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 Tax Disclosure [Abstract]  
SCHEDULE OF INCOME TAX PROVISION

The provision for income taxes for the years ended December 31, 2025, 2024, and 2023 consists of the following:

 

    For the Years Ended December 31  
    2025     2024     2023  
Federal:                        
Current   $ -     $ -     $ -  
Deferred     -       -       -  
                         
State:                        
Current     91       119       -  
Deferred     -       -       -  
                         
Foreign:                        
Current     226       537       1,494  
Deferred     -       -       -  
                         
Income tax provision   $ 317     $ 656     $ 1,494  
SUMMARY OF RECONCILIATION OF STATUTORY FEDERAL INCOME TAX RATE AND EFFECTIVE INCOME TAX RATE

In accordance with ASU 2023-09, the following table summarizes differences between income tax expense (benefit) at the statutory federal income tax rate and as presented on the consolidated statements of operations during the year ended December 31, 2025.

 

Permanent differences:                
    For the Year Ended December 31, 2025
Tax benefit at U.S. federal statutory rate   $ (17,248 )     21.0 %
State income taxes, net of federal benefit (1)     83       (0.1 )%
Nontaxable or non deductible items                
Stock compensation     34       0.0 %
Loss on impairment of intangibles and goodwill     3,758       (4.6 )%
Other permanent differences     (1,928 )     2.3 %
Income from non-includable foreign entities     3,143       (3.8 )%
Foreign tax effects (2)                
India foreign tax expense     225       (0.3 )%
Tax credits     (30 )     0.0 %
Change in valuation allowance     12,280       (14.9 )%
Effective income tax rate   $ 317       (0.4 )%

 

(1) State taxes in California, Florida, and Maryland accumulated to over 50% of the tax effect in this category.
(2) India is the only foreign jurisdiction which meets the 5% threshold.
 

A reconciliation of the statutory federal income tax rate to the Company’s effective tax rate for the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09 is as follows:

 

    2024     2023  
    For the Years Ended December 31  
    2024     2023  
Tax benefit at federal statutory rate     (21.0 )%     (21.0 )%
State income taxes, net of federal benefit     (1.2 )%     0.2 %
Permanent differences:                
Stock compensation     0.2 %     1.5 %
Impairment of intangibles and goodwill     13.5 %     9.8 %
Section 162(m)     0.0 %     1.9 %
Other permanent differences     0.0 %     0.2 %
Tax credits     0.0 %     0.0 %
Income from non-includable foreign entities     2.0 %     1.8 %
Deferred adjustments and true-up     (5.1 )%     2.3 %
Change in valuation allowance     13.5 %     7.3 %
Foreign tax     (1.5 )%     (3.2 )%
Effective income tax rate     0.4 %     0.7 %
 
SCHEDULE OF DISAGGREGATION OF DOMESTIC AND FOREIGN PRE-TAX LOSS

The disaggregation of the Company’s domestic and foreign pre-tax loss for the years ended December 31, 2025, 2024, and 2023, is as follows:

 

    2025     2024     2023  
    For the Years Ended December 31  
    2025     2024     2023  
                   
U.S.   $ (68,101 )   $ (180,327 )   $ (151,883 )
Foreign     (14,967 )     (20,335 )     (50,316 )
Total   $ (83,068 )   $ (200,662 )   $ (202,199 )
SCHEDULE OF INCOME TAXES RECONCILIATION JURISDICTION

A reconciliation of the income tax paid by jurisdiction is as follows:

 

   

For the Year Ended

December 31

  
    2025  
Income Taxes paid (net of refunds)        
U.S. federal   $            -  
U.S. state and local        
Maryland     37  
Texas     31  
Florida     25  
Massachusetts     22  
Georgia     18  
Pennsylvania     18  
Other     24  
U.S. state and local     175  
Foreign        
India     163  
Total   $ 338  
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES

The tax effects of temporary differences that give rise to deferred tax assets and liabilities are presented below:

 

    2025     2024  
    December 31,  
    2025     2024  
Deferred Tax Assets:                
Net Operating Loss Carryforwards - Federal   $ 81,341     $ 71,339  
Net Operating Loss Carryforwards - States     13,679       12,191  
Net Operating Loss Carryforwards - UK     8,497       6,560  
Net Operating Loss Carryforwards - Belgium     12,149       10,523  
Tax Credits     716       686  
Stock-Based Compensation     1,135       713  
Accruals     2,391       944  
Deferred Revenue     2,002       2,299  
Allowance for Doubtful Accounts     2,174       1,536  
Capitalized Sec. 174 R&E     2,976       2,147  
ROU Liability     1,401       1,944  
Other     2,061      

1,934

  
                 
Deferred tax assets, gross     130,522       112,816  
                 
Deferred Tax Liabilities:                
Intangible Assets     (1,742 )     (2,197 )
Depreciable Assets     (6,304 )     (3,613 )
Unrealized Gain/Loss     72       (175 )
ROU Asset     (1,100 )     (1,685 )
Other     (222 )     (531 )
Deferred tax liabilities, gross     (9,296 )     (8,201 )
                 
Net Deferred Tax Assets     121,226       104,615  
Valuation Allowance     (121,200 )     (104,589 )
Deferred Tax Assets, Net of Valuation Allowance     26       26  
                 
Change in Valuation Allowance   $ 16,611     $ 15,858  
SUMMARY OF NOL CARRYFORWARDS

Expiration Date   State NOL  
2031   $ 265  
2032     582  
2033     1,219  
2034     2,042  
2035 and after     152,261  
Indefinite     96,872  
Total   $ 253,241