Annual report [Section 13 and 15(d), not S-K Item 405]

INCOME TAXES (Tables)

v3.26.1
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2025
INCOME TAXES  
Schedule of components of the income tax provision

​

​

​

​

​

​

​

​

​

​

Years Ended December 31, 

($’s in thousands)

  ​ ​ ​

2025

  ​ ​ ​

2024

Current:

​

​

  ​

​

​

  ​

Federal

​

$

—

​

$

2

State

​

 

60

​

​

58

Total current

​

 

60

​

​

60

​

​

​

​

​

​

​

Deferred:

​

 

​

​

​

​

Federal

​

 

(2,223)

​

​

(2,704)

State

​

 

(44)

​

​

(1,184)

Total deferred

​

 

(2,267)

​

​

(3,888)

Valuation allowance

​

​

2,267

​

​

3,889

Total income tax expense

​

$

60

​

$

61

Schedule of company's deferred tax assets

​

​

​

​

​

​

​

​

​

​

December 31, 

($’s in thousands)

  ​ ​ ​

2025

  ​ ​ ​

2024

Deferred tax assets:

​

​

  ​

​

​

  ​

Net operating loss carryforwards

​

$

8,036

​

$

6,814

Amortization of license fees

​

 

5,480

​

​

5,670

R&D capitalization

​

 

2,711

​

​

4,714

Stock compensation

​

 

2,077

​

​

1,647

Lease liability

​

​

29

​

​

51

Reserve on sales return, discount and bad debt

​

 

4,636

​

​

2,471

Accruals and reserves

​

 

1,445

​

​

850

Tax credits

​

 

1,493

​

​

1,493

Business interest expense deduction limit

​

 

321

​

​

373

State taxes

​

 

18

​

​

10

Other

​

​

91

​

​

—

Total deferred tax assets

​

 

26,337

​

​

24,093

Less: valuation allowance

​

​

(26,310)

​

​

(24,043)

Deferred tax assets, net

​

$

27

​

$

50

​

​

​

​

​

​

​

Deferred tax liability:

​

​

​

​

​

​

Right-of-use asset

​

​

(27)

​

​

(50)

Deferred tax assets, net

​

$

—

​

$

—

Schedule of reconciliation of income tax computed at the federal statutory rate, statutory tax rates and the effective tax rates

​

​

​

​

​

​

​

​

​

  ​ ​ ​

Years Ended December 31,

 

​

​

2025

 

($’s in thousands)

  ​ ​ ​

Amount

  ​ ​ ​

Percent

 

U.S. federal statutory tax rate

​

$

(2,388)

 

21.0

%

State and local income taxes, net of federal income tax effect(1)

​

 

42

 

-0.4

%

Change in valuation allowance

​

 

2,223

 

-19.5

%

Non-deductible items:

​

 

  ​

 

  ​

​

Share-based compensation

​

 

(277)

 

2.4

%

Non-deductible compensation

​

 

406

 

-3.6

%

Other

​

 

85

 

-0.7

%

Other adjustments

​

 

(31)

 

-0.3

%

Provision for income taxes and effective income tax rate

​

$

60

 

-0.5

%

(1)

During the year ended December 31, 2025, state taxes in Arizona, California, New York, New Jersey, Florida, and Texas comprised greater than 50% of the tax effect in this category.

​

​

​

​

​

​

​

Years Ended December 31, 

​

​

  ​ ​ ​

2024

​

Percentage of pre-tax income:

​

  ​

​

U.S. federal statutory income tax rate

 

21

%

State taxes, net of federal benefit

 

3

%

Non-deductible items

 

-2

%

State tax adjustments

 

3

%

Change in valuation allowance

​

-28

%

Share-based compensation

​

2

%

Effective income tax rate

 

-1

%

Schedule of income taxes paid

​

​

​

​

​

​

  ​ ​ ​

Years Ended December 31,

($’s in thousands)

​

2025

Federal

​

$

1

State

​

 

  ​

Texas

​

$

45

Other

​

 

4

Total net payments (refunds)

​

$

50

​