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

Income Taxes (Tables)

v3.25.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Expense Benefit

The following table presents the income (loss) before income taxes for domestic and foreign operations, and the components of the provision (benefit) for income taxes for the years ended December 31:

 

    2024     2023  
Domestic loss   $ (34,058 )   $ (425 )
Foreign subsidiaries income     636       709  
Income (loss) before income taxes   $ (33,422 )   $ 284  

 

 

 

    2024     2023  
Current income tax expense:                
Federal   $ 1     $ 2  
State     12       56  
Foreign     223       250  
Total Current     236       308  
                 
Deferred income tax expense (benefit):                
Federal     —       —  
State     —       —  
Foreign     (10 )     66  
Total Deferred     (10 )     66  
Total provision for income taxes   $ 226     $ 374  
Schedule of Effective Income Tax

The Company’s effective tax rate differs from the federal statutory rate due to the following for the years ended December 31:

 

    2024     2023  
Statutory federal income tax rate     21.00 %     21.00 %
State income taxes, net of federal tax benefits     0.41 %     23.20 %
Stock compensation     -0.66 %     84.92 %
Foreign rate differential     -0.26 %     58.55 %
GILTI Inclusion     -0.37 %     26.15 %
Non-deductible expenses     -0.06 %     1.02 %
Valuation allowance     -20.74 %     -83.07 %
Effective tax rate     -0.68 %     131.77 %
Schedule of Components of the Company’s Deferred Tax Assets and Liabilities

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table presents the significant components of the Company’s deferred tax assets and liabilities at December 31:

 

    2024     2023  
Gross deferred tax assets:                
Net operating loss carryforward   $ 25,379     $ 18,887  
Section 174 capitalized costs     3,443       1,873  
Tax credits     102       100  
Accruals and reserves     2,928       1,927  
Property and equipment     —     21  
ASC 842 operating lease liability     —       12  
Alternative minimum tax credits     21       21  
Total gross deferred tax assets     31,873       22,841  
Less: valuation allowance     (30,271 )     (22,774 )
Total deferred tax assets net of valuation allowance     1,602       67  
Deferred tax liabilities:                
Accruals and reserves     (1,440 )     —  
Property and equipment     (97 )     —  
ASC 842 right of use asset     —       (12 )
Net deferred tax assets   $ 65     $ 55  
Schedule of Cumulative Foreign Earnings

Estimate of cumulative foreign earnings is as follows as of December 31:

 

    2024     2023  
China   $ 6,694     $ 5,471  
India     5,309       5,102  
Total   $ 12,003     $ 10,573  
Summary of Operating Loss Carryforwards

The Company had net operating loss carryovers as follows as of December 31:

 

    2024     2023  
Federal NOL   $ 118,497     $ 88,066  
Domestic Tax Authority   $ 112,247     $ 88,066  
State NOL   $ 7,875     $ 7,086  
State and Local Jurisdiction   $ 7,875     $ 7,086  
Summary of Tax Credit Carryforwards

The Company had research and development (“R&D”) credit carryforwards as follows as of December 31:

 

    2024     2023  
Federal R&D credits   $ —     $ —  
Internal Revenue Service (IRS)   $ —     $ —  
California R&D credits   $ 129     $ 127  
California Franchise Tax Board   $ 129     $ 127  
Schedule of Unrecognized Tax Benefits

The following table summarizes the activity related to unrecognized tax benefits as follows as of December 31:

 

    2024     2023  
Unrecognized benefit-beginning of period   $ 1,274     $ 1,273  
Gross increases-prior period tax positions     153       1  
Gross (decreases)-current period tax positions     46       —  
Unrecognized benefit-end of period   $ 1,473     $ 1,274