0001999371-26-007345 | 10-K | XBRL Viewer

Related Party Notes and Lines of Credit

12 Months Ended

Dec. 31, 2025

(3) Related Party Notes and Lines of Credit

Notes and lines of credit consist of the following:


		As of December 31, 2025				As of December 31, 2024
	Rate at December 31, 2025	Total Borrowing Capacity		Outstanding Borrowed Balance		Total Borrowing Capacity		Outstanding Borrowed Balance
Libertyville Bank & Trust ⁽¹⁾	7.75%	$	30	$	—	$	30	$	—
Libertyville Bank & Trust ⁽²⁾	7.75%		500		—		500		—
Beachcorp, LLC ⁽³⁾	7.50%		6,236		4,767		5,604		—
Beachcorp, LLC ⁽⁴⁾	7.50%		10,000		9,500		5,200		4,000
Strandler, LLC ⁽⁵⁾	7.50%		1,000		1,000		1,000		1,000

Since July 2014, we have maintained a bank-issued letter of credit for up to $30 in borrowings, with interest at the prime rate plus 1%, to support our obligations under our Romeoville, Illinois facility lease agreement. No borrowings have been incurred under this promissory note. It is our intention to renew this note annually. Because there were no amounts outstanding on the note at any time during 2025 or 2024, we have recorded no related liability on our condensed consolidated balance sheet.

On December 21, 2021, the existing credit agreement with Libertyville was converted for use to support our obligations under our newly leased manufacturing and warehouse space in Bolingbrook, Illinois. Interest on drawn balances will be at the prime rate plus 1%. This credit agreement has a maturity of December 22, 2026. We expect to renew this agreement annually, as the lease requires. This credit agreement is secured by all the unencumbered assets of the Company and has superior collateral rights to those credit facilities with Beachcorp, LLC and Strandler, LLC.

On January 28, 2022, the Company entered into an Amended and Restated Business Loan Agreement (the “A&R Loan Agreement”), with Beachcorp, LLC, and a new promissory note in order to evidence the A/R Revolver facility, including an amendment to expand the limit on the A/R Revolver Facility from $6,000 to $8,000, reduce the interest rate to the prime rate plus 0.75%, and extend the maturity of the A/R Revolver Facility to March 31, 2024. On March 1, 2024, the Company entered into a Second Amendment to the Amended and Restated Business Loan Agreement extending the maturity of the A/R Revolver Facility to October 1, 2025. On May 27, 2025, the Company entered into a Third Amendment to the Amended and Restated Business Loan Agreement to expand the limit on the A/R Revolver Facility from $8,000 to $12,000 and extend its maturity to April 30, 2027.

On January 28, 2022, the Company entered into the A&R Loan Agreement and a new revolving loan agreement (“Inventory Facility”) with Beachcorp, LLC, and a new promissory note in order to evidence the Inventory Facility. The maximum borrowing amount under the Inventory Facility was $4,000, with a borrowing base consisting of up to 50% of the value of qualified inventory of the Company. The interest rate for the Inventory Revolver is at the prime rate plus 0.75%, and it was set to mature on March 31, 2024. On November 13, 2023, the Company entered into a Replacement Promissory Note with Beachcorp, LLC replacing the Inventory Facility promissory note executed on January 28, 2022. The maximum borrowing amount under the replacement Inventory Facility was increased to $5,200, with a borrowing base consisting of up to 55% of the value of qualified inventory of the Company. The interest rate for the replacement Inventory Revolver remains at the prime rate plus 0.75%. On March 1, 2024, the company entered into a Second Amendment to the Business Loan Agreement extending the maturity of the Inventory Revolver Facility to October 1, 2025. On May 27, 2025, the Company entered into a Third Amendment to the Business Loan Agreement to expand the limit on the Inventory Revolver Facility from $5,200 to $10,000 and extend its maturity to April 30, 2027.

On January 28, 2022, the Company entered into an additional Business Loan Agreement (the “New Term Loan Agreement”) with Strandler, LLC, which effectively transferred or assigned the Term Loan to Strandler, LLC from Beachcorp, LLC. Interest on the New Term Loan is at the prime rate plus 0.75%. Strandler, LLC is also an affiliate of Bradford T. Whitmore. On March 1, 2024, the company entered into a Second Amendment to the Business Loan Agreement extending the maturity of the Term Maturity Note to October 1, 2025. On May 27, 2025, the Company entered into a Third Amendment to the Business Loan Agreement extending the maturity of the Term Maturity Note to April 30, 2027.

The Company classifies the line of credit – accounts receivable as current because we are required to pay back the borrowings as cash is received from our customers. The Company’s remaining debt is presented within the condensed consolidated balance sheet as of December 31, 2025, and 2024, in accordance with the maturity dates in the financing agreements.

Beachcorp, LLC and Strandler, LLC are affiliates of Mr. Bradford T. Whitmore, who beneficially owns a majority of the Company’s common stock and is the brother of Ms. R. Janet Whitmore, a director of the Company and the chair of the Company’s board of directors. The A/R Revolver Facility, the Inventory Facility and the New Term Loan are all secured by all the unencumbered assets of the Company and subordinated to the Company’s credit facility with Libertyville Bank & Trust.

Related party interest expense consists of the following:

	Year ended December 31,
	2025		2024

Interest expense, related parties	$	1,123	$	656

Accrued interest consists of the following:

	As of December 31,
	2025		2024

Accrued interest expense, related parties	$	103	$	36

Outstanding balances associated with related parties are as follows:

	As of December 31,
	2025		2024

Beachcorp, LLC	$	14,267	$	4,000
Strandler, LLC		1,000		1,000

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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+ Details

Significant Customers

12 Months Ended

Dec. 31, 2025

Risks and Uncertainties [Abstract]

Significant Customers

(12) Significant Customers

We had three significant customers for the year ended December 31, 2025.

Revenues from these three customers, as a percentage of total Company revenue, was approximately:

		For the years ended
		December 31,
Customer #	Product Category	2025			2024
1	Consumer Products		29	%		32	%
2	Consumer Products		16	%		—	%
3	Personal Care Ingredients		10	%		13	%
	Total		55	%		45	%

Contractual accounts receivable balances for these three customers was approximately:

		As of December 31,
Customer #	Product Category	2025		2024
1	Consumer Products	$	3,695	$	2,366
2	Consumer Products		575		—
3	Personal Care Ingredients		389		160
	Total	$	4,659	$	2,526

We currently have exclusive supply agreements with BASF Corporation (“BASF”), our third largest customer, that have contingencies outlined which could potentially result in the sale of production equipment from the Company to the customer intended to provide capacity sufficient to meet the customer’s production needs. This outcome may occur if we fail to meet certain performance requirements. In the event of an equipment sale, upon incurring a triggering event, the equipment would be sold to the customer at either 115% of the equipment’s net book value or the greater of 30% of the original book value of such equipment, and any associated upgrades to it, or 115% of the equipment’s net book value, depending on the equipment and related products.

If a triggering event were to occur and BASF elected to proceed with the equipment sale mentioned above, we would lose significant revenue and difficult to replace in the near term.

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

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+ Details

Business Segmentation and Geographical Distribution (Tables)

12 Months Ended

Dec. 31, 2025

Segment Reporting [Abstract]

The Chief Operating Decision Maker uses gross profit and net income to evaluate Company performance and in what way to allocate resources. Significant segment expenses, which are the same as the entity as a whole, are as follows:


	As of December 31,
	2025			2024
Total revenue	$	62,064		$	52,347

Employee costs		14,905			12,933
Contractors and professional services		11,566			7,815
Materials and supplies		22,042			15,559
Depreciation and amortization		897			928
Interest expense		1,126			670
Other income		(1,416	)		(2	)
Tax expense		151			318
Facilities		3,905			3,413
Shipping		1,059			1,193
Testing		418			917
IT services		1,471			1,091
Insurance		862			785
Manufacturing other expense		1,064			992
Selling, general and administrative other expense		2,224			1,500
Total Expense		60,274			48,112

Net Income	$	1,790		$	4,235

The revenues for 2025 and 2024 by category are as follows:

Our operations comprise a single business segment and all of our long-lived assets are located within the United States. We categorize our revenue stream into three main product categories, personal care ingredients, advanced materials and consumer products. The revenues for 2025 and 2024 by category are as follows:

	For the years ended December 31
Product Category	2025		2024
Consumer Products	$	54,868	$	44,373
Personal Care Ingredients		6,339		6,827
Advanced Materials		857		1,147
Total Sales	$	62,064	$	52,347

Contractual accounts receivable balances for these three customers was approximately: (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Total	$ 4,659	$ 2,526
Customer One [Member]
Total	3,695	2,366
Customer Two [Member]
Total	575
Customer Three [Member]
Total	$ 389	$ 160

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2025

Accounting Policies [Abstract]

Use of Estimates and Risks and Uncertainties

Use of Estimates and Risks and Uncertainties

The preparation of financial statements requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Certain assumptions are also necessary to assess the impact of risks and uncertainties on the financial statements, such as cash flow projections, availability of capital if needed to support the ongoing operations of the business, and our expected compliance with contractual commitments. These risks and uncertainties are further discussed in Note 12. Any changes in these assumptions or business plans could have a material impact on the financial statements.

Cash

Cash

The Cash balance on December 31, 2025 consists of funds borrowed from our Revolving Line of Credit, which is facilitated by Beachcorp, LLC. Our ability to access cash from our credit facilities depends on carrying an Accounts Receivable or Inventory balance greater than the outstanding loan balances in the Revolving Lines of Credit. As part of the agreement, we are required to have a bank account in place to act as a depository account for our customers. This account is referred to as the Control Account. Furthermore, there is an Account Control Agreement in place which provides Beachcorp, LLC the ability to exercise control over the account via approval of requested transfers. According to our agreements with Beachcorp, LLC, Solésence is to be the party initiating any transfers, whether to Solésence or to Beachcorp, LLC, and approval to access any monies within this account can only be withheld by Beachcorp, LLC if the borrowing base falls below the Company’s qualified receivables, or if we are in arrears with respect to interest payments due Beachcorp, LLC. The failure of Solésence to remedy the previously mentioned conditions could lead to Beachcorp, LLC gaining the right, through a “springing” feature administered by Libertyville Bank and Trust, a Wintrust Community Bank (“Libertyville”), to transfer funds to itself without direct approval from Solésence. Cash is held at a federally insured institution, but our cash balances at times exceed insured limits. The Company has not experienced any losses related to these statutory limits.

