QUEST RESOURCE HOLDING CORP, 10-K filed on 3/13/2026
Annual Report
v3.25.4
Document and Entity Information - USD ($)
 12 Months Ended
Dec. 31, 2025
Mar. 02, 2026
Jun. 30, 2025
Cover [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 31, 2025    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
Trading Symbol QRHC    
Entity Registrant Name Quest Resource Holding Corporation    
Entity Central Index Key 0001442236    
Current Fiscal Year End Date --12-31    
Entity Filer Category Non-accelerated Filer    
Entity Shell Company false    
Entity Small Business true    
Document Financial Statement Error Correction [Flag] false    
Entity Emerging Growth Company false    
Entity Well-known Seasoned Issuer No    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Entity Common Stock, Shares Outstanding   20,959,751  
Entity Public Float     $ 20,761,804
Entity File Number 001-36451    
Entity Tax Identification Number 51-0665952    
Entity Address, Address Line One 433 E. Las Colinas Boulevard    
Entity Address, Address Line Two Suite 675    
Entity Address, City or Town Irving    
Entity Address, State or Province TX    
Entity Address, Postal Zip Code 75039    
City Area Code 972    
Local Phone Number 464-0004    
Entity Interactive Data Current Yes    
Title of 12(b) Security Common Stock, par value $.001 per share    
Entity Incorporation, State or Country Code NV    
Security Exchange Name NASDAQ    
Document Annual Report true    
Document Transition Report false    
ICFR Auditor Attestation Flag false    
Auditor Firm ID 178    
Auditor Name Semple, Marchal and Cooper, LLP    
Auditor Location Phoenix, Arizona    
Auditor Opinion [Text Block]

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of Quest Resource Holding Corporation (the “Company”) as of December 31, 2025 and 2024, the related consolidated statements of operations, changes in stockholders’ equity, and cash flows for the years then ended, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at 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.

