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

INCOME TAXES (Tables)

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

SCHEDULE OF INCOME (LOSS) BEFORE INCOME TAX (BENEFIT) EXPENSE

The components of loss before income tax expense by jurisdiction for continuing operations for the years ended December 31, consisted of the following (in thousands):

	2025			2024
United States	$	(10,586	)	$	(15,119	)
Canada		(72	)		(75	)
United Kingdom		(7	)		60
Total loss before tax expense	$	(10,665	)	$	(15,134	)

SCHEDULE OF INCOME TAX PAID (NET OF REFUNDS)

The amount of income taxes paid (net of refunds) for continuing operations for the years ended December 31, consisted of the following (in thousands):

	2025		2024
Federal	$	—	$	50
State		—		3
Foreign		—		—
Total income tax expense	$	—	$	53

SCHEDULE OF COMPONENTS OF INCOME TAX (BENEFIT) EXPENSE

The components of current and deferred federal, state and foreign income tax (benefit) expense for continuing operations for the years ended December 31, consisted of the following (in thousands):

	2025		2024
Federal income benefit - current	$	—	$	(13	)
Federal income tax expense - deferred		—		3,897
State income tax expense - current		—		—
State income tax expense - deferred		—		551
Foreign income tax expense - current		—		—
Foreign income tax expense (benefit) - deferred		—		—
Total income tax expense	$	—	$	4,435

SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION

The Company’s U.S. federal statutory rate is 21%. The following table reconciles the Company’s U.S federal statutory rate of 21% to its effective tax rate from continuing operations for the years ended December 31, as follows (in thousands except for percentages):

	(In thousands) Amount				Percentage of Pretax Income			(In thousands) Amount				Percentage of Pretax Income
	Year Ended							Year Ended
	December 31, 2025							December 31, 2024
	(In thousands) Amount				Percentage of Pretax Income			(In thousands) Amount				Percentage of Pretax Income
U.S. federal statutory tax rate	$	(2,240	)			21.0	%	$	(3,178	)			21.0	%
State income taxes, net of federal effect		—		(1)		0.0	%		551		(2)		-3.7	%
Foreign tax effects		16				-0.1	%		3				0.0	%
Tax credits: research and development tax credit		(618	)			5.8	%		(148	)			1.0	%
Increase in valuation allowance		2,577				-24.2	%		7,026				-46.4	%
Nontaxable or nondeductible items		131				-1.2	%		188				-1.2	%
Changes in unrecognized tax benefits		124				-1.2	%		30				-0.2	%
Other Adjustments		10				-0.1	%		(37	)			0.2	%
Effective tax rate	$	—				0.0	%	$	4,435				-29.3	%

⁽¹⁾	The Company has not recorded any state tax expense or benefit for 2025. Based on the Company’s state filing profile, California and Tennessee would contribute the majority (greater than 50%) of the tax effect in this category in 2025.
⁽²⁾	State taxes in Tennessee and New Jersey made up the majority (greater than 50%) of the tax effect in this category for 2024.

SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES

The table below reflects components of the Company’s deferred tax asset balances for the years ended December 31, as follows: (in thousands):

Deferred tax assets:	2025			2024
Net operating losses	$	16,842		$	13,502
Environmental and closure reserves		3,060			2,306
Lease liability		365			422
Capital loss carryforward		757			753
Accrued expenses		1,256			1,189
R&D cost capitalization		1,136			1,115
Tax credits		812			318
Deferred tax liabilities:
Depreciation and amortization		(3,670	)		(2,985	)
Indefinite lived intangible assets		(1,980	)		(1,906	)
Right-of-use lease asset		(348	)		(404	)
Prepaid expenses		(34	)		(27	)
Deferred tax assets, gross		18,196			14,283
Valuation allowance		(18,196	)		(14,283	)
Net deferred income tax asset	$	—		$	—

SCHEDULE OF RECOGNIZED TAX EXPENSES

The Company accounts for uncertainties in income tax pursuant to ASC 740. A reconciliation of the beginning and ending amount of our unrecognized tax expense is summarized as follows (in thousands):

SCHEDULE OF RECOGNIZED TAX EXPENSES

	2025		2024
Balances at beginning of year	$	111	$	81
Addition related to R&D tax credit		124		30
Balances at end of the year	$	235	$	111