Trade Accounts Receivable, Net

Trade Accounts Receivable, Net

Trade accounts receivable are carried at original invoice amount less an estimate made for future credit losses based on a review of all outstanding amounts on a monthly basis, and written off when deemed uncollectible We determine the allowance for credit losses by identifying troubled accounts and by using historical experience applied to an aging of accounts, as well as expected losses based on the current and anticipated macroeconomic environment. Recoveries of trade accounts receivable previously written off are recorded when received. Our typical credit terms are between thirty and sixty days from shipment and invoicing.

	2025			2024
Balance, beginning	$	786		$	225
Current period provisions		836			564
Write offs		(816	)		(3	)
Balance, ending	$	806		$	786

Inventories, Net

Inventories, Net

Inventories are stated at the lower of cost, maintained on an average cost basis, or net realizable value. We have recorded allowances to reduce inventory relating to excess quantities of certain materials. Write-downs of inventories establish a new cost basis, which is not increased for future increases in market value of inventories or changes in estimated excess quantities.

Equipment and Leasehold Improvements

Equipment and Leasehold Improvements

Equipment is stated at cost and is being depreciated over its estimated useful life (3-20 years) using the straight-line method. Leasehold improvements are stated at cost and are being amortized using the straight-line method over the shorter of the useful life of the asset or the term of the lease (3-7 years). Depreciation expense for leased assets is included with depreciation expense for owned assets. From time to time we have self-constructed assets. These assets are stated at cost plus the capitalization of labor and are depreciated over an estimated useful life (7-10 years) using the straight-line method.

Long Lived Assets

Long Lived Assets

We review long-lived assets for impairment whenever events or changes in circumstances indicate that the asset’s carrying amount may not be recoverable. We conduct long-lived asset impairment analyses in accordance with ASC 360-10-15, Impairment or Disposal of Long-Lived Assets. ASC 360-10-15 requires us to group assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and evaluate the asset group against the sum of the undiscounted future cash flows. If the undiscounted cash flows do not indicate the carrying amount of the asset is recoverable, an impairment charge is measured as the amount by which the carrying amount of the asset group exceeds its fair value based on discounted cash flow analysis or appraisals. Based upon our analysis, there were no impairment charges recognized in either period presented.

Deferred Revenue

Deferred Revenue

The Company records a contract liability for development projects due to the contractual billing of these projects not always aligning with revenue recognition. It the Company’s policy to frequently require deposits relating to the production of our consumer products. Of the total $930 and $5,571 in deferred revenue reported in 2025 and 2024 respectively, all related to prepayments received from certain customers per Company policy.

Financial Instruments

Financial Instruments

We follow ASC Topic 820, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment.

Our financial instruments include cash, accounts receivable, accounts payable and accrued expenses, along with any short-term and long-term borrowings as described in Note 3. The carrying values of cash and cash equivalents, accounts receivable, and accounts payable and accrued expenses are reasonable estimates of their fair value due to the short-term nature. The fair value of short-term and long-term debt approximates carrying value based on comparison of terms to similar debt offering in the marketplace.

There were no financial instruments adjusted to fair value on December 31, 2025 and 2024.

Product Revenue

Product Revenue

Revenues are recognized when control of the promised goods is transferred to customers, in an amount that reflects the consideration we expect to receive in exchange for those goods. When our ingredients and finished products are shipped, with control being transferred at the shipping point, is the point in time at which we recognize the related revenue.

We generally expense sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within selling, general and administrative expenses. Customers’ deposits, deferred revenue and other receipts are deferred and recognized when the revenue is realized and earned. Cash payments to customers are classified as reductions of revenue in our statements of operations. For select customers the Company may pay volume rebates which are variable in nature due the amount the select customer will take. In 2025 one customer earned a volume rebate of $95,000. In 2024 one customer earned a volume rebate of $35,000.

As part of the sales process, it is common for the Company to receive customer deposits. These deposits are typically held for less than a year and do not result in a financing component to the sales. The customer deposits are recognized as revenue when the Company ships the finished goods to the customer.

The Company will for some customers arrange for the shipping of the finished goods. Revenues and costs associated with the shipment of the finished goods are recorded separately within product revenue and cost of revenue, respectively, on the consolidation statement of operations. With regard to revenue recognition, shipping activities that occur prior to the customers’ obtaining control of the goods are not a promised service to the customer, but rather activities to fulfill the Company’s promise to transfer the goods. As such, these activities are not deemed a performance obligation requiring allocation of the transaction price. Similarly, shipping activities that occur after the customers’ obtaining control of the goods are, as a matter of policy, also not a promised service to the customer, but rather an activity to fulfill the Company’s promise to transfer the good.

Contract balances for the years ended December 31, 2025, 2024, and 2023 are as follows:

	Accounts Receivable		Contract Liabilities
2023	$	3,692		2,353
2024		5,655		5,571
2025		7,642		930

Revenue recognized in the reporting period that was included in the contract liability balance at the beginning of the period was $5,059 and $2,074 for the years ended December 31, 2025, and 2024, respectively.

Other Revenue

Other Revenue

Other revenue may include revenue from technology license fees and paid development projects. Technology license fees and paid development projects are recognized over time when the obligations under the agreed upon contractual arrangements are performed on our part. Revenue recognized over time was $270 and $457 for the years ended December 31, 2025 and 2024, respectively.

Research and Development Expenses

Research and Development Expenses

Research and development expenses are recognized as expense when incurred.

Income Taxes

Income Taxes

We account for income taxes using the asset-and-liability approach. As such, 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. Deferred tax assets and liabilities are calculated using the enacted tax rates and laws that are expected to be in effect when the anticipated reversal of these differences is scheduled to occur. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some or all of the deferred tax assets will not be realized.

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured, as described above, is reflected as a liability for uncertain tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination.

We have not recorded a reserve for any tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. We file tax returns in all appropriate jurisdictions, which includes a federal tax return and Illinois state tax return. When and if applicable, potential interest and penalty costs are accrued as incurred, with expenses recognized in selling, general and administrative expenses in the statements of operations. As of December 31, 2025, and 2024, we had no liability for unrecognized tax benefits.

Earnings Per Share

Earnings Per Share

Included in the computation of diluted earnings per share for the year ended December 31, 2025, was a total of 2,235,563 in potential shares of common stock. Included in the computation of diluted earnings per share for the year ended December 31, 2024, was a total of 2,678,356 in potential shares of common stock.

Earnings applicable to common stock and common stock shares used in the calculation of basic and diluted earnings per share are as follows:


	Years Ended December 31,
	2025		2024
Numerator: (in Thousands)
Net income	$	1,790	$	4,235

Denominator:
Weighted average number of basic common shares outstanding		70,344,152		62,350,459
Weighted average additional shares assuming conversion of in-the-money stock options to common shares		2,235,563		2,678,356
Weighted average number of diluted common shares outstanding		72,579,715		65,028,815

Basic earnings per common share:
Net income per share – basic	$	0.03	$	0.07
Diluted earnings per common share:
Net income per share – diluted	$	0.02	$	0.07

Recently Adopted Pronouncements

Recently Adopted Pronouncements

In December 2023 the FASB issued ASU 2023-09 “Improvements to Income Tax Disclosures”, which the Company adopted in 2025. The amendments in this Update address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This Update also includes certain other amendments to improve the effectiveness of income tax disclosures (see Note 8).

Recently Issued Pronouncements

Recently Issued Pronouncements

In November 2024 the FASB issued ASU 2024-03 “Disaggregation of Income Statement Expenses”, the amendments in this Update improve the disclosures about a public business entity’s expenses and address requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions (such as cost of sales, SG&A, and research and development). The amendments in this Update are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is currently evaluating the impact of the adoption of this standard on the consolidated financial statements.

In July 2025 the FASB issued ASU 2025-05 “Measurement of Credit Losses for Accounts Receivable and Contract Assets”, which addresses challenges encountered when applying the guidance in Topic 326, Financial Instruments—Credit Losses, to current accounts receivable and current contract assets arising from transactions accounted for under Topic 606, Revenue from Contracts with Customers. The Private Company Council (PCC) initiated this project in response to concerns raised by private company stakeholders. The amendments will be effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. The Company is currently evaluating the impact of the adoption of this standard on the consolidated financial statements.

Risk Assessment and Strategy

12 Months Ended

Dec. 31, 2025

Cybersecurity Risk Management, Strategy, and Governance [Abstract]

Risk Assessment and Strategy

Risk Assessment and Strategy

The Company regularly evaluates cybersecurity risk from computer viruses and more sophisticated and targeted cyber-related attacks such as ransomware, as well as cybersecurity failures resulting from human error and technological errors.

Our overall strategy in combatting known cybersecurity risks includes a variety of individual tactics, including:

●

The use of antivirus software, virtual private networks, email security, as well as other software to prevent and detect data intrusions.

●

The deployment of updates and patches as they are available and maintaining the current versions of major software to reduce the exposure to vulnerabilities.

●

If necessary, the use of third-party security experts if and when an incident is detected.

We are not aware of having experienced any material cybersecurity incidents in 2025. We are not aware of any existent cybersecurity threats that would materially affect, or are reasonably likely to materially affect, our business strategy, results of operations or financial conditions.