    
v3.25.4
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 1,014 $ 396
Accounts receivable, less allowance for doubtful accounts of $780 and $831 as of December 31, 2025 and 2024, respectively 49,010 62,252
Prepaid expenses and other current assets 1,174 2,601
Assets held for sale   9,890
Total current assets 51,198 75,139
Goodwill 81,065 81,065
Intangible assets, net 7,650 12,946
Property and equipment, net, and other assets 5,638 6,495
Total assets 145,551 175,645
Current liabilities:    
Accounts payable and accrued liabilities 38,384 39,899
Other current liabilities 128 1,001
Current portion of notes payable 1,015 1,651
Liabilities held for sale   1,840
Total current liabilities 39,527 44,391
Notes payable, net 63,999 76,265
Other long-term liabilities 1,513 833
Total liabilities 105,039 121,489
Commitments and contingencies
Stockholders’ equity:    
Preferred stock, $0.001 par value, 10,000 shares authorized, no shares issued or outstanding as of December 31, 2025 and 2024
Common stock, $0.001 par value, 200,000 shares authorized, 20,960 and 20,606 shares issued and outstanding as of December 31, 2025 and 2024, respectively 21 21
Additional paid-in capital 180,984 179,246
Accumulated deficit (140,493) (125,111)
Total stockholders’ equity 40,512 54,156
Total liabilities and stockholders’ equity $ 145,551 $ 175,645
v3.25.4
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]      
Allowance for doubtful accounts receivable $ 780 $ 831 $ 1,582
Preferred stock, par value $ 0.001 $ 0.001  
Preferred stock, shares authorized 10,000,000 10,000,000  
Preferred stock, shares issued 0 0  
Preferred stock, shares outstanding 0 0  
Common stock, par value $ 0.001 $ 0.001  
Common stock, shares authorized 200,000,000 200,000,000  
Common stock, shares issued 20,959,751 20,606,395  
Common stock, shares outstanding 20,959,751 20,606,395  
v3.25.4
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Income Statement [Abstract]    
Revenue $ 250,217 $ 288,532
Cost of revenue 207,673 238,537
Gross profit 42,544 49,995
Operating expenses:    
Selling, general, and administrative 37,634 39,543
Depreciation and amortization 5,276 9,401
Loss on sale of assets, net 4,084  
Impairment loss 1,707 5,511
Total operating expenses 48,701 54,455
Operating loss (6,157) (4,460)
Interest expense (9,209) (10,312)
Loss before taxes (15,366) (14,772)
Income tax expense 16 291
Net loss $ (15,382) $ (15,063)
Net loss per share applicable to common shareholders    
Basic $ (0.73) $ (0.73)
Diluted $ (0.73) $ (0.73)
Weighted average number of common shares outstanding    
Basic 20,998 20,617
Diluted 20,998 20,617
v3.25.4
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Accumulated Deficit [Member]
Beginning Balance at Dec. 31, 2023 $ 66,281 $ 20 $ 176,309 $ (110,048)
Beginning Balance, Shares at Dec. 31, 2023   20,161,000    
Stock-based compensation 1,563   1,563  
Shares issued for Employee Stock Purchase Plan options $ 260   260  
Shares issued for Employee Stock Purchase Plan 43,150 43,000    
Stock option exercises $ 1,115 $ 1 1,114  
Stock option exercises, Shares   325,000    
Release of restricted and deferred stock units, shares   77,000    
Net loss (15,063)     (15,063)
Ending Balance at Dec. 31, 2024 54,156 $ 21 179,246 (125,111)
Ending Balance, Shares at Dec. 31, 2024   20,606,000    
Stock-based compensation 1,578   1,578  
Shares issued for Employee Stock Purchase Plan options $ 151   151  
Shares issued for Employee Stock Purchase Plan 97,418 97,000    
Stock option exercises $ 49   49  
Stock option exercises, Shares   38,000    
Tax withholdings related to net stock settlements, shares   (20,000)    
Tax withholdings related to net stock settlements (40)   (40)  
Release of restricted and deferred stock units, shares   239,000    
Net loss (15,382)     (15,382)
Ending Balance at Dec. 31, 2025 $ 40,512 $ 21 $ 180,984 $ (140,493)
Ending Balance, Shares at Dec. 31, 2025   20,960,000    
v3.25.4
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Cash flows from operating activities:    
Net loss $ (15,382) $ (15,063)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Depreciation 905 1,033
Amortization of intangibles 5,146 9,239
Amortization of debt issuance costs and discounts 782 1,077
Provision for doubtful accounts 1,029 1,913
Stock-based compensation 1,617 1,563
Loss on sale of assets, net 4,084  
Impairment loss 1,707 5,511
Changes in operating assets and liabilities:    
Accounts receivable 12,762 (9,754)
Prepaid expenses and other current assets 1,175 (459)
Security deposits and other assets 69 (58)
Accounts payable and accrued liabilities (3,465) 383
Other liabilities (872) (1,470)
Net cash provided by (used in) operating activities 9,557 (6,085)
Cash flows from investing activities:    
Purchase of property and equipment (251) (4,683)
Purchase of intangible assets (1,304) (1,287)
Proceeds from sale of assets 6,140  
Net cash provided by (used in) investing activities 4,585 (5,970)
Cash flows from financing activities:    
Proceeds from credit facilities 99,491 107,524
Repayments of credit facilities (106,961) (97,660)
Proceeds from long-term debt 390 2,873
Repayments of long-term debt (6,098) (1,303)
Debt issuance costs (506) (682)
Proceeds from stock option exercises 49 1,115
Tax payments for net share settlements (40)  
Proceeds from shares issued for Employee Stock Purchase Plan 151 260
Net cash provided by (used in) financing activities (13,524) 12,127
Net increase in cash and cash equivalents 618 72
Cash and cash equivalents at beginning of period 396 324
Cash and cash equivalents at end of period $ 1,014 $ 396
v3.25.4
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Pay vs Performance Disclosure    
Net Income (Loss) $ (15,382) $ (15,063)
v3.25.4
Award Timing Disclosure
 12 Months Ended
Dec. 31, 2025
Award Timing Disclosures [Line Items]  
Award Timing MNPI Disclosure

Neither our Board of Directors nor the Compensation Committee takes material nonpublic information into account when determining the timing or terms of equity awards, including with respect to options, nor do we time the disclosure of material nonpublic information for the purpose of affecting the value of executive compensation. Although we do not have a formal policy with respect to the timing of our equity award grants, we may grant such awards to directors and executive officers and equity awards may be granted at other times during the year to newly hired or promoted employees, and in other special circumstances. In the fiscal year ended December 31, 2025, we did not grant any stock options, stock appreciation rights, or similar option-like instruments.
Award Timing MNPI Considered false
MNPI Disclosure Timed for Compensation Value false
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.4
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management, Strategy, and Governance
 12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]

ITEM 1C. CYBERSECURITY

Risk Management and Strategy

We support a risk-based cybersecurity program with control alignment to the National Institute of Standards and Technology Cybersecurity Framework (“NIST CSF”). The core functions of the program are designed to manage cyber-related risks and strengthen the overall cybersecurity posture of our organization.

