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 Loss from Operations Before Benefit for Income Taxes
The Company’s loss from operations before benefit for income taxes for the years ended December 31, 2025 and 2024 consisted of the following:

For the Year Ended December 31,
(in thousands) 2025 2024
United States $ (55,441) $ (108,848)
Foreign (9,114) (43,165)
Total loss before income taxes $ (64,555) $ (152,013)
Schedule of Components of the Benefit from Income Taxes
The components of the provision (benefit) from income taxes consisted of the following:
For the Year Ended December 31,
(in thousands) 2025 2024
Current:
Federal $ 905  $ 3,488 
State 379  402 
Foreign (96) 282 
Total current provision $ 1,188  $ 4,172 
Deferred:
Federal (3,750) (5,779)
State 505  (902)
Foreign 478  (3,428)
Total deferred benefit (2,767) (10,109)
Total income tax benefit $ (1,579) $ (5,937)
Schedule of Reconciliation Between Income Taxes Computed at the U.S. Statutory Income Tax Rate
The reconciliation between income taxes computed at the U.S. statutory income tax rate to the Company’s benefit from income taxes for the years ended December 31, 2025 and 2024 is set forth in the table below as follows:

For the Year Ended December 31,
2025 2024
(in thousands) $ % $ %
U.S. Federal statutory tax rate $ (13,556) 21.0  % $ (31,923) 21.0  %
State and local income taxes, net of federal income tax effects (1)
319  (0.5) % (360) 0.2  %
Foreign tax effects
Switzerland
Statutory tax rate difference between Switzerland and United States 1,025  (1.6) % 992  (0.7) %
Net operating loss adjustment (324) 0.5  % (1,832) 1.2  %
Changes in valuation allowances 1,667  (2.6) % 131  (0.1) %
Other —  —  % (11) 0.0  %
Netherlands
Goodwill impairment —  —  % 2,195  (1.4) %
Other (19) —  % 905  (0.6) %
Other foreign jurisdictions (462) 0.7  % 3,105  (2.0) %
Effect of cross-border tax laws
Income or loss from a foreign disregarded entity (2,391) 3.7  % (2,047) 1.3  %
Tax credits (173) 0.3  % (188) 0.1  %
Changes in valuation allowances 4,083  (6.3) % 5,960  (3.9) %
Nontaxable or nondeductible items
Shortfall on share-based payment awards 422  (0.7) % 1,640  (1.1) %
Goodwill impairment —  —  % 9,880  (6.5) %
Preferred stock dividend 5,063  (7.8) % 4,466  (2.9) %
Other 573  (0.9) % (367) 0.2  %
Changes in unrecognized tax benefits 2,027  (3.1) % 1,591  (1.0) %
Other adjustments 167  (0.3) % (74) 0.1  %
Effective tax rate $ (1,579) 2.4  % $ (5,937) 3.9  %
(1) During the year ended December 31, 2025, state taxes in California and Pennsylvania made up the majority of the tax effect in this category. During the year ended December 31, 2024, state taxes in California, Illinois and New York made up the majority of the tax effect in this category.
Schedule of Deferred Income Taxes
Significant components of the Company’s deferred tax assets (liabilities) as of December 31, 2025 and 2024 are set forth as follows:

December 31,
(in thousands) 2025 2024
Deferred tax assets:
Net operating loss carryforward $ 25,350  $ 20,515 
Credit carryforward 1,782  1,329 
Interest expense limitation carryforward 28,759  26,889 
Non-deductible reserves 1,770  2,052 
Accruals and other temporary differences 3,268  2,757 
Stock compensation 367  782 
Capitalized research and development costs 1,111  1,916 
Lease liability 698  2,532 
Property and equipment 1,161  3,264 
Gross deferred tax assets $ 64,266  $ 62,036 
Less: valuation allowance (53,913) (44,178)
Total deferred tax assets (after valuation allowance) $ 10,353  $ 17,858 
Deferred tax liabilities:
Property and equipment (1,090) (1,210)
Intangible assets (3,539) (12,428)
Goodwill (3,510) (2,317)
Change in accounting method —  (153)
Right-of-use operating lease asset (599) (2,208)
Research and development costs (2,502) (3,230)
Total deferred tax liabilities $ (11,240) $ (21,546)
Net deferred tax liabilities $ (887) $ (3,688)
Schedule of Gross Unrecognized Tax Benefits
The following table sets forth a reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties, included in accrued liabilities and other noncurrent liabilities in the Company’s consolidated balance sheets:

(in thousands) December 31, 2025 December 31, 2024
Unrecognized tax benefits as of the beginning of the year $ 9,459  $ 8,766 
Additions for tax positions of prior years 647  693 
Unrecognized tax benefits as of the end of the year $ 10,106  $ 9,459 
Schedule of Income Tax Payments Made And Income Tax Refunds
The following table sets forth a summary of income tax payments made and income tax refunds receiving during the years ended December 31, 2025 and 2024:

For the Year Ended December 31,
2025 2024
(in thousands) Payment (Refund) Amount Payment (Refund) Amount
U.S. Federal $ 2,812  $ 1,242 
Pennsylvania 110  123 
Other US States 72  379 
Belgium (269) — 
Netherlands (160) 189 
Mexico 195  — 
Other Foreign 161  171 
Total $ 2,921  $ 2,104