Income Taxes (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Operating Loss Carryforwards [Line Items]
Income tax provision	$ 73	$ 227
U.S. federal statutory rate	21.00%	21.00%
Increase (decrease) in valuation allowance	$ 1,000	$ 1,100
Valuation allowance, net operating loss carryforwards and credits	5,400	$ 8,100
Net operating loss carryforwards	$ 36,900
Domestic Tax Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards expiration period start	2026
Operating loss carryforwards expiration period end	2038
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 18,500
Operating loss carryforwards expiration period start	2029
Operating loss carryforwards expiration period end	2039
Expiring 2026 to 2038 [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 30,700
Tax Year 2018 [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 6,200

Insider Trading Policies and Procedures	12 Months Ended
Insider Trading Policies and Procedures	Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]
Insider Trading Policies and Procedures Adopted	true

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Operating activities:
Net income	$ 1,790	$ 4,235
Adjustments to reconcile net income to cash (used in) provided by operating activities:
Depreciation and amortization	897	928
Stock-based compensation	575	725
Changes in assets and liabilities related to operations:
Trade accounts receivable, net	(1,967)	(1,402)
Inventories, net	1,756	(10,236)
Prepaid expenses and other assets	662	(1,721)
Accounts payable	(5,377)	2,399
Deferred revenue	(4,641)	3,218
Accrued expense	(2,022)	3,988
Change in right of use asset and lease liability, net	(240)	(163)
Net cash (used in) provided by operating activities	(8,567)	1,971
Investing activities:
Acquisition of equipment and leasehold improvements	(2,143)	(4,558)
Net cash used in investing activities	(2,143)	(4,558)
Financing activities:
Proceeds from line of credit - inventory, related party	5,500	200
Payments to line of credit - inventory, related party		(1,200)
Net proceeds from line of credit – accounts receivable, related party	4,766
Net payments to line of credit – accounts receivable, related party		(2,810)
Payments to term loans, related party		(2,000)
Proceeds from issuance of mezzanine preferred stock		6,000
Proceeds from issuance of stock and exercise of stock options	323	2,084
Net cash provided by financing activities	10,589	2,274
Decrease in cash	(121)	(313)
Cash at beginning of period	1,409	1,722
Cash at end of period	1,288	1,409
Supplemental cash flow information:
Cash paid for interest	1,022	637
Federal income taxes paid
State income taxes paid	325
Supplemental non-cash investing and financing activities:
Accounts payable incurred for the purchase of equipment and leasehold improvements	382	434
Conversion of mezzanine preferred stock		6,000
Right-of-use asset obtained in exchange for a lease liability	$ 430	$ 1,019

Significant Accounting Policies (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Property, Plant and Equipment [Line Items]
Deferred revenue	$ 930,000	$ 5,571,000
Volume rebate	95,000	35,000
Revenue recognized in the reporting period included in contract liability balance at beginning of period	5,059,000	2,074,000
Revenue	$ 62,064,000	$ 52,347,000
Potential common stock included in computation of diluted earnings per share	2,235,563	2,678,356
Transferred over Time [Member]
Property, Plant and Equipment [Line Items]
Revenue	$ 270,000	$ 457,000
Equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Equipment leasehold improvements and leased assets useful life	3 years
Equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Equipment leasehold improvements and leased assets useful life	20 years
Leasehold Improvements [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Equipment leasehold improvements and leased assets useful life	3 years
Leasehold Improvements [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Equipment leasehold improvements and leased assets useful life	7 years
Other Capitalized Property Plant and Equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Equipment leasehold improvements and leased assets useful life	7 years
Other Capitalized Property Plant and Equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Equipment leasehold improvements and leased assets useful life	10 years

Accrued Expenses and Asset Retirement Obligations (Tables)

12 Months Ended

Dec. 31, 2025

Payables and Accruals [Abstract]

Accrued expenses consist of the following:


	As of December 31,
	2025		2024
Accrued payroll and related expenses	$	809	$	1,597
Accrued accounts payable		292		1,824
Other		1,778		1,428
Total	$	2,879	$	4,849

The Chief Operating Decision Maker uses gross profit and net income to evaluate Company performance and in what way to allocate resources. Significant segment expenses, which are the same as the entity as a whole, are as follows: (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Interim Period, Costs Not Allocable [Line Items]
Total revenue	$ 62,064	$ 52,347
Total Expense	60,274	48,112
Net Income	1,790	4,235
Employee costs [Member]
Interim Period, Costs Not Allocable [Line Items]
Total Expense	14,905	12,933
Contractors and professional services [Member]
Interim Period, Costs Not Allocable [Line Items]
Total Expense	11,566	7,815
Materials and supplies [Member]
Interim Period, Costs Not Allocable [Line Items]
Total Expense	22,042	15,559
Depreciation and amortization [Member]
Interim Period, Costs Not Allocable [Line Items]
Total Expense	897	928
Interest Expense [Member]
Interim Period, Costs Not Allocable [Line Items]
Total Expense	1,126	670
Other Income [Member]
Interim Period, Costs Not Allocable [Line Items]
Total Expense	(1,416)	(2)
Tax expense [Member]
Interim Period, Costs Not Allocable [Line Items]
Total Expense	151	318
Facilities [Member]
Interim Period, Costs Not Allocable [Line Items]
Total Expense	3,905	3,413
Shipping [Member]
Interim Period, Costs Not Allocable [Line Items]
Total Expense	1,059	1,193
Testing [Member]
Interim Period, Costs Not Allocable [Line Items]
Total Expense	418	917
IT services [Member]
Interim Period, Costs Not Allocable [Line Items]
Total Expense	1,471	1,091
Insurance [Member]
Interim Period, Costs Not Allocable [Line Items]
Total Expense	862	785
Manufacturing other expense [Member]
Interim Period, Costs Not Allocable [Line Items]
Total Expense	1,064	992
Selling, general and administrative Other expense [Member]
Interim Period, Costs Not Allocable [Line Items]
Total Expense	$ 2,224	$ 1,500

Business Segmentation and Geographical Distribution (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Non-US [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 5,169	$ 1,825
UNITED KINGDOM \| Product [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 3,326	$ 616

- Definition

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

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+ Details

The future maturities of the Company’s operating leases as of December 31, 2025 are as follows: (Details) $ in Thousands	Dec. 31, 2025 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2026	$ 1,863
2027	1,990
2028	1,612
2029	1,616
2030	1,639
Thereafter	2,387
Total payments	11,107
Less amounts representing interest	(2,054)
Total minimum payments required	$ 9,053

401(k) Profit-Sharing Plan (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Retirement Benefits [Abstract]
Defined contribution plan, cost	$ 259	$ 206

Accrued Expenses and Asset Retirement Obligations (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Payables and Accruals [Abstract]
Asset Retirement Obligation, Liabilities Incurred	$ 46	$ 8
Asset Retirement Obligation, Liabilities Settled	98	0
Asset Retirement Obligation, Accretion Expense	$ 8	$ 8

We determine the allowance for credit losses by identifying troubled accounts and by using historical experience applied to an aging of accounts, as well as expected losses based on the current and anticipated macroeconomic environment. (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Accounting Policies [Abstract]
Balance, beginning	$ 786	$ 225
Current period provisions	836	564
Write offs	(816)	(3)
Balance, ending	$ 806	$ 786

Contract balances for the years ended December 31, 2025, 2024, and 2023 are as follows (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Accounting Policies [Abstract]
Accounts receivable	$ 7,642	$ 5,655	$ 3,692
Contract liabilities	$ 930	$ 5,571	$ 2,353

Cover - USD ($)	12 Months Ended
Cover - USD ($)	Dec. 31, 2025	Mar. 30, 2026	Jun. 30, 2025
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2025
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2025
Current Fiscal Year End Date	--12-31
Entity File Number	001-42589
Entity Registrant Name	SOLESENCE, INC.
Entity Central Index Key	0000883107
Entity Tax Identification Number	36-3687863
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	1319 Marquette Drive
Entity Address, City or Town	Romeoville
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60446
City Area Code	(630)
Local Phone Number	771-6708
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	SLSN
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 27,254,231
Entity Common Stock, Shares Outstanding		70,632,445
ICFR Auditor Attestation Flag	false
Document Financial Statement Error Correction [Flag]	false
Auditor Firm ID	49
Auditor Name	RSM US LLP
Auditor Location	Milwaukee, Wisconsin

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance at Dec. 31, 2023	$ 496	$ 106,069	$ (104,663)	$ 1,902
Beginning balance (in shares) at Dec. 31, 2023	49,627,254
Issuance of shares and stock option exercises	$ 204	7,880		8,084
Issuances of shares and stock option exercises (in shares)	20,476,025
Stock-based compensation		725		725
Net income			4,235	4,235
Ending balance at Dec. 31, 2024	$ 700	114,674	(100,428)	14,946
Ending balance (in shares) at Dec. 31, 2024	70,103,279
Issuance of shares and stock option exercises	$ 6	317		323
Issuances of shares and stock option exercises (in shares)	510,766
Stock-based compensation		575		575
Net income			1,790	1,790
Ending balance at Dec. 31, 2025	$ 706	$ 115,566	$ (98,638)	$ 17,634
Ending balance (in shares) at Dec. 31, 2025	70,614,045

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

- Definition

Equity impact of the value of new stock issued during the period. Includes shares issued in an initial public offering or a secondary public offering.

+ References + Details

- Definition

Amount of equity (deficit) attributable to parent. Excludes temporary equity and equity attributable to noncontrolling interest.

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+ Details

Lease Commitments (Tables)

12 Months Ended

Dec. 31, 2025

Commitments and Contingencies Disclosure [Abstract]

Quantitative information regarding the Company’s leases is as follows:

	Twelve Months Ended December 31, 2025		Twelve Months Ended December 31, 2024
Components of lease cost
Operating lease cost components:
Operating lease cost		2,126		1,944
Variable lease cost		949		684
Short-term lease cost		494		334
Sub-lease income		—		(511	)
Total operating lease costs		3,569		2,451
Total lease cost	$	3,569	$	2,451

Supplemental cash flow information related to leases is as follows for the years ended December 31, 2025 and 2024:

	2025			2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases	$	2,363		$	2,115

Lease liabilities arising from obtaining right-of-use assets	$	430		$	1,019
Weighted-average remaining lease term-operating leases (in years)		6.01			6.8
Weighted-average discount rate-operating leases		7.36	%		7.6	%

The future maturities of the Company’s operating leases as of December 31, 2025 are as follows:

2026	$	1,863
2027		1,990
2028		1,612
2029		1,616
2030		1,639
Thereafter		2,387
Total payments	$	11,107
Less amounts representing interest		(2,054	)
Total minimum payments required	$	9,053

Cybersecurity Risk Management and Strategy Disclosure

12 Months Ended

Dec. 31, 2025

Cybersecurity Risk Management, Strategy, and Governance [Abstract]

Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]

Risk Assessment and Strategy

Our overall strategy in combatting known cybersecurity risks includes a variety of individual tactics, including:

●

The use of antivirus software, virtual private networks, email security, as well as other software to prevent and detect data intrusions.

●

The deployment of updates and patches as they are available and maintaining the current versions of major software to reduce the exposure to vulnerabilities.

●

If necessary, the use of third-party security experts if and when an incident is detected.

Cybersecurity Risk Management Third Party Engaged [Flag]

true

Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Text Block]

Cybersecurity Risk Board of Directors Oversight [Text Block]

Management Oversight

Day-to-day management of cybersecurity threats is conducted by our information technology consultant which is charged with identifying and reporting threats to senior management, which then reports to the Board of Directors.

Board Oversight

The Board of Directors is responsible for oversight of management’s efforts to eliminate cybersecurity risks.

Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block]

The Board of Directors is responsible for oversight of management’s efforts to eliminate cybersecurity risks.