Annual external cybersecurity and compliance assessments are conducted for the identification, prioritization, and remediation of cyber-related risks to the company’s information systems and data. Ongoing internal risk assessments are conducted to ensure protective and detective security controls perform as expected.

Risk Mitigation

To mitigate identified cyber-related risks to our organization, we employ a multi-layered approach that has been integrated into our overall risk management systems and processes that includes:

•
Security Controls: We have implemented industry-standard security controls aligned with the NIST CSF framework such as identity and access control, multi-factor authentication, encryption, and data protection measures.
•
Security Awareness: We conduct regular cybersecurity awareness training to educate employees about potential threats and best practices for safeguarding company assets and data. In addition, we conduct periodic phishing tests to enhance our security awareness program.
•
Third-Party Oversight: We assess third-party service providers’ cybersecurity practices through due diligence assessments, contractual requirements, and risk-based oversight processes. Our third-party risk management program considers risks associated with third-party access to Company systems and data, including risks related to data exchange and system integrations. Cybersecurity risks are evaluated during the selection, onboarding, and oversight of third-party service providers, and security controls are implemented to support data protection.
•
Continuous Monitoring: We have partnered with a third party Managed Security Services Provider to provide event logging, monitoring for detection of cybersecurity events, and assistance with investigations into possible cyber-related events, as well as assessment and consultation on security enhancements.
•
Business Resiliency: We have developed emergency response, business continuity, and disaster recovery plans to respond to a widespread disruption to business operations.
•
Continuous Improvement: Any previous cybersecurity incidents, whether material or not, have resulted in improvements in the company’s cybersecurity program, policies, or technical controls, where applicable.

Cybersecurity threats, including those resulting from prior cybersecurity incidents, have not materially affected the Company’s business strategy, results of operations, or financial condition, and we do not believe such threats are reasonably likely to have a material impact in the future. The Company and its third-party service providers are subject to ongoing cybersecurity threats and incidents, and such threats are expected to continue. For an additional description of these cybersecurity risks and potential related impacts on us, see “Risk Factors - Cyberattacks and security vulnerabilities could lead to increased costs, liability claims, unauthorized access to customer data, or harm to our reputation” in Part I, Item 1A of this Annual Report on Form 10-K.

Governance

Cybersecurity is an important part of our risk management processes and an area of focus for our Board of Directors and management team. We have established a cybersecurity governance framework that encompasses policies, procedures, and controls designed to support cybersecurity risk management practices. Our Senior Information Systems Administrator is responsible for assessing and managing material risks from cybersecurity threats. This position reports directly to our Senior Vice President of Business Transformation. In addition, we have retained Virtual Chief Information Security Officer (CISO) services to support our cybersecurity risk management and governance practices. Such individuals have substantial prior work experience in various roles involving cybersecurity risk management and information technology, including security, compliance, systems and programming, and bring a wealth of expertise in their roles. These individuals are informed about, and monitor the prevention, mitigation, detection and remediation of cybersecurity incidents through their management of, and participation in, the cybersecurity risk management and strategy process described above, and report to our Managed Security Services Provider and our Board of Directors on any appropriate items. Our Board of Directors oversees the cybersecurity program and receives program metrics as well as information related to identified cyber-related risks when meeting with the company’s management.

While we continuously invest in cybersecurity controls, we acknowledge the possibility of cybersecurity incidents despite our efforts. These incidents may include unauthorized access, data breaches, ransomware attacks, and service disruptions. We have contracted with

a cyber insurance provider and a Managed Security Services Provider to minimize the impact of such events and support prompt detection, containment, and recovery measures.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] To mitigate identified cyber-related risks to our organization, we employ a multi-layered approach that has been integrated into our overall risk management systems and processes that includes
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]

