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