Income Tax Provision (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
|---|
| Income Tax Provision [Abstract] |
|
| Schedule of Loss Before Income Taxes |
The loss before income
taxes was allocated between domestic and foreign sources as follows for the years ended December 31, 2025 and 2024:
| |
|
December
31, 2025 |
|
|
December
31, 2024 |
|
| Domestic |
|
$ |
(627 |
) |
|
$ |
(4,135 |
) |
| Foreign |
|
|
— |
|
|
|
— |
|
| Loss before income taxes |
|
$ |
(627 |
) |
|
$ |
(4,135 |
) |
|
| Schedule of Income Tax Provision |
The
income tax provision for the years ended December 31, 2025 and 2024 was $120 and $5, respectively, and consisted of the following:
| |
|
December
31, 2025 |
|
|
December
31, 2024 |
|
| Current provision |
|
|
|
|
|
|
|
|
| Federal |
|
$ |
49 |
|
|
$ |
— |
|
| State |
|
|
71 |
|
|
|
5 |
|
| Total current provision |
|
|
120 |
|
|
|
5 |
|
| |
|
|
|
|
|
|
|
|
| Deferred provision |
|
|
|
|
|
|
|
|
| Federal |
|
|
— |
|
|
|
— |
|
| State |
|
|
— |
|
|
|
— |
|
| Total deferred provision |
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
| Provision for income taxes |
|
$ |
120 |
|
|
$ |
5 |
|
|
| Schedule of Reconciliation Federal Statutory Income Tax Rate |
A reconciliation of the U.S. federal statutory income tax rate to our effective
tax rate pursuant to the disclosure requirements of ASU 2023-09 for the year ended December 31, 2025 is as follows:
| |
|
For the Year
Ended |
|
| |
|
December
31, 2025 |
|
| U.S. statutory rate |
|
$ |
(132 |
) |
|
|
21.00 |
% |
| State and local income taxes1,
net of federal income tax effect |
|
|
54 |
|
|
|
(8.57 |
)% |
| Change in valuation allowance |
|
|
(279 |
) |
|
|
44.44 |
% |
| Return to provision: |
|
|
|
|
|
|
|
|
| Change in pre-tax income |
|
|
56 |
|
|
|
(8.97 |
)% |
| Other return to provision |
|
|
1 |
|
|
|
(0.09 |
)% |
| Other deferred adjustments: |
|
|
|
|
|
|
|
|
| Fixed assets |
|
|
(71 |
) |
|
|
11.26 |
% |
| Intangibles |
|
|
(79 |
) |
|
|
12.63 |
% |
| 481(a) adjustment |
|
|
558 |
|
|
|
(88.91 |
)% |
| Net operating loss |
|
|
(682 |
) |
|
|
108.73 |
% |
| Stock compensation |
|
|
90 |
|
|
|
(14.35 |
)% |
| Section 163(j) |
|
|
29 |
|
|
|
(4.57 |
)% |
| Bad debt expense |
|
|
(67 |
) |
|
|
10.62 |
% |
| UNICAP |
|
|
(50 |
) |
|
|
7.99 |
% |
| Other deferred adjustments |
|
|
(7 |
) |
|
|
1.01 |
% |
| Uncertain tax position
adjustment |
|
|
660 |
|
|
|
(105.15 |
)% |
| Non-taxable/non-deductible items: |
|
|
|
|
|
|
|
|
| Meals
and entertainment expenses |
|
|
39 |
|
|
|
(6.23 |
)% |
| Effective
tax rate |
|
$ |
120 |
|
|
|
(19.16 |
)% |
|
1 |
Massachusetts
and New York account for greater than 50% of the tax effect in this category. |
The
reconciliation of the U.S. statutory rate of 21.00% to the Company’s effective tax rate for the year ended December 31, 2024 in
accordance with the guidance prior to the adoption of ASU 2023-09 is summarized as follows:
| |
|
December
31,
2024 |
|
| U.S. Statutory rate |
|
|
21.00 |
% |
| State taxes, net of federal |
|
|
5.08 |
% |
| Change in valuation allowance |
|
|
(24.77 |
)% |
| Other permanent differences |
|
|
(1.43 |
)% |
| Effective
tax rate |
|
|
(0.12 |
)% |
|
| Schedule of Deferred Tax Assets and Liabilities |
The
table below presents the effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities
as of December 31, 2025 and 2024:
| |
|
December
31,
2025 |
|
|
December
31,
2024 |
|
| Deferred tax assets: |
|
|
|
|
|
|
| Net operating
loss carryforwards |
|
$ |
1,515 |
|
|
$ |
1,051 |
|
| Charitable contributions |
|
|
53 |
|
|
|
29 |
|
| Lease liability |
|
|
600 |
|
|
|
208 |
|
| Stock compensation |
|
|
114 |
|
|
|
219 |
|
| Compensation expense |
|
|
26 |
|
|
|
26 |
|
| Unrealized gain/loss |
|
|
— |
|
|
|
3 |
|
| Allowance for credit
losses |
|
|
360 |
|
|
|
167 |
|
| UNICAP |
|
|
67 |
|
|
|
30 |
|
| Amortization |
|
|
134 |
|
|
|
755 |
|
| Total gross deferred tax assets |
|
|
2,869 |
|
|
|
2,488 |
|
| Less:
Valuation allowance |
|
|
(1,833 |
) |
|
|
(2,234 |
) |
| Net deferred tax assets |
|
|
1,036 |
|
|
|
254 |
|
| |
|
|
|
|
|
|
|
|
| Deferred tax liabilities: |
|
|
|
|
|
|
|
|
| Lease liability |
|
|
(534 |
) |
|
|
(208 |
) |
| Depreciation |
|
|
(114 |
) |
|
|
(46 |
) |
| Unrealized gains |
|
|
(41 |
) |
|
|
— |
|
| 481a adjustment |
|
|
(347 |
) |
|
|
— |
|
| Total deferred tax liabilities |
|
|
(1,036 |
) |
|
|
(254 |
) |
| |
|
|
|
|
|
|
|
|
| Total deferred tax assets (liabilities) |
|
$ |
— |
|
|
$ |
— |
|
|
| Schedule of Cash Paid for Income Taxes |
Cash
paid for income taxes, net of refunds received, by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the year ended
December 31, 2025 is as follows:
| |
|
December
31,
2025 |
|
| Federal |
|
$ |
34 |
|
| State |
|
|
|
|
| Massachusetts |
|
|
69 |
|
| New York |
|
|
7 |
|
| Texas |
|
|
27 |
|
| Other states |
|
|
3 |
|
| Cash paid for income taxes, net of refunds
received |
|
$ |
140 |
|
|
| Schedule of Uncertain Tax Positions |
The Company did not record interest expense
for 2025 as the amount was nominal.
| Unrecognized tax benefits as
of December 31, 2023 |
|
$ |
2,448 |
|
| Gross increase in unrecognized
tax benefits for prior year |
|
|
693 |
|
| Decreases
due to settlements |
|
|
— |
|
| Unrecognized tax
benefits as of December 31, 2024 |
|
$ |
3,141 |
|
| Gross decrease in unrecognized
tax benefits for prior year |
|
|
(3,141 |
) |
| Decreases
due to settlements |
|
|
— |
|
| Unrecognized tax benefits
as of December 31, 2025 |
|
$ |
— |
|
|