Cybersecurity is an important part of our risk management processes and an area of focus for our Board of Directors and management team. We have established a cybersecurity governance framework that encompasses policies, procedures, and controls designed to support cybersecurity risk management practices. Our Senior Information Systems Administrator is responsible for assessing and managing material risks from cybersecurity threats. This position reports directly to our Senior Vice President of Business Transformation. In addition, we have retained Virtual Chief Information Security Officer (CISO) services to support our cybersecurity risk management and governance practices. Such individuals have substantial prior work experience in various roles involving cybersecurity risk management and information technology, including security, compliance, systems and programming, and bring a wealth of expertise in their roles. These individuals are informed about, and monitor the prevention, mitigation, detection and remediation of cybersecurity incidents through their management of, and participation in, the cybersecurity risk management and strategy process described above, and report to our Managed Security Services Provider and our Board of Directors on any appropriate items. Our Board of Directors oversees the cybersecurity program and receives program metrics as well as information related to identified cyber-related risks when meeting with the company’s management.

Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Our Senior Information Systems Administrator is responsible for assessing and managing material risks from cybersecurity threats.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] This position reports directly to our Senior Vice President of Business Transformation.
Cybersecurity Risk Role of Management [Text Block] we have retained Virtual Chief Information Security Officer (CISO) services to support our cybersecurity risk management and governance practices. Such individuals have substantial prior work experience in various roles involving cybersecurity risk management and information technology, including security, compliance, systems and programming, and bring a wealth of expertise in their roles. These individuals are informed about, and monitor the prevention, mitigation, detection and remediation of cybersecurity incidents through their management of, and participation in, the cybersecurity risk management and strategy process described above, and report to our Managed Security Services Provider and our Board of Directors on any appropriate items. Our Board of Directors oversees the cybersecurity program and receives program metrics as well as information related to identified cyber-related risks when meeting with the company’s management.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] These individuals are informed about, and monitor the prevention, mitigation, detection and remediation of cybersecurity incidents through their management of, and participation in, the cybersecurity risk management and strategy process described above, and report to our Managed Security Services Provider and our Board of Directors on any appropriate items.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Such individuals have substantial prior work experience in various roles involving cybersecurity risk management and information technology, including security, compliance, systems and programming, and bring a wealth of expertise in their roles.
v3.25.4
The Company and Description of Business
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
The Company and Description of Business

1. The Company and Description of Business

The accompanying consolidated financial statements include the accounts of Quest Resource Holding Corporation (“QRHC”), a Nevada corporation, and its subsidiaries, Quest Resource Management Group, LLC (“Quest”), Quest Equipment, LLC (“QE”), Youchange, Inc. (“Youchange”), Quest Vertigent Corporation (“QVC”), Quest Vertigent One, LLC (“QV One”), Quest Sustainability Services, Inc. (“QSS”) and Global Alerts, LLC (“Global Alerts”) (collectively, “we,” “us,” or “our company”).

We are a national provider of waste and recycling management services to customers from across multiple industry sectors that are typically larger, multi-location businesses. We create customer-specific programs and perform the related services for the collection, processing, recycling, disposal, and tracking of waste streams and recyclables to maximize resource utilization. Our programs and services also enable our customers to address their business sustainability and Environmental, Social and Governance goals and responsibilities, while also receiving optimized operation efficiencies and lower costs. In addition, we offer products such as antifreeze and windshield washer fluid, dumpster and compacting equipment, and other minor ancillary services.

Our principal office is located in Irving, Texas within the Dallas metroplex.
v3.25.4
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation

The consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The accompanying consolidated financial statements include the operating activity of QRHC and its subsidiaries for the years ended December 31, 2025 and 2024. All significant intercompany accounts and transactions have been eliminated in consolidation.

Accounting Estimates

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could materially differ from those estimates.

We use estimates when accounting for the carrying amounts of accounts receivable, goodwill and other intangible assets, deferred taxes, assets held for sale, and stock-based compensation expense, all of which are discussed in their respective notes to the consolidated financial statements.

Segment Information

Our chief operating decision maker (“CODM”), the President and Chief Executive Officer, manages the Company’s business activities as a single operating and reportable segment at the consolidated level. Accordingly, our CODM uses consolidated net income (loss) to measure segment profit or loss, allocate resources and assess performance. Further, the CODM reviews and utilizes functional expenses (cost of revenue, selling, general and administrative) at the consolidated level to manage our operations. Other segment items included in consolidated net income (loss) are interest expense and income tax expense, which are reflected in the consolidated statements of operations. For expenses incurred during the years ended December 31, 2025 and 2024, refer to our Consolidated Statements of Operations.