Cybersecurity Risk Role of Management [Text Block]

Quantitative information regarding the Company’s leases is as follows: (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Operating lease cost components:
Operating lease cost	$ 2,126	$ 1,944
Variable lease cost	949	684
Short-term lease cost	494	334
Sub-lease income		(511)
Total operating lease costs	3,569	2,451
Total lease cost	$ 3,569	$ 2,451

Stock Options and Stock Grants

12 Months Ended

Dec. 31, 2025

Share-Based Payment Arrangement [Abstract]

Stock Options and Stock Grants

(10) Stock Options and Stock Grants

We have entered into stock option agreements with certain officers, employees and directors. The stock options granted prior to the adoption of the 2019 Equity Compensation Plan (the “2019 Plan”) on November 19, 2019 generally expired ten years from the date of grant. Future options to be granted under the 2025 Equity Compensation Plan (the “2025 Plan”) and 2019 Plan will expire seven years from the date of grant.

Employee Stock Options

We follow ASC Topic 718, Share-Based Payments, in which compensation expense is recognized only for share-based payments expected to vest.


	Years ended December 31,
	2025		2024
Share-based compensation expense	$	575	$	725
Remaining unrecognized compensation expense		692		1,057
Remaining weighted average-period, expense recognition (years)		2.0		2.4
Tax effect	$	335		77

We use the Black-Scholes option pricing model to determine the fair value of stock-based compensation. The Black-Scholes model requires us to make several assumptions, including the estimated length of time employees will retain their vested stock options before exercising them (“expected term”), the estimated volatility of our common stock price over the expected term, and estimated forfeitures. Expected price volatility is based on the daily market rate changes of our stock. The active shares granted prior to fiscal 2020 had a contractual life of 10 years as dictated by the 2010 Plan. The Black-Scholes model also requires a risk-free interest rate, which is based on the U.S. Treasury yield curve in effect at the time of the grant, and the dividend yield on our common stock, which is assumed to be zero since we do not pay dividends and have no current plans to do so in the future. Changes in these assumptions can materially affect the estimate of fair value of stock-based compensation and consequently, the related expense recognized on the statement of operations. We recognize stock-based compensation expense on a straight-line basis over the requisite service period.

The following table illustrates the various assumptions used to calculate the Black-Scholes option pricing model for options granted for all years presented:

	Years Ended December 31,
	2025			2024
Weighted-average risk-free interest rates:		4.0	%		4.3	%

Dividend yield:		0	%		0	%

Weighted-average expected life (years) of the option:		4			4

Weighted-average expected stock price volatility:		91	%		91	%

Weighted-average fair value of the options granted:	$	2.20		$	1.74

Additional disclosures for options granted for all years presented:

	Years Ended December 31,
	2025			2024
Vesting period (years) of shares granted in period		3			3

Contractual life (years) of shares granted in period		7			7

Estimated forfeitures		8	%		8	%

The following table summarizes the option activity for our employees and directors during the year ended December 31, 2025:

						Weighted
				Weighted		Average		Aggregate
				Average		Remaining		Intrinsic
	Shares			Exercise Price		Contractual		Value
Options	(Rounded)			per Share		Term (Years)		(000s)
Outstanding on January 1, 2025		3,221,739		$	1.47		4.4	$	3,961

Granted		106,000		$	3.06
Exercised		(510,766	)	$	0.64
Forfeited or expired		(64,500	)	$	2.03

Outstanding on December 31, 2025		2,752,473		$	1.67		3.8	$	1,464
Exercisable on December 31, 2025		2,206,050		$	1.62		3.3	$	1,279

Shares available for grant		2,956,900

The aggregate intrinsic value in the table above is based on our closing stock price of $1.66 on the last business day for the year ended December 31, 2025.


	Years ended December 31,
	2025		2024
Shares exercised		510,766		455,995
Total intrinsic value	$	1,596	$	370
Cash received	$	323	$	239

Based on our election of the “with and without” approach, no realized tax benefits from stock options were recognized for the years ended December 31, 2025 and 2024.

Capital Stock (Details Narrative) - USD ($)			12 Months Ended
Capital Stock (Details Narrative) - USD ($)	Jun. 20, 2024	Mar. 01, 2024	Dec. 31, 2025	Dec. 31, 2024
Class of Stock [Line Items]
Preferred stock, shares authorized			24,088	24,088
Consideration from sale of shares				$ 6,000,000
Common Stock [Member]
Class of Stock [Line Items]
Number of shares issued			510,766	20,476,025
Shares issued upon conversion	15,000,000
Series X Preferred Stock [Member]
Class of Stock [Line Items]
Number of shares issued		15,000
Price per share		$ 400
Consideration from sale of shares		$ 6,000,000
Shares converted	15,000

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2025

Accounting Policies [Abstract]

We determine the allowance for credit losses by identifying troubled accounts and by using historical experience applied to an aging of accounts, as well as expected losses based on the current and anticipated macroeconomic environment.

	2025			2024
Balance, beginning	$	786		$	225
Current period provisions		836			564
Write offs		(816	)		(3	)
Balance, ending	$	806		$	786

Contract balances for the years ended December 31, 2025, 2024, and 2023 are as follows

Contract balances for the years ended December 31, 2025, 2024, and 2023 are as follows:

	Accounts Receivable		Contract Liabilities
2023	$	3,692		2,353
2024		5,655		5,571
2025		7,642		930

Earnings applicable to common stock and common stock shares used in the calculation of basic and diluted earnings per share are as follows

Earnings applicable to common stock and common stock shares used in the calculation of basic and diluted earnings per share are as follows:


	Years Ended December 31,
	2025		2024
Numerator: (in Thousands)
Net income	$	1,790	$	4,235

Denominator:
Weighted average number of basic common shares outstanding		70,344,152		62,350,459
Weighted average additional shares assuming conversion of in-the-money stock options to common shares		2,235,563		2,678,356
Weighted average number of diluted common shares outstanding		72,579,715		65,028,815

Basic earnings per common share:
Net income per share – basic	$	0.03	$	0.07
Diluted earnings per common share:
Net income per share – diluted	$	0.02	$	0.07

Supplemental cash flow information related to leases is as follows for the years ended December 31, 2025 and 2024: (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Operating cash outflow from operating leases	$ 2,363	$ 2,115
Lease liabilities arising from obtaining right-of-use assets	$ 430	$ 1,019
Weighted-average remaining lease term-operating leases (in years)	6 years 3 days	6 years 9 months 18 days
Weighted-average discount rate-operating leases	7.36%	7.60%

Description of Business

12 Months Ended

Dec. 31, 2025

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business

(1) Description of Business

Solésence, Inc. (“Solésence”, “Company”, “we”, “our”, or “us”) is a science-driven company which, along with its wholly owned subsidiary, Solésence, LLC (our “Solésence beauty science subsidiary”), is focused in various beauty- and life-science markets.  Using consumer health as our end-goal and science and innovation to guide the path, skin health and medical diagnostics combined currently make up the majority of our business and drive our forward growth strategy.  We offer engineered materials, formulation development and commercial manufacturing through an integrated family of technologies. Our expertise in materials engineering allows us to effectively coat and disperse particles on a nano and “non-nano” scale for use in a variety of skin health markets, including for use in sunscreens as active ingredients and as fully developed prestige skin care and cosmetics products, marketed and sold through our Solésence beauty science subsidiary.  In terms of our life sciences focus, we have seen demand decrease for our medical diagnostics ingredients. Additionally, we continue to sell products in legacy markets, including architectural coatings, industrial coating applications, abrasion-resistant additives, plastics additives, all of which, along with medical diagnostics, fall into the advanced materials product category.

We target markets, primarily related to skin health products and ingredients, as well as diagnostic life sciences ingredients where we believe our materials and products offer practical and competitive minerals-based solutions. We traditionally work closely with current customers in these target markets to identify their material and performance requirements. We market our materials to various end-use applications manufacturers, and our Solésence® products to cosmetics and skin care brands.

Recently developed technologies have made certain new products possible and opened potential new markets. During 2015 we were granted a patent on a new type of particle surface treatment (coating) — now called Active Stress Defense ™ Technology — which became the cornerstone of our new product development in personal care, with first revenue recognized during 2016. Active Stress Defense™ now refers to a suite of three proprietary technologies — Original Active Stress Defense™, Kleair™, and Bloom™ — all three of which either utilize a unique and proprietary, mineral-based technology or work synergistically with one of our unique and proprietary, mineral-based technologies to improve performance and/or aesthetics. Our ongoing innovation efforts include new IP in areas that advance environmental protection, align with market needs, and complement our existing technologies. Through the creation of our Solésence beauty science subsidiary, we utilize our technology suite to manufacture and sell fully developed solutions to targeted customers in the skin care industry, typically in prestige skin care and cosmetics markets, in addition to the ingredients we have traditionally sold in the personal care area.

Although our primary strategic focus has been the North American market, we currently sell materials to customers overseas and have been working to expand our reach within foreign markets. On April 8, 2025 the Company’s securities were uplisted to Nasdaq trading under the symbol SLSN. Prior to listing on Nasdaq our common stock traded on the OTCQB marketplace under the symbol NANX.

While product sales comprise the majority of our revenue, we also recognize revenue from other sources from time to time. These activities are not expected to drive the long-term growth of the business. For this reason, we classify such revenue as “other revenue” in our Consolidated Statements of Operations, as it does not represent revenue directly from the sale of our products.

Under SEC Release 33-10513; 34-83550, Amendments to Smaller Reporting Company Definition, the Company qualifies as a smaller reporting company and accordingly, it has scaled some of its disclosures of financial and non-financial information in this annual report. The Company will continue to determine whether to provide additional scaled disclosures of financial or non-financial information in future quarterly reports, annual reports and/or proxy statements if it remains a smaller reporting company under SEC rules.

Inventories, net

12 Months Ended

Dec. 31, 2025

Inventory Disclosure [Abstract]

Inventories, net

(4) Inventories, net

Inventories consist of the following:


	As of December 31,
	2025			2024
Raw materials	$	16,533		$	17,396
Finished goods		4,699			4,858
Inventory reserve		(2,721	)		(1,987	)
Total Inventories, net		18,511			20,267

Business Segmentation and Geographical Distribution

12 Months Ended

Dec. 31, 2025

Segment Reporting [Abstract]

Business Segmentation and Geographical Distribution

(13) Business Segmentation and Geographical Distribution

The Company operates as a single business segment, in which the factors used to make this determination include differences in products, services, geographical areas, regulatory environment, and other such criteria considered for the appropriateness of aggregation. The types of products and services for which the sole reportable segment, which is the same as the Company as a whole, offered by the company is discussed in Note 1. Since the Company operates as a single segment, there were no intra-entity sales or transfers.

