v3.26.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Provision for Income Taxes

The provision for income taxes consists of the following (in thousand):

 

   December 31,   December 31, 
   2025   2024 
Current provision:          
Federal   -    - 
State   

16

    - 
Foreign   (21)   (42)
Total current provision   (4)   42 
Deferred:          
Federal        - 
State        - 
Foreign   1    11 
Total deferred provision   1    11 
Total provision for income taxes       (3)  $(31)
Schedule of Deferred Income Taxes

Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below (in thousands):

 

   2025   2024 
Deferred tax assets:          
U.S. federal and state net operating loss carry forwards   

4,961

   3,608 
Research and development Tax Credits   60      
Allowance for credit losses   34    232 
Research and development   

1,148

    1,305 
Amortization        - 
Accrued expenses and other current liabilities   

1,132

    740 
Stock-based compensation   74    273 
Operating lease liability   105    119 
Total deferred tax assets   7,514    6,277 
Deferred tax liabilities:          
Amortization   (60)   (54)
Property and equipment, net    (14)   (13)
Uncertain Tax Positions        
Operating lease right-of-use assets   (93)   (109)
Total deferred tax liabilities   (167)   (176)
Valuation allowance   (7,336)   (6,091)
Net deferred tax assets after valuation allowance   11    10 
Schedule of Income Tax Rate Reconciliation
   2025 
   Amount   Percentage 
U.S. federal statutory tax rate   (195)   21.00%
Foreign tax effects          
Nepal          
Statutory tax rate difference between Nepal and United states   (4)   0.38%
Other   14    (1.51)%
Canada          
Statutory tax rate difference between Canada and United States   44    (4.73)%
Changes in valuation allowances   110    (11.83)%
Tax credits   (19)   2.01%
Changes in valuation allowances   824    (88.96%)
Nontaxable or nondeductible items          
Change in fair value   (1,147)   123.83%
Stock-based compensation   (26)   2.81%
Loss on extinguishment of debt   82    (8.86)%
162(m) Limitation   88    (9.48)%
Other   58    (6.23)%
Changes in unrecognized tax benefits   4    (0.41)%
Other adjustments          
Stock-based compensation–related deferred tax asset adjustments   139    (15.04)%
Prior year true ups   31    (3.31)%
Provision for Income tax   3    (0.35)%

 

The reconciliation of taxes at the federal statutory rate to the provision for (benefit from) income taxes for the year ended December 31, 2024 in accordance with the guidance prior to the adoption of ASU 2023-09 was as follows (in thousands):

 

   2024 
   Amount   Percentage 
Loss before income taxes   (15,352)     
Federal tax at statutory rate   (3,224)   21.00%
Foreign rate differential   20    (0.13)%
State taxes, net of federal benefit   (357)   2.33%
Permanent differences   132    (0.86)%
Change in fair value   1,282    (8.35)%

Stock based compensation

   450    (2,93)
Tax Credits   (62)   0.40%
Others   (43)   0.28%
Change in valuation allowance   1,834    (11.94)
Provision for Income Tax   31    (0.20)
Schedule of Unrecognized Tax Benefits

   December 31,   December 31, 
   2025   2024 
Beginning Balance  $       22   $      22 
Change related to prior year provisions   (6)     
Change related to current year provisions   5      
Ending balance  $21   $22