Revenue Recognition

We recognize revenue as services are performed or products are delivered. We recognize revenue net of any contracted pricing discounts or rebate arrangements. Revenue from our equipment leases, which are classified as operating leases, is based on a fixed amount and recognized over the term of the lease.

We generally recognize revenue for the gross amount of consideration received as we are generally the primary obligor (or principal) in our contracts with customers as we hold complete responsibility to the customer for contract fulfillment. In situations in which we are not primarily obligated nor do we have credit risk, we record the revenue net of certain cost amounts. We record amounts collected from customers for sales tax on a net basis.

Cash and Cash Equivalents

We consider all highly liquid instruments with a maturity of three months or less when purchased to be cash equivalents.

Accounts Receivable

Our receivables, which are recorded when services are performed or when services are billed in advance, are claims against third parties that will generally be settled in cash. The carrying value of our receivables, net of the allowance for doubtful accounts, represents the estimated net realizable value. We estimate our allowance for doubtful accounts based on consideration of a number of

factors, including the length of time trade accounts are past due, our previous loss history, the creditworthiness of individual customers, economic conditions affecting specific customer industries, and economic conditions in general. We write off past-due receivable balances after all reasonable collection efforts have been exhausted. We credit payments subsequently received on such receivables to the allowance for doubtful accounts in the period we receive the payment.

As of December 31, 2025 and 2024, we had established an allowance of $780 thousand and $831 thousand, respectively, for potentially uncollectible accounts receivable. We record delinquent finance charges on outstanding accounts receivable only if they are collected.

The changes in our allowance for doubtful accounts for the years ended December 31, 2025 and 2024, were as follows (in thousands):

 

 

 

Years ended December 31,

 

 

 

2025

 

 

2024

 

Beginning balance

 

$

831

 

 

$

1,582

 

Bad debt expense

 

 

1,029

 

 

 

1,913

 

Uncollectible accounts written off, net

 

 

(1,080

)

 

 

(949

)

Transfer to assets held for sale

 

 

—

 

 

 

(1,715

)

Ending balance

 

$

780

 

 

$

831

 

 

Fair Value Measurements

Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements, defines fair value as the price that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Topic 820 also specifies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value as follows:

Level 1: Quoted prices in active markets for identical assets or liabilities;

Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

Level 3: Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimate of assumptions that market participants would use in pricing the asset or liability.

Held for Sale

Assets and liabilities to be disposed of by sale (“disposal groups”) are reclassified into assets and liabilities held for sale on our consolidated balance sheets. The reclassification occurs when all the held for sale criteria have been met. Disposal groups are measured at the lower of carrying value or fair value less costs to sell. Assets held for sale are not depreciated or amortized. We assess the recoverability of disposal groups each reporting period they remain classified as held for sale. At December 31, 2024, we recognized an impairment charge to the carrying value of a disposal group deemed held for sale. The sale was completed in the first quarter of 2025. See Note 3, Sale of Assets for further discussion.

Property and Equipment

We record property and equipment at cost and depreciate the assets using the straight-line method over the estimated useful lives of the assets. We amortize leasehold improvements over the shorter of the estimated useful life or the remaining term of the related leases. We charge expenditures for repairs and maintenance to operations as incurred; we capitalize renewals and betterments when they extend the useful life of the asset. We record gains and losses on the disposition of property and equipment in the period incurred.

The useful lives of property and equipment for purposes of computing depreciation are as follows:

 

Computer equipment

3 to 5 years

Office furniture and fixtures

5 to 7 years

Machinery and equipment

5 to 20 years

Leasehold improvements

5 to 7 years

 

Impairment of Long-Lived Assets

We analyze long-lived assets, including property and equipment and finite-lived intangible assets, which are held and used in our operations, for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. We review the amortization method and estimated period of useful life at least at each balance sheet date. We record the effects of any revision to operations when the change arises. We recognize impairment when the estimated undiscounted cash flow generated by those assets is less than the carrying amounts of such assets. The amount of impairment is the excess of the carrying amount over the fair value of such assets. We recognized an impairment charge to the carrying value of our customer relationship intangible asset balance during the year ended December 31, 2025. See Note 5, Goodwill and Other Intangible Assets for further discussion.