The role of Chief Operating Decision Maker for the Company is comprised of a committee that includes the Chief Executive and Chief Operating Officers. The Chief Operating Decision Maker assesses performance for the single segment and decides how to allocate resources based on net income that also is reported on the income statement as net income. The measure of segment assets is reported on the balance sheet as total assets. The accounting policies of the sole segment are the same as those described in the summary of significant accounting policies in Note 2.


	As of December 31,
	2025			2024
Total revenue	$	62,064		$	52,347

Employee costs		14,905			12,933
Contractors and professional services		11,566			7,815
Materials and supplies		22,042			15,559
Depreciation and amortization		897			928
Interest expense		1,126			670
Other income		(1,416	)		(2	)
Tax expense		151			318
Facilities		3,905			3,413
Shipping		1,059			1,193
Testing		418			917
IT services		1,471			1,091
Insurance		862			785
Manufacturing other expense		1,064			992
Selling, general and administrative other expense		2,224			1,500
Total Expense		60,274			48,112

Net Income	$	1,790		$	4,235

Revenue from international sources approximated $5,169 and $1,825 for the years ended December 31, 2025 and 2024, respectively. As part of our revenue from international sources, we recognized approximately $3,326 and $616 in product revenue from United Kingdom companies, in the aggregate, for the years ended December 31, 2025 and 2024, respectively.

	For the years ended December 31
Product Category	2025		2024
Consumer Products	$	54,868	$	44,373
Personal Care Ingredients		6,339		6,827
Advanced Materials		857		1,147
Total Sales	$	62,064	$	52,347

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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-URI https://asc.fasb.org/280/tableOfContent

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-26

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-41

+ Details

Management Oversight

12 Months Ended

Dec. 31, 2025

Cybersecurity Risk Management, Strategy, and Governance [Abstract]

Management Oversight

Management Oversight

Board Oversight

The Board of Directors is responsible for oversight of management’s efforts to eliminate cybersecurity risks.

Equipment and leasehold improvements consist of the following: (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Property, Plant and Equipment [Line Items]
Property plant and equipment,gross	$ 38,032	$ 35,550
Less: Accumulated depreciation and amortization	(23,703)	(22,816)
Property, Plant and Equipment, Net, Total	14,329	12,734
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment,gross	30,541	23,551
Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment,gross	285	1,014
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment,gross	1,014	126
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment,gross	5,312	5,153
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment,gross	$ 880	$ 5,706

The following table summarizes the option activity for our employees and directors during the year ended December 31, 2025: (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]
Shares Outstanding, Beginning	3,221,739
Shares Outstanding, Beginning, (per share)	$ 1.47
Weighted Average Remaining Contractual Term, Outstanding, end	3 years 9 months 18 days	4 years 4 months 24 days
Shares Outstanding, Beginning (Intrinsic value)	$ 3,961
Granted	106,000
Granted (per share)	$ 3.06
Exercised	(510,766)
Exercised (per share)	$ 0.64
Forfeited or expired	(64,500)
Forfeited or expired (per share)	$ 2.03
Shares Outstanding, Ending	2,752,473	3,221,739
Shares Outstanding, Ending, (per share)	$ 1.67	$ 1.47
Shares Outstanding, Ending (Intrinsic value)	$ 1,464	$ 3,961
Shares Exercisable	2,206,050
Shares Exercisable, (per share)	$ 1.62
Shares Exercisable (years)	3 years 3 months 18 days
Shares Exercisable (Intrinsic value)	$ 1,279
Shares available for grant	2,956,900

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Current assets:
Cash	$ 1,288	$ 1,409
Trade accounts receivable	7,642	5,655
Allowance for credit losses	(806)	(786)
Trade accounts receivable, net	6,836	4,869
Inventories, net	18,511	20,267
Prepaid expenses and other current assets	2,141	2,803
Total current assets	28,776	29,348
Equipment and leasehold improvements, net	14,329	12,734
Operating leases, right of use	6,913	7,917
Other assets, net	37	3
Total assets	50,055	50,002
Current liabilities:
Line of credit – accounts receivable, related party	4,767
Current portion of line of credit – inventory, related party		4,000
Current portion of term debt, related party		1,000
Current portion of operating lease obligations	1,255	1,260
Accounts payable	4,098	9,093
Deferred revenue	930	5,571
Accrued expenses	2,879	4,849
Total current liabilities	13,929	25,773
Long-term portion of operating lease obligations	7,798	9,037
Long-term line of credit – inventory, related party	9,500
Long-term debt, related party	1,000
Asset retirement obligations	194	246
Total long-term liabilities	18,492	9,283
Stockholders’ equity:
Preferred stock, $.01 par value, 24,088 shares authorized, and no shares issued and outstanding
Common stock, $.01 par value, 95,000,000 shares authorized; 70,614,045 and 70,103,279 shares issued and outstanding on December 31, 2025 and 2024, respectively	706	700
Additional paid-in capital	115,566	114,674
Accumulated deficit	(98,638)	(100,428)
Total stockholders’ equity	17,634	14,946
Total liabilities and stockholders’ equity	$ 50,055	$ 50,002

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

The following table is a reconciliation of the U.S. federal statutory rate of 21%

As further described in Recently Adopted Pronouncements, the Company has elected to prospectively adopt the guidance in ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Taxes Disclosures, or ASU 2023-09. The following table is a reconciliation of the U.S. federal statutory rate of 21% to the Company's effective rate for the year ended December 31, 2025 in accordance with the guidance in ASU No. 2023-09:

	2025
Income tax credit at statutory rates	$	392
Nondeductible or nondeductible items
Permanent tax deduction stock options exercised		(271	)
Other nontaxable or nondeductible		3
Recorded tax credits		(167	)
State income tax, net of federal benefits		59
Other
Expiration of net operating losses and credits		968
Stock based compensation true-up		207
Section 174 true-up		167
R&D credit true-up		(153	)
Miscellaneous		1
Change in valuation allowance		(1,133	)
	$	73

State taxes in Illinois made up the majority of the tax effect in this category and the supplemental cash flow information in the Consolidated Statement of Cash Flows.

The following table is a reconciliation of the U.S. federal statutory rate of 21% to the Company's effective rate for the year ended December 31, 2024, in accordance with the guidance prior to the adoption of ASU 2023-09:

	2024
Income tax credit at statutory rates	$	937
Under accrual of income taxes		(1	)
Nondeductible expenses		5
Recorded tax credits		(116	)
Permanent tax deduction stock options exercised		(27	)
State income tax, net of federal benefits		179
Expiration of net operating losses and credits		332
Effect of change in deferred tax rate		49
Expiration of stock options		46
Other		(39	)
Change in valuation allowance		(1,138	)
	$	227

The approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets (before allocation of valuation allowances) is as follows:


	As of December 31,
	2025			2024
Approximate effect of deferred tax liabilities:
Excess tax depreciation	$	(420	)	$	(496	)
ASC 842 operating lease asset		(1,798	)		(1,938	)
Total approximate tax effect of deferred tax liabilities		(2,218	)		(2,434	)

Approximate effect of deferred tax assets:
Net operating loss carryforwards	$	9,266		$	10,218
163(j) Business interest limitation carryforwards		114			—
Inventory and other allowances		29			764
Excess book amortization		—			60
174 research and experimental expenditures		682			1,053
Share-based compensation		688			788
Tax credits		509			189
ASC 842 Operating Lease Liability		2,355			2,520
Other accrued costs		1,142			292
Total approximate tax effect of deferred tax assets		14,785			15,884

Less: valuation allowance		(12,567	)		(13,450	)
Total approximate tax effect on temporary differences	$	—		$	—

Accrued expenses consist of the following: (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Payables and Accruals [Abstract]
Accrued payroll and related expenses	$ 809	$ 1,597
Accrued accounts payable	292	1,824
Other	1,778	1,428
Total	$ 2,879	$ 4,849

We follow ASC Topic 718, Share-Based Payments, in which compensation expense is recognized only for share-based payments expected to vest. (Details) - Share-Based Payment Arrangement, Option [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based compensation expense	$ 575	$ 725
Remaining unrecognized compensation expense	$ 692	$ 1,057
Remaining weighted average-period, expense recognition (years)	2 years	2 years 4 months 24 days
Tax effect	$ 335	$ 77

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-Section 50
-Paragraph 2
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-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 2
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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Reference 24: http://www.xbrl.org/2003/role/disclosureRef
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Reference 25: http://www.xbrl.org/2003/role/disclosureRef
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Reference 26: http://www.xbrl.org/2003/role/disclosureRef
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Reference 28: http://www.xbrl.org/2003/role/disclosureRef
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Reference 29: http://www.xbrl.org/2003/role/disclosureRef
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Reference 30: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Equipment and Leasehold Improvements (Tables)

12 Months Ended

Dec. 31, 2025

Property, Plant and Equipment [Abstract]

Equipment and leasehold improvements consist of the following:

	As of December 31,
	2025			2024
Machinery and equipment	$	30,541		$	23,551
Office equipment		285			1,014
Office furniture		1,014			126
Leasehold improvements		5,312			5,153
Construction in progress		880			5,706
		38,032			35,550
Less: Accumulated depreciation and amortization		(23,703	)		(22,816	)
	$	14,329		$	12,734

Income Taxes

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

(8) Income Taxes

Our net income tax provision, including both current and deferred, related to U.S. federal and state income taxes, is $73. Our current federal and deferred tax expenses are zero.

	2025
Income tax credit at statutory rates	$	392
Nondeductible or nondeductible items
Permanent tax deduction stock options exercised		(271	)
Other nontaxable or nondeductible		3
Recorded tax credits		(167	)
State income tax, net of federal benefits		59
Other
Expiration of net operating losses and credits		968
Stock based compensation true-up		207
Section 174 true-up		167
R&D credit true-up		(153	)
Miscellaneous		1
Change in valuation allowance		(1,133	)
	$	73

State taxes in Illinois made up the majority of the tax effect in this category and the supplemental cash flow information in the Consolidated Statement of Cash Flows.

