$ |
42 |
|
|
$ |
(634) |
|
|
|
| State |
(526) |
|
|
364 |
|
|
|
| Foreign |
245 |
|
|
(1,101) |
|
|
|
| Total deferred tax expense |
$ |
(239) |
|
|
$ |
(1,371) |
|
|
|
|
|
|
|
|
|
| Provision for Income Taxes |
$ |
1,938 |
|
|
$ |
1,399 |
|
|
|
|
| Schedule of Reconciliation of Effective Tax Rate |
The following is a reconciliation between the U.S. federal statutory tax rate and our effective tax rate for the current year, expressed in thousands and as a percentage of pre-tax income:
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December 31,
2025 |
(in thousands)
|
Amount |
|
Percent |
| Tax expense (benefit) computed at U.S. federal statutory rate |
$ |
(5,607) |
|
|
21.0 |
% |
State and Local Income Taxes, Net of Federal Income Tax Effect (1)
|
(78) |
|
|
0.3 |
|
| Foreign tax effects |
|
|
|
| Israel: |
|
|
|
Stock-based compensation(2)
|
611 |
|
|
(2.3) |
|
| Other |
235 |
|
|
(0.9) |
|
| Other foreign jurisdictions |
558 |
|
|
(2.1) |
|
| Effects of cross-border tax laws |
|
|
|
Foreign branch income |
582 |
|
|
(2.2) |
|
Deduction for foreign taxes |
(281) |
|
|
1.1 |
|
| Other effects |
122 |
|
|
(0.5) |
|
| Tax credits: |
|
|
|
| R&D tax credits |
(160) |
|
|
0.6 |
|
| Changes in valuation allowance |
3,974 |
|
|
(14.9) |
|
| Nontaxable or nondeductible items: |
|
|
|
Stock-based compensation(2)
|
1,683 |
|
|
(6.3) |
|
| Section 162(m) - executive compensation |
284 |
|
|
(1.1) |
|
| Other nontaxable or nondeductible items |
277 |
|
|
(1.0) |
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| Changes in unrecognized tax benefits |
7 |
|
|
— |
|
| Other adjustments |
(269) |
|
|
1.0 |
|
| Effective income tax rate |
$ |
1,938 |
|
|
(7.3) |
% |
(1)States that make up the majority (>50%) of state and local taxes are California, Texas, and Illinois.
(2)Stock-based compensation includes non-deductible equity compensation and tax effects of shortfalls and windfalls.
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December 31,
2024 |
| Statutory rate |
|
21.0 |
% |
| Foreign provision |
|
(0.2) |
|
| State/province income tax |
|
2.7 |
|
| Stock compensation |
|
(9.6) |
|
| Unrecognized tax benefits |
|
(0.1) |
|
| Research credit |
|
2.5 |
|
Return to provision |
|
5.8 |
|
Other foreign branch impacts |
|
(4.6) |
|
| Valuation allowance |
|
(17.5) |
|
| Foreign-derived intangible income deduction (FDII) |
|
0.2 |
|
| Global intangible low taxed income (GILTI) |
|
(0.5) |
|
| Non-deductible expenses-other |
|
(4.0) |
|
| Foreign branch income |
|
(3.1) |
|
| Foreign tax deduction |
|
1.8 |
|
| Fair value adjustment on warrants |
|
0.8 |
|
Foreign tax settlement |
|
— |
|
| Other |
|
(0.3) |
|
| Effective tax rate |
|
(5.1) |
% |
|
| Schedule of Income Tax Payments, Net of Refunds Received |
The Company made income tax payments (net of refunds received) during the year ended December 31, 2025, as follows:
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|
(in thousands)
|
|
Year Ended December 31, 2025 |
| Federal |
|
|
$ |
— |
|
| State |
|
|
132 |
|
| Foreign: |
|
|
|
| Israel |
|
|
920 |
|
| Serbia |
|
|
363 |
|
| Singapore |
|
|
152 |
|
Other foreign jurisdictions |
|
|
(13) |
|
| Total cash paid for income taxes (net of refunds received) |
|
|
$ |
1,554 |
|
|
| Schedule of Deferred Tax Assets and Liabilities |
Deferred tax assets and liabilities consist of the following (in thousands):
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December 31, |
|
2025 |
|
2024 |
| Deferred tax assets: |
|
|
|
| Net operating loss carryforwards |
$ |
3,300 |
|
|
$ |
2,941 |
|
| Tax credit carryforwards |
1,884 |
|
|
2,545 |
|
| Accrued liabilities |
2,990 |
|
|
3,782 |
|
| Stock compensation |
5,113 |
|
|
5,954 |
|
| Charitable contribution |
399 |
|
|
1 |
|
Intangibles |
4,327 |
|
|
— |
|
|
|
|
|
Section 174 amortization(1)
|
14,663 |
|
|
15,671 |
|
| Operating lease liabilities |
2,495 |
|
|
2,231 |
|
Other |
182 |
|
|
84 |
|
| Total gross deferred tax assets |
$ |
35,353 |
|
|
$ |
33,209 |
|
| Less: Valuation allowance |
(27,911) |
|
|
(23,827) |
|
| Total deferred tax assets |
$ |
7,442 |
|
|
$ |
9,382 |
|
| Deferred tax liabilities: |
|
|
|
| Intangibles |
— |
|
|
638 |
|
| Property and equipment |
917 |
|
|
2,486 |
|
| Prepaid expenses |
1,148 |
|
|
1,100 |
|
| Operating lease assets |
1,816 |
|
|
2,140 |
|
| Other |
37 |
|
|
— |
|
| Total deferred tax liabilities |
$ |
3,918 |
|
|
$ |
6,364 |
|
| Deferred tax assets (liability), net |
$ |
3,524 |
|
|
$ |
3,018 |
|
|
|
|
|
(1)Section 174 amortization for the year ended December 31, 2024 has been reclassified to conform to the current year presentation.
|
| Schedule of Unrecognized Tax Benefits Roll Forward |
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits:
|
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|
Years Ended December 31, |
|
2025 |
|
2024 |
|
|
| Balance at beginning of period |
$ |
525 |
|
|
$ |
347 |
|
|
|
| Increases for tax positions of prior years |
— |
|
|
170 |
|
|
|
| Increases for tax positions of current year |
98 |
|
|
170 |
|
|
|
| Decreases for tax positions of prior years |
(68) |
|
|
(14) |
|
|
|
|
|
|
|
|
|
| Decreases for lapses in statute of limitations |
(77) |
|
|
$ |
(148) |
|
|
|
| Balance at end of period |
$ |
478 |
|
|
$ |
525 |
|
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