Goodwill

We record as goodwill the excess of the consideration transferred over the fair value of the net identifiable assets acquired. We do not amortize goodwill; however, annually, or whenever there is an indication that goodwill may be impaired, we evaluate qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. Our test of goodwill impairment includes assessing qualitative factors and the use of judgment in evaluating economic conditions, industry and market conditions, cost factors, and entity-specific events, such as market capitalization as compared to our book value. We performed our 2025 annual goodwill impairment analysis in the second quarter of 2025 and no impairment was recorded.

Net Income (Loss) per Share

We compute basic net income (loss) per share using the weighted average number of shares of common stock outstanding plus the number of common stock equivalents for Deferred Stock Units (“DSUs”), during the period. We compute diluted net income (loss) per share using the weighted average number of shares of common stock outstanding during the period, adjusted for the dilutive effect of common stock equivalents. Dilutive potential common shares consist of the incremental common shares issuable upon the exercise of outstanding stock options and warrants. Dilutive potential securities are excluded from the computation of earnings per share if their effect is anti-dilutive. The dilutive effect of outstanding stock options and warrants is reflected in diluted earnings per share by application of the treasury stock method.

Concentrations

Financial instruments that potentially subject us to credit risk consist principally of cash, cash equivalents, and trade accounts receivable. We deposit our cash with commercial banks. Cash deposits at commercial banks are at risk to the extent that the balances exceed the Federal Deposit Insurance Corporation insured level per institution. The bank cash balances on deposit may periodically exceed federally insured limits; however, we have never experienced any losses related to these balances.

We sell our services and products primarily to customers without requiring collateral; however, we routinely assess the financial condition of our customers and maintain allowances for anticipated losses. From year to year, the customers that exceed 10% of our annual revenue, if any, may change. The following table discloses the number of customers that accounted for more than 10% of our annual revenue and the related receivable balances as of and for the years ended December 31, 2025 and 2024:

 

 

 

Customers Exceeding 10% of Revenue

 

Year

 

Number of
Customers

 

 

Percentage of
Revenue

 

 

Percentage of
Accounts Receivable

 

2025

 

 

1

 

 

 

23

%

 

 

21

%

2024

 

 

1

 

 

 

27

%

 

 

28

%

 

We believe we have no significant credit risk in excess of recorded reserves.

 

Leases

 

We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and current and long-term operating lease liabilities on our consolidated balance sheets. We currently do not have any material finance lease arrangements.

Operating lease ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate in effect at the commencement date of the lease in determining the present value of future payments.

When we have the option to extend the lease term, terminate the lease before the contractual expiration date, or purchase the leased asset, and if it is reasonably certain that we will exercise the option, we consider these options in determining the classification and measurement of the lease. Leases with a term of 12 months or less at lease inception are not recorded on the balance sheet.

Income Taxes

We recognize deferred tax assets and liabilities for the future tax consequences of temporary differences between the book and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. We establish valuation allowances to reduce a deferred tax asset to the amount expected to be realized. We assess our ability to realize deferred tax assets based on current earnings performance and on projections of future taxable income in the relevant tax jurisdictions. These projections do not include taxable income from the reversal of deferred tax liabilities and do not reflect a general growth assumption but do consider known or pending events, such as the passage of legislation. We review our estimates of future taxable income annually.

If we are required to pay interest on the underpayment of income taxes, we recognize interest expense in the first period the interest becomes due according to the provisions of the relevant tax law.

If we are subject to payment of penalties, we recognize an expense for the amount of the statutory penalty in the period when the position is taken on the income tax return. If we did not recognize the penalty in the period when the position was initially taken, we recognize the expense in the period when we change our judgment about meeting minimum statutory thresholds related to the initial position taken.

Advertising

We charge our advertising costs to expense when incurred. During the years ended December 31, 2025 and 2024, advertising expense totaled $69 thousand and $115 thousand, respectively.

Stock-Based Compensation

We measure all share-based payments, including grants of options to purchase common stock, the issuance of DSUs and restricted stock units (“RSUs”) to employees and non-employee directors, and the issuance of performance stock units (“PSUs”) to employees, using a fair value-based method, in accordance with ASC Topic 718, Stock Compensation. All share-based awards have been classified as equity instruments, and we recognize the vesting of the awards ratably over their respective terms. See Note 13, Stockholders’ Equity for a description of our share-based compensation plan and information related to awards granted under our incentive compensation plans.