	2024
Income tax credit at statutory rates	$	937
Under accrual of income taxes		(1	)
Nondeductible expenses		5
Recorded tax credits		(116	)
Permanent tax deduction stock options exercised		(27	)
State income tax, net of federal benefits		179
Expiration of net operating losses and credits		332
Effect of change in deferred tax rate		49
Expiration of stock options		46
Other		(39	)
Change in valuation allowance		(1,138	)
	$	227


	As of December 31,
	2025			2024
Approximate effect of deferred tax liabilities:
Excess tax depreciation	$	(420	)	$	(496	)
ASC 842 operating lease asset		(1,798	)		(1,938	)
Total approximate tax effect of deferred tax liabilities		(2,218	)		(2,434	)

Approximate effect of deferred tax assets:
Net operating loss carryforwards	$	9,266		$	10,218
163(j) Business interest limitation carryforwards		114			—
Inventory and other allowances		29			764
Excess book amortization		—			60
174 research and experimental expenditures		682			1,053
Share-based compensation		688			788
Tax credits		509			189
ASC 842 Operating Lease Liability		2,355			2,520
Other accrued costs		1,142			292
Total approximate tax effect of deferred tax assets		14,785			15,884

Less: valuation allowance		(12,567	)		(13,450	)
Total approximate tax effect on temporary differences	$	—		$	—

The valuation allowance decreased approximately $1.0 million and $1.1 million for the years ended December 31, 2025 and 2024, respectively (net of approximately $5.4 million and $8.1 million for the years ended December 31, 2025 and 2024, respectively, for expiring net operating loss carryforwards and credits) due principally to the change in the net operating loss carryforward and uncertainty as to whether future taxable income will be generated prior to the expiration of the carryforward period. Under the Internal Revenue Code, certain ownership changes, including the prior issuance of preferred stock and our public offering of common stock, may subject us to annual limitations on the utilization of our net operating loss carryforward. As of December 31, 2025, it has been determined that we are not subject to annual limitations on the utilization of our net operating loss carryforward.

We have federal net operating loss carryforwards for tax purposes of approximately $36.9 million on December 31, 2025. $30.7 million expire between 2026 and 2038. All net operating loss carryforwards generated after January 1, 2018 do not expire. Therefore, $6.2 million in net operating losses generated since January 1, 2018 do not expire. We have Illinois net loss deduction carryforwards for tax purposes of approximately $18.5 million on December 31, 2025. Due to the provisions of Illinois Public Act 102-0669 signed November 16, 2021, Illinois net loss deductions expire between 2029 and 2039.

Tax years that remain subject to examination by major tax jurisdictions are open for years subsequent to 2021. Years with NOLs remain subject to examination until 3 years after the NOL is used or until the NOL expires.

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
-SubTopic 740
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482603/740-30-50-2

+ Details

The aggregate intrinsic value in the table above is based on our closing stock price of $1.66 on the last business day for the year ended December 31, 2025 (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares exercised	510,766
Share-Based Payment Arrangement, Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares exercised	510,766	455,995
Total intrinsic value	$ 1,596	$ 370
Cash received	$ 323	$ 239

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Inventories, net (Tables)

12 Months Ended

Dec. 31, 2025

Inventory Disclosure [Abstract]

Inventories consist of the following:


	As of December 31,
	2025			2024
Raw materials	$	16,533		$	17,396
Finished goods		4,699			4,858
Inventory reserve		(2,721	)		(1,987	)
Total Inventories, net		18,511			20,267

Stock Options and Stock Grants (Details Narrative) - Share-Based Payment Arrangement, Option [Member]	12 Months Ended
	Dec. 31, 2025
Prior to 2019 Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expiration period	10 years
2019 Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expiration period	7 years
2010 Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expiration period	10 years

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Related Party Notes and Lines of Credit (Tables)

12 Months Ended

Dec. 31, 2025

Debt Disclosure [Abstract]

Notes and lines of credit consist of the following:


		As of December 31, 2025				As of December 31, 2024
	Rate at December 31, 2025	Total Borrowing Capacity		Outstanding Borrowed Balance		Total Borrowing Capacity		Outstanding Borrowed Balance
Libertyville Bank & Trust ⁽¹⁾	7.75%	$	30	$	—	$	30	$	—
Libertyville Bank & Trust ⁽²⁾	7.75%		500		—		500		—
Beachcorp, LLC ⁽³⁾	7.50%		6,236		4,767		5,604		—
Beachcorp, LLC ⁽⁴⁾	7.50%		10,000		9,500		5,200		4,000
Strandler, LLC ⁽⁵⁾	7.50%		1,000		1,000		1,000		1,000

	Year ended December 31,
	2025		2024

Interest expense, related parties	$	1,123	$	656

Accrued interest consists of the following:

	As of December 31,
	2025		2024

Accrued interest expense, related parties	$	103	$	36

Outstanding balances associated with related parties are as follows:

	As of December 31,
	2025		2024

Beachcorp, LLC	$	14,267	$	4,000
Strandler, LLC		1,000		1,000

The following table illustrates the various assumptions used to calculate the Black-Scholes option pricing model for options granted for all years presented: (Details) - $ / shares	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]
Weighted-average risk-free interest rates	4.00%	4.30%
Dividend yield	0.00%	0.00%
Weighted-average expected life (years) of the option	4 years	4 years
Weighted-average expected stock price volatility	91.00%	91.00%
Weighted-average fair value of the options granted	$ 2.20	$ 1.74

Revenues from these three customers, as a percentage of total Company revenue, was approximately: (Details) - Customer Concentration Risk [Member] - Revenue Benchmark [Member]	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Customer One [Member]
Concentration Risk [Line Items]
Revenue from customers	29.00%	32.00%
Customer Three [Member]
Concentration Risk [Line Items]
Revenue from customers	16.00%
Customer Two [Member]
Concentration Risk [Line Items]
Revenue from customers	10.00%	13.00%
Customers One Through Three [Member]
Concentration Risk [Line Items]
Revenue from customers	55.00%	45.00%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 275
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482861/275-10-50-18

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 275
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-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482861/275-10-50-18

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478785/954-310-50-2

+ Details

- Definition

For an entity that discloses a concentration risk in relation to quantitative amount, which serves as the "benchmark" (or denominator) in the equation, this concept represents the concentration percentage derived from the division.

+ References + Details

Equipment and Leasehold Improvements (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2023
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 888	$ 918

Earnings applicable to common stock and common stock shares used in the calculation of basic and diluted earnings per share are as follows (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Numerator: (in Thousands)
Net income	$ 1,790	$ 4,235
Denominator:
Weighted average number of basic common shares outstanding	70,344,152	62,350,459
Weighted average additional shares assuming conversion of in-the-money stock options to common shares	2,235,563	2,678,356
Weighted average number of diluted common shares outstanding	72,579,715	65,028,815
Basic earnings per common share:
Net income per share – basic	$ 0.03	$ 0.07
Diluted earnings per common share:
Net income per share – diluted	$ 0.02	$ 0.07

Capital Stock

12 Months Ended

Dec. 31, 2025

Equity [Abstract]

Capital Stock

(9) Capital Stock

As of December 31, 2024, and 2025, respectively, the Company had 24,088 authorized but unissued shares of preferred stock.

Pursuant to the Securities Purchase Agreement executed on March 1, 2024, the Company issued to Strandler 15,000 shares of the Company’s Series X Preferred Stock (the “Series X Preferred Stock”) at a purchase price per share of $400, for total consideration of $6,000,000, in a transaction exempt from registration under the Securities Act of 1933, as amended, pursuant to Section 4(a)(2) thereof. On June 20, 2024, Strandler converted its 15,000 shares of Series X Preferred Stock to 15,000,000 shares of Common Stock.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 8A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-8A

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
-Section 50
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
-Section 50
-Paragraph 13
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
-Section 50
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478448/946-505-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480237/815-40-50-6

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480008/505-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-Name Accounting Standards Codification
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-URI https://asc.fasb.org/505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-14

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-URI https://asc.fasb.org/1943274/2147481112/505-10-50-14

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-18

+ Details

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Revenue:
Total revenue	$ 62,064	$ 52,347
Operating expense:
Cost of revenue	46,001	36,159
Gross profit	16,063	16,188
Research and development expense	4,090	3,837
Selling, general and administrative expense	10,401	7,219
Net income from operations	1,572	5,132
Interest expense, net	931	670
Other income, net	1,222
Net income before provision for income taxes	1,863	4,462
Provision for income taxes	73	227
Net income	$ 1,790	$ 4,235
Net income per share-basic	$ 0.03	$ 0.07
Weighted average number of basic common shares outstanding	70,344,152	62,350,459
Net income per share-diluted	$ 0.02	$ 0.07
Weighted average number of diluted common shares outstanding	72,579,715	65,028,815
Product [Member]
Revenue:
Total revenue	$ 61,794	$ 51,890
Product and Service, Other [Member]
Revenue:
Total revenue	$ 270	$ 457

Significant Customers (Details Narrative) - Supply Commitment [Member]	Dec. 31, 2025
Supply Commitment [Line Items]
Equipment sale - net book value	115.00%
Equipment sale- original book value	30.00%

Insider Trading Arrangements	12 Months Ended
Insider Trading Arrangements	Dec. 31, 2025
Insider Trading Arrangements [Line Items]
No Insider Trading [Flag]	true

Notes and lines of credit consist of the following: (Details) - USD ($)
$ in Thousands

1 Months Ended

12 Months Ended

May 27, 2025

Mar. 01, 2024

Nov. 13, 2023

Jan. 28, 2022

Jul. 31, 2014

Dec. 31, 2025

Dec. 21, 2021

May 25, 2025

Dec. 31, 2024

Jan. 26, 2022

Letter of Credit [Member]

Line of Credit Facility [Line Items]

Debt Instrument, Description of Variable Rate Basis

prime rate

Debt Instrument, Basis Spread on Variable Rate

1.00%

Maturity date

Dec. 22, 2026

Libertyville Bank and Trust [Member]

Line of Credit Facility [Line Items]

Related Party Transaction, Rate

^[1]

7.75%

Line of Credit Facility, Current Borrowing Capacity

^[1]

$ 30

Long-Term Line of Credit

^[1]

Libertyville Bank and Trust One [Member]

Line of Credit Facility [Line Items]

Related Party Transaction, Rate

^[2]

7.75%

Line of Credit Facility, Current Borrowing Capacity

^[2]

$ 500

500

Long-Term Line of Credit

^[2]

Beachcorp, LLC [Member]

Line of Credit Facility [Line Items]

Related Party Transaction, Rate

^[3]

7.50%

Line of Credit Facility, Current Borrowing Capacity

^[3]

$ 6,236

5,604

Long-Term Line of Credit

^[3]

$ 4,767

Beachcorp, LLC One [Member]

Line of Credit Facility [Line Items]

Related Party Transaction, Rate

^[4]

7.50%

Line of Credit Facility, Current Borrowing Capacity

^[4]

$ 10,000

5,200

Long-Term Line of Credit

^[4]

$ 9,500

4,000

Strandler, LLC [Member]

Line of Credit Facility [Line Items]

Related Party Transaction, Rate

^[5]

7.50%

Line of Credit Facility, Current Borrowing Capacity

^[5]

$ 1,000

1,000

Long-Term Line of Credit

^[5]

$ 1,000

Letter of Credit [Member]

Line of Credit Facility [Line Items]

