Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income tax expense consists of the following (in thousands):

	Year Ended December 31,
	2025		2024

Current:
Federal	$	—	$	—
State		12		16
		12		16
Deferred:
Federal		—		(107	)
State		—		(79	)
		—		(186	)
Provision for (benefit from) income taxes	$	12	$	(170	)

Cash Paid for Income Taxes, Net of Refunds Received

Cash paid for income taxes, net of refunds received, by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 is as follows (in thousands):

	Year Ended December 31,
	2025		2024
Federal	$	—	$	—
State
Texas		9		10
Cash paid for income taxes, net of refunds received	$	9	$	10

Components of Deferred Tax Liability for Federal Income Taxes

Significant components of the Company’s deferred tax liability for federal income taxes consist of the following (in thousands):

	December 31,
	2025			2024
Deferred tax assets:
Net operating loss carryforwards	$	49,215		$	46,295
Intangible assets		2,114			2,308
Inventories		73			57
Reserves and accrued expenses		1,539			2,068
Stock-based compensation		220			162
Operating lease liabilities		242			305
Interest expense limitation carryover		1,270			1,024
Goodwill		318			239
Property and equipment		264			—
Gross deferred tax assets		55,255			52,458
Less: valuation allowance		(55,013	)		(51,671	)
		242			787
Deferred tax liabilities:
Property and equipment		—			(478	)
Operating lease right-of-use assets		(242	)		(309	)
Gross deferred tax liabilities		(242	)		(787	)
Net deferred tax liability	$	—		$	—

Net Operating Loss Carryforwards

The Company had net operating loss (“NOL”) carryforwards for federal and state income tax purposes as follows (in thousands):

	December 31,
	2025		2024

Federal	$	206,801	$	203,490
State	$	68,999	$	62,819

Reconciliation of Income Tax Expense

A reconciliation of income tax expense at the statutory federal income tax rate and income taxes as reflected in the consolidated financial statements is as follows in accordance with the adoption of ASU 2023-09, which became effective in the year ended December 31, 2025 (numbers in thousands):

	Year Ended December 31, 2025

Federal tax expense at statutory rate	$	(1,312	)	21.00	%
State and local tax, net of federal benefit
California		—		—	%
New York State		—		—	%
New Jersey		—		—	%
Florida		—		—	%
Other		9		(0.15	)%
Change in valuation allowance		738		(11.81	)%
Nontaxable or nondeductible items
Nondeductible meal and entertainment expenses		97		(1.55	)%
Nondeductible incentive stock option compensation		83		(1.33	)%
Other		—		—	%
Other adjustments
NOL expiration		476		(7.62	)%
Other		(79	)	1.27	%
Effective income tax rate	$	12		(0.19	)%

A reconciliation of income tax expense at the statutory federal income tax rate and income taxes as reflected in the consolidated financial statements is as follows:

	Year Ended December 31, 2024

Federal tax expense at statutory rate	21.00	%
State tax, net of federal benefit	(0.12)	%
Permanent differences	(1.15)	%
Other difference and true ups	(3.13)	%
Change in valuation allowance	(14.94)	%
Effective income tax rate	1.66	%