We estimate the fair value of stock options using the Black-Scholes valuation model. Significant assumptions used in the calculation are as follows:

•
We determine the expected life based on a weighted average of historical grants taking into account the vesting period of awards, time until exercise and expiration dates;
•
We measure the expected volatility using the historical changes in the market price of our common stock;
•
We use the implied yield on zero-coupon U.S. Treasury bonds with a remaining maturity equal to the expected term of the awards to approximate the risk-free interest rate; and
•
We recognize the effects of forfeitures in compensation cost when they occur.

Deferred Stock Units

Non-employee directors can elect to receive all or a portion of their annual retainers in the form of DSUs. The DSUs are recognized at their fair value on the date of grant and are fully vested upon issuance. Director fees deferred into stock units are calculated and expensed each month by taking fees earned during the month and dividing by the closing price of our common stock on the last trading day of the month, rounded down to the nearest whole share. In addition, certain executive compensation expense is also granted in the form of DSUs. Each DSU represents the right to receive one share of our common stock following the completion of a grantee’s service.

Restricted Stock Units

Non-employee directors receive a portion of their annual board compensation in the form of RSUs. In addition, certain employee compensation is also granted in the form of RSUs. The RSUs are recognized at their fair value on the date of grant. Each RSU represents the right to receive one share of our common stock once fully vested. RSUs typically vest over a one to three-year period.

Performance Stock Units

Beginning in 2024, certain employees were granted PSUs under our incentive compensation plan. Performance criteria for PSU awards are determined at the time of the grant and are generally earned over a three-year period, at which time any earned shares would be fully vested. PSUs currently outstanding may vest in a range between 0% and 200%, depending on the terms of the award agreement. The PSUs are recognized at their fair value on the date of grant, and compensation expense is based on the probable issuance of units at the end of the performance period.

Business Combinations

Our business acquisitions are accounted for in accordance with ASC Topic 805, Business Combinations. In purchase accounting, identifiable assets acquired and liabilities assumed are recognized at their estimated fair values at the acquisition date, and any remaining purchase price is recorded as goodwill. In determining the fair values of assets acquired and liabilities assumed, we make significant estimates and assumptions, particularly with respect to long-lived tangible and intangible assets. Critical estimates used in valuing tangible and intangible assets include, but are not limited to, future expected cash flows, discount rates, market prices and asset lives.

Our consolidated financial statements include the results of operations from the date of such acquisition.

We expense all acquisition-related costs as incurred in selling, general and administrative expenses in the consolidated statements of operations.

Recent Accounting Pronouncements

Adopted

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires incremental disclosures related to reportable segments, including significant segment expense categories and amounts for each reportable segment. Entities with a single reportable segment are required to provide the new disclosures required under ASC 280. We adopted ASU 2023-07 during the year ended December 31, 2024 on a retrospective basis by including the additional required disclosures. Refer to Segment Information in this note for more information.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires entities to provide additional disclosure related to the transparency and decision usefulness of income tax disclosures, including additional disclosure around the rate reconciliation and income taxes paid. We adopted ASU 2023-09 during the year ended December 31, 2025 on a retrospective basis. This guidance is only related to disclosures and did not have a significant impact on our consolidated financial statements.

Pending Adoption

In November 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses (Subtopic 220-40). The ASU requires the disaggregated disclosure of specific expense categories, including employee compensation, depreciation, and amortization, within relevant income statement captions. This ASU also requires disclosure of the total amount of selling expenses along with the definition of selling expenses. The ASU is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Adoption of this ASU can either be applied prospectively to consolidated financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all prior periods presented in the consolidated financial statements. Early adoption is also permitted. This ASU will likely result in the required additional disclosures being included in our consolidated financial statements once adopted. We are currently evaluating the provisions of this ASU.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 306): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient that allows public entities to assume that current conditions as of the balance sheet date will remain unchanged for the remaining life of the asset when developing a reasonable and supportable forecast as part of estimating expected credit losses on these assets. The amendments are effective for fiscal years beginning after December 15, 2025. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

In September 2025, the FASB issued ASU No. 2025-06, Intangibles- Goodwill and Other- Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which modernizes guidance on accounting for costs related to internal-use software. This ASU removes references to software development project stages and applies a more principles-based

approach for capitalization. The ASU also clarifies related disclosure requirements. The ASU is effective for annual periods beginning after December 15, 2027, and interim periods within those fiscal years. Adoption of this ASU can be applied prospectively, retrospectively or using a modified transition approach. Early adoption is permitted. We are currently evaluating the provisions of this ASU, but we do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