Line of Credit Facility, Maximum Borrowing Capacity

$ 30

Revolving Credit Facility [Member] | Business Loan Agreement [Member] | Beachcorp, LLC [Member]

Line of Credit Facility [Line Items]

Line of Credit Facility, Maximum Borrowing Capacity

$ 12,000

$ 8,000

$ 6,000

Debt Instrument, Description of Variable Rate Basis

prime rate

Debt Instrument, Basis Spread on Variable Rate

0.75%

Line of Credit Facility, Expiration Date

Apr. 30, 2027

Oct. 01, 2025

Mar. 31, 2024

Inventory Facility [Member] | Business Loan Agreement [Member] | Beachcorp, LLC [Member]

Line of Credit Facility [Line Items]

Line of Credit Facility, Maximum Borrowing Capacity

$ 4,000

Debt Instrument, Description of Variable Rate Basis

prime rate

Debt Instrument, Basis Spread on Variable Rate

0.75%

Line of Credit Facility, Expiration Date

Mar. 31, 2024

Line of Credit Percentage of Eligible inventory

50.00%

Replacement Promissory Note [Member] | Business Loan Agreement [Member] | Beachcorp, LLC [Member]

Line of Credit Facility [Line Items]

Line of Credit Facility, Maximum Borrowing Capacity

$ 10,000

$ 5,200

Debt Instrument, Description of Variable Rate Basis

prime rate

Debt Instrument, Basis Spread on Variable Rate

0.75%

Line of Credit Facility, Expiration Date

Apr. 30, 2027

Oct. 01, 2025

Line of Credit Percentage of Eligible inventory

55.00%

Term Loan [Member] | Strandler, LLC [Member]

Line of Credit Facility [Line Items]

Debt Instrument, Description of Variable Rate Basis

prime rate

Debt Instrument, Basis Spread on Variable Rate

0.75%

Line of Credit Facility, Expiration Date

Apr. 30, 2027

Oct. 01, 2025

[1]	Since July 2014, we have maintained a bank-issued letter of credit for up to $30 in borrowings, with interest at the prime rate plus 1%, to support our obligations under our Romeoville, Illinois facility lease agreement. No borrowings have been incurred under this promissory note. It is our intention to renew this note annually. Because there were no amounts outstanding on the note at any time during 2025 or 2024, we have recorded no related liability on our condensed consolidated balance sheet.
[2]	On December 21, 2021, the existing credit agreement with Libertyville was converted for use to support our obligations under our newly leased manufacturing and warehouse space in Bolingbrook, Illinois. Interest on drawn balances will be at the prime rate plus 1%. This credit agreement has a maturity of December 22, 2026. We expect to renew this agreement annually, as the lease requires. This credit agreement is secured by all the unencumbered assets of the Company and has superior collateral rights to those credit facilities with Beachcorp, LLC and Strandler, LLC.
[3]	On January 28, 2022, the Company entered into an Amended and Restated Business Loan Agreement (the “A&R Loan Agreement”), with Beachcorp, LLC, and a new promissory note in order to evidence the A/R Revolver facility, including an amendment to expand the limit on the A/R Revolver Facility from $6,000 to $8,000, reduce the interest rate to the prime rate plus 0.75%, and extend the maturity of the A/R Revolver Facility to March 31, 2024. On March 1, 2024, the Company entered into a Second Amendment to the Amended and Restated Business Loan Agreement extending the maturity of the A/R Revolver Facility to October 1, 2025. On May 27, 2025, the Company entered into a Third Amendment to the Amended and Restated Business Loan Agreement to expand the limit on the A/R Revolver Facility from $8,000 to $12,000 and extend its maturity to April 30, 2027.
[4]	On January 28, 2022, the Company entered into the A&R Loan Agreement and a new revolving loan agreement (“Inventory Facility”) with Beachcorp, LLC, and a new promissory note in order to evidence the Inventory Facility. The maximum borrowing amount under the Inventory Facility was $4,000, with a borrowing base consisting of up to 50% of the value of qualified inventory of the Company. The interest rate for the Inventory Revolver is at the prime rate plus 0.75%, and it was set to mature on March 31, 2024. On November 13, 2023, the Company entered into a Replacement Promissory Note with Beachcorp, LLC replacing the Inventory Facility promissory note executed on January 28, 2022. The maximum borrowing amount under the replacement Inventory Facility was increased to $5,200, with a borrowing base consisting of up to 55% of the value of qualified inventory of the Company. The interest rate for the replacement Inventory Revolver remains at the prime rate plus 0.75%. On March 1, 2024, the company entered into a Second Amendment to the Business Loan Agreement extending the maturity of the Inventory Revolver Facility to October 1, 2025. On May 27, 2025, the Company entered into a Third Amendment to the Business Loan Agreement to expand the limit on the Inventory Revolver Facility from $5,200 to $10,000 and extend its maturity to April 30, 2027.
[5]	On January 28, 2022, the Company entered into an additional Business Loan Agreement (the “New Term Loan Agreement”) with Strandler, LLC, which effectively transferred or assigned the Term Loan to Strandler, LLC from Beachcorp, LLC. Interest on the New Term Loan is at the prime rate plus 0.75%. Strandler, LLC is also an affiliate of Bradford T. Whitmore. On March 1, 2024, the company entered into a Second Amendment to the Business Loan Agreement extending the maturity of the Term Maturity Note to October 1, 2025. On May 27, 2025, the Company entered into a Third Amendment to the Business Loan Agreement extending the maturity of the Term Maturity Note to April 30, 2027.

Inventories consist of the following: (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Inventory Disclosure [Abstract]
Raw materials	$ 16,533	$ 17,396
Finished goods	4,699	4,858
Inventory reserve	(2,721)	(1,987)
Total Inventories, net	$ 18,511	$ 20,267

The following table is a reconciliation of the U.S. federal statutory rate of 21% (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Income Tax Disclosure [Abstract]
Income tax credit at statutory rates	$ 392	$ 937
Under accrual of income taxes		(1)
Nondeductible or nondeductible items
Permanent tax deduction stock options exercised	(271)	(27)
Nondeductible expenses	3	5
Recorded tax credits	(167)	(116)
State income tax, net of federal benefits	59	179
Other
Expiration of net operating losses and credits	968	332
Effect of change in deferred tax rate		49
Expiration of stock options		46
Stock based compensation true-up	207
Section 174 true-up	167
R&D credit true-up	(153)
Other	1	(39)
Change in valuation allowance	(1,133)	(1,138)
	$ 73	$ 227

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Pay vs Performance Disclosure [Table]
Net Income (Loss)	$ 1,790	$ 4,235

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

The revenues for 2025 and 2024 by category are as follows: (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Revenue from External Customer [Line Items]
Total revenue	$ 62,064	$ 52,347
Consumer Products [Member]
Revenue from External Customer [Line Items]
Total revenue	54,868	44,373
Personal Care ingredients [Member]
Revenue from External Customer [Line Items]
Total revenue	6,339	6,827
Advanced Materials [Member]
Revenue from External Customer [Line Items]
Total revenue	$ 857	$ 1,147

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

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+ Details

Significant Customers (Tables)

12 Months Ended

Dec. 31, 2025

Risks and Uncertainties [Abstract]

Revenues from these three customers, as a percentage of total Company revenue, was approximately:

We had three significant customers for the year ended December 31, 2025.

Revenues from these three customers, as a percentage of total Company revenue, was approximately:

		For the years ended
		December 31,
Customer #	Product Category	2025			2024
1	Consumer Products		29	%		32	%
2	Consumer Products		16	%		—	%
3	Personal Care Ingredients		10	%		13	%
	Total		55	%		45	%

Contractual accounts receivable balances for these three customers was approximately:

		As of December 31,
Customer #	Product Category	2025		2024
1	Consumer Products	$	3,695	$	2,366
2	Consumer Products		575		—
3	Personal Care Ingredients		389		160
	Total	$	4,659	$	2,526

Lease Commitments

12 Months Ended

Dec. 31, 2025

Commitments and Contingencies Disclosure [Abstract]

Lease Commitments

(6) Lease Commitments

The Company’s operating lease portfolio is comprised of operating leases for office, warehouse space and equipment. Certain of the Company’s leases include one or more options to renew or terminate the lease at the Company’s discretion. The Company regularly evaluates the renewal and termination options and when they are reasonably certain of exercise, includes the renewal or termination option in our lease term.

The discount rates used for leases accounted for under ASC 842 are based on an interest rate yield curve developed for the leases in the Company’s portfolio.

In the fourth quarter of 2025, the Company exited its lease in Burr Ridge at the conclusion of the lease term.

The office leases contain variable lease payments which consist primarily of taxes, insurance, and common area or other maintenance costs, which are paid based on actual costs incurred by the lessor. The Company has elected to utilize the available practical expedient to combine lease and non-lease components for building leases.

Quantitative information regarding the Company’s leases is as follows:

	Twelve Months Ended December 31, 2025		Twelve Months Ended December 31, 2024
Components of lease cost
Operating lease cost components:
Operating lease cost		2,126		1,944
Variable lease cost		949		684
Short-term lease cost		494		334
Sub-lease income		—		(511	)
Total operating lease costs		3,569		2,451
Total lease cost	$	3,569	$	2,451

Supplemental cash flow information related to leases is as follows for the years ended December 31, 2025 and 2024:

	2025			2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases	$	2,363		$	2,115

Lease liabilities arising from obtaining right-of-use assets	$	430		$	1,019
Weighted-average remaining lease term-operating leases (in years)		6.01			6.8
Weighted-average discount rate-operating leases		7.36	%		7.6	%

The future maturities of the Company’s operating leases as of December 31, 2025 are as follows:

2026	$	1,863
2027		1,990
2028		1,612
2029		1,616
2030		1,639
Thereafter		2,387
Total payments	$	11,107
Less amounts representing interest		(2,054	)
Total minimum payments required	$	9,053

Payments received by the Company for this sublease are comprised of two components, which include base rent and Common Area Maintenance (CAM) charges. While the base rent is fixed, the CAM charges are indexed directly to the Master Lease and are expected to be adjusted periodically as actual costs are incurred. However, the executed sublease agreement specifically itemizes these costs with a provision that informs the sublessee that the CAM charges will be adjusted (up or down) based on actual amounts once this information becomes known. As such, the nature of the charges is more closely representative of a fixed payment (an “in-substance fixed” charge) with the adjustments occurring simply to “true up” the listed CAM charges once actual charges from the head lessor become known. As sublessor, the Company has elected the practical expedient to not separate lease and nonlease components in disclosing future undiscounted cashflows and treats the combined components as a single lease component.

Contingencies (Details Narrative) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
Contingencies (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2025	Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]
Proceeds from Employee Retention Credit payment	$ 1,729
Employee Retention Credit interest received	272
Employee Retention Credit recognized	1,234	$ 1,234
Interest income	194	194
Employee Retention Credit reserve	$ 572	$ 572
Government Assistance, Income, Increase (Decrease), Statement of Income or Comprehensive Income [Extensible Enumeration]		Other income, net
Government Assistance, Liability, Current, Statement of Financial Position [Extensible Enumeration]		Accrued expenses

401(k) Profit-Sharing Plan

12 Months Ended

Dec. 31, 2025

Retirement Benefits [Abstract]

401(k) Profit-Sharing Plan

(11) 401(k) Profit-Sharing Plan

We have a 401(k) profit-sharing plan covering substantially all employees who meet defined service requirements. Contributions made in 2025 and 2024 aggregated to $259 and $206, respectively.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (o)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Topic 715
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-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480126/715-20-S99-2

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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/1943274/2147480794/715-70-50-1

Reference 7: http://www.xbrl.org/2003/role/exampleRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

+ Details

Accrued Expenses and Asset Retirement Obligations

12 Months Ended

Dec. 31, 2025

Payables and Accruals [Abstract]

Accrued Expenses and Asset Retirement Obligations

(7) Accrued Expenses and Asset Retirement Obligations

Accrued expenses consist of the following:


	As of December 31,
	2025		2024
Accrued payroll and related expenses	$	809	$	1,597
Accrued accounts payable		292		1,824
Other		1,778		1,428
Total	$	2,879	$	4,849

Asset Retirement Obligations:

The Company records asset retirement obligations (“AROs”) for legal obligations associated with the retirement of certain tangible long-lived assets. The Company’s AROs primarily relate to returning leased facilities back to acceptable condition per the lease.

For the year ended December 31, 2025, $46 in liabilities associated with AROs were incurred, $98 in liabilities were settled, and $8 in was recognized in accretion expense. For the year ended December 31, 2024, $8 in liabilities associated with AROs were incurred, no liabilities were settled, and $8 in was recognized in accretion expense.

For the years ended December 31, 2025, and 2024, there were no assets legally restricted for purposes of settling asset retirement obligations or revisions to estimated cash flows.

Additional disclosures for options granted for all years presented: (Details) - Share-Based Payment Arrangement, Option [Member]	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period (years) of shares granted in period	3 years	3 years
Contractual life (years) of shares granted in period	7 years	7 years
Estimated forfeitures	8.00%	8.00%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Significant Accounting Policies

12 Months Ended

Dec. 31, 2025

Accounting Policies [Abstract]

Significant Accounting Policies

(2) Significant Accounting Policies

Use of Estimates and Risks and Uncertainties

Cash

Trade Accounts Receivable, Net

	2025			2024
Balance, beginning	$	786		$	225
Current period provisions		836			564
Write offs		(816	)		(3	)
Balance, ending	$	806		$	786

Inventories, Net

Equipment and Leasehold Improvements

Long Lived Assets

Deferred Revenue

Financial Instruments

There were no financial instruments adjusted to fair value on December 31, 2025 and 2024.

Product Revenue

Contract balances for the years ended December 31, 2025, 2024, and 2023 are as follows:

	Accounts Receivable		Contract Liabilities
2023	$	3,692		2,353
2024		5,655		5,571
2025		7,642		930

Other Revenue

Research and Development Expenses

Research and development expenses are recognized as expense when incurred.

Income Taxes

Earnings Per Share

Earnings applicable to common stock and common stock shares used in the calculation of basic and diluted earnings per share are as follows:


	Years Ended December 31,
	2025		2024
Numerator: (in Thousands)
Net income	$	1,790	$	4,235

Denominator:
Weighted average number of basic common shares outstanding		70,344,152		62,350,459
Weighted average additional shares assuming conversion of in-the-money stock options to common shares		2,235,563		2,678,356
Weighted average number of diluted common shares outstanding		72,579,715		65,028,815

Basic earnings per common share:
Net income per share – basic	$	0.03	$	0.07
Diluted earnings per common share:
Net income per share – diluted	$	0.02	$	0.07

Recently Adopted Pronouncements

Recently Issued Pronouncements

Opinion on the Financial Statements

12 Months Ended

Dec. 31, 2025

Auditor [Line Items]

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Solesence, Inc. and its subsidiary (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations, stockholders’ equity and cash flows for the years then ended, and the related notes to the consolidated financial statements (collectively, the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Stock Options and Stock Grants (Tables)

12 Months Ended

Dec. 31, 2025

Share-Based Payment Arrangement [Abstract]

We follow ASC Topic 718, Share-Based Payments, in which compensation expense is recognized only for share-based payments expected to vest.


	Years ended December 31,
	2025		2024
Share-based compensation expense	$	575	$	725
Remaining unrecognized compensation expense		692		1,057
Remaining weighted average-period, expense recognition (years)		2.0		2.4
Tax effect	$	335		77

The following table illustrates the various assumptions used to calculate the Black-Scholes option pricing model for options granted for all years presented:

	Years Ended December 31,
	2025			2024
Weighted-average risk-free interest rates:		4.0	%		4.3	%

Dividend yield:		0	%		0	%

Weighted-average expected life (years) of the option:		4			4

Weighted-average expected stock price volatility:		91	%		91	%

Weighted-average fair value of the options granted:	$	2.20		$	1.74

Additional disclosures for options granted for all years presented:

	Years Ended December 31,
	2025			2024
Vesting period (years) of shares granted in period		3			3

Contractual life (years) of shares granted in period		7			7

Estimated forfeitures		8	%		8	%

The following table summarizes the option activity for our employees and directors during the year ended December 31, 2025:

						Weighted
				Weighted		Average		Aggregate
				Average		Remaining		Intrinsic
	Shares			Exercise Price		Contractual		Value
Options	(Rounded)			per Share		Term (Years)		(000s)
Outstanding on January 1, 2025		3,221,739		$	1.47		4.4	$	3,961

Granted		106,000		$	3.06
Exercised		(510,766	)	$	0.64
Forfeited or expired		(64,500	)	$	2.03

Outstanding on December 31, 2025		2,752,473		$	1.67		3.8	$	1,464
Exercisable on December 31, 2025		2,206,050		$	1.62		3.3	$	1,279

Shares available for grant		2,956,900

The aggregate intrinsic value in the table above is based on our closing stock price of $1.66 on the last business day for the year ended December 31, 2025

The aggregate intrinsic value in the table above is based on our closing stock price of $1.66 on the last business day for the year ended December 31, 2025.


	Years ended December 31,
	2025		2024
Shares exercised		510,766		455,995
Total intrinsic value	$	1,596	$	370
Cash received	$	323	$	239

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2025	Dec. 31, 2024
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized	24,088	24,088
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized	95,000,000	95,000,000
Common stock, outstanding	70,614,045	70,103,279
Common stock, issued	70,614,045	70,103,279

Contingencies

12 Months Ended

Dec. 31, 2025

Commitments and Contingencies Disclosure [Abstract]

Contingencies

(14) Contingencies

In June 2025, the Company received a payment of $1,729 from the U.S. Department of the Treasury under the Employee Retention Credit (ERC) program, along with $272 in interest related to the delayed payment. The ERC is a refundable payroll tax credit made available under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and subsequent legislation.

In prior periods, the Company concluded that recognition of the ERC as an asset and related income was not appropriate under U.S. GAAP because realization was not considered probable. Specifically, due to uncertainties regarding the timing, amount, and ultimate approval of the credit by the Internal Revenue Service (IRS), the ERC was evaluated as a gain contingency in accordance with ASC 450-30, Contingencies – Gain Contingencies.

In June of 2025, the contingency was resolved with the receipt of payment of $1,729 relating to the ERC amount and $272 of related interest. Given that the payments exceeded the amount the Company requested, the Company chose to recognize $1,234 of the ERC as identified, and $194 in related interest income, creating a reserve for $572, representing the discrepancy in ERC payment and estimated related interest. The $1,234 ERC amount was included in other income, net and $194 of interest income netted against interest expense within the condensed consolidated statements of operations for the year ended December 31, 2025. While management has no indication of a pending review, the IRS has stated that they reserve the right to audit ERC payments for several years after they were requested. The $572 is a liability contingent upon the window closing for ERC audits which we estimate will be in 2029 and is currently included in accrued expenses.

The approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets (before allocation of valuation allowances) is as follows: (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Approximate effect of deferred tax liabilities:
Excess tax depreciation	$ (420)	$ (496)
ASC 842 operating lease asset	(1,798)	(1,938)
Total approximate tax effect of deferred tax liabilities	(2,218)	(2,434)
Approximate effect of deferred tax assets:
Net operating loss carryforwards	9,266	10,218
163(j) Business interest limitation carryforwards	114
Inventory and other allowances	29	764
Excess book amortization		60
174 research and experimental expenditures	682	1,053
Share-based compensation	688	788
Tax credits	509	189
ASC 842 Operating Lease Liability	2,355	2,520
Other accrued costs	1,142	292
Total approximate tax effect of deferred tax assets	14,785	15,884
Less: valuation allowance	(12,567)	(13,450)
Total approximate tax effect on temporary differences

Related party interest expense consists of the following: (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Beachcorp, LLC [Member]
Line of Credit Facility [Line Items]
Related Party Transaction, Amounts of Transaction	$ 14,267	$ 4,000
Strandler, LLC [Member]
Line of Credit Facility [Line Items]
Related Party Transaction, Amounts of Transaction	1,000	1,000
Related Party [Member]
Line of Credit Facility [Line Items]
Interest expense	1,123	656
Accrued interest expense	$ 103	$ 36

- Definition

Amount of interest expense classified as operating and nonoperating. Includes, but is not limited to, cost of borrowing accounted for as interest expense.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 48
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-48

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 49
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-49

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 270
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
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+ Details

Equipment and Leasehold Improvements

12 Months Ended

Dec. 31, 2025

Property, Plant and Equipment [Abstract]

Equipment and Leasehold Improvements

(5) Equipment and Leasehold Improvements

	As of December 31,
	2025			2024
Machinery and equipment	$	30,541		$	23,551
Office equipment		285			1,014
Office furniture		1,014			126
Leasehold improvements		5,312			5,153
Construction in progress		880			5,706
		38,032			35,550
Less: Accumulated depreciation and amortization		(23,703	)		(22,816	)
	$	14,329		$	12,734

Depreciation expense was $888 and $918, for the years ended December 31, 2025 and 2024, respectively.