There have been no other recent accounting pronouncements or changes in accounting pronouncements that have been issued but not yet adopted that are of significance, or potential significance, to us.
v3.25.4
Sale of Assets
 12 Months Ended
Dec. 31, 2024
Discontinued Operations and Disposal Groups [Abstract]  
Sale of Assets

3. Sale of Assets

On March 31, 2025, Quest entered into an asset purchase agreement (the “APA”) with Lincoln Waste Solutions, LLC, a Connecticut limited liability company (“Purchaser”), and completed the sale to Purchaser of substantially all of the assets used in Quest’s divested business operations as set forth in the APA (the “Transaction”). The Company sold the assets to divest an underperforming business operation. The selling price of the assets, which was classified as held for sale at December 31, 2024, was approximately $5.0 million in cash plus (i) additional amounts, not to exceed $6.5 million, based on the future performance of the contracts sold over the three years following the date of sale (collectively, the “Milestone Payments”) and (ii) a one-time payment based on the Purchaser’s ability to collect the accounts receivable and other monies due for sales and delivery of goods, performance of services and other business transactions, subject to certain other adjustments as set forth in the APA. The APA also includes clawback provisions, not to exceed $5.0 million, to be applied against the receipt of any future Milestone Payments if certain metrics were not met within the first four months of the date of sale. As of December 31, 2025, we do not believe that estimated contingent proceeds due to us, net of any amounts owed to the Purchaser, will have a material effect on our business, financial condition, results of operations, or cash flows.

In connection with the sale of the assets, we recognized a $4.4 million loss on sale of assets during the year ended December 31, 2025, based on the carrying value of sold assets classified as held for sale at December 31, 2024. Liabilities classified as held for sale at December 31, 2024 were not acquired by the Purchaser. When any Milestone Payments, net of clawback adjustments, become reasonably estimable for each applicable milestone year, we will adjust the purchase price. The cash proceeds received at the time of sale were used to repay a portion of our debt as further discussed in Note 7, Notes Payable.

The assets and liabilities related to the divestiture are classified as held for sale at December 31, 2024 in accordance with the guidance provided in ASC 360-10, Property, Plant, and Equipment. These assets and liabilities are presented separately on the consolidated balance sheets under the captions “assets held for sale” and “liabilities held for sale”, respectively, at December 31, 2024.

The following table summarizes the assets and liabilities classified as held for sale in the consolidated balance sheet (in thousands):

 

 

 

December 31, 2024

 

Assets held for sale

 

 

 

Accounts receivable, net

 

$

3,736

 

Equipment, net

 

 

1,289

 

Intangible assets, net

 

 

5,154

 

Goodwill

 

 

5,222

 

Valuation allowance on assets held for sale

 

 

(5,511

)

Total assets held for sale

 

$

9,890

 

Liabilities held for sale

 

 

 

Accounts Payable

 

$

251

 

Accrued Liabilities

 

 

1,589

 

Total liabilities held for sale

 

$

1,840

 

The intangible assets held for sale represent customer relationships, and goodwill represents the allocated portion of goodwill associated with the related operations for the divested business. The liabilities held for sale at December 31, 2024 were not acquired by the Purchaser at the time of sale.

In connection with the classification of the assets and liabilities as held for sale at December 31, 2024, we evaluated the fair value of assets outside the scope of ASC 360-10 (other than goodwill) for recoverability. We then evaluated the fair value of the disposal group, including goodwill, in accordance with the guidance in ASC 360-10 and ASC 350, Intangibles—Goodwill and Other. The fair value of the disposal group was determined using significant unobservable inputs (Level 3) based on expected proceeds to be received upon the sale of the business. As a result of this evaluation, it was determined that the fair value of the disposal group, less costs to sell, was less than its carrying value. Accordingly, we recognized an impairment of $5.5 million at December 31, 2024 which is reported in the consolidated statement of operations.

During the second half of 2025, we recognized a net gain on sale of approximately $276 thousand for the sale of certain compactors and related equipment, which primarily related to sale-leaseback transactions entered into with a third party. See Note 8, Leases for

additional discussion. We received cash proceeds of approximately $1.1 million from these sales and repaid approximately $0.9 million on the related equipment term loan, as further discussed in Note 7, Notes Payable.
v3.25.4
Property and Equipment, Net, and Other Assets
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net, and Other Assets

4. Property and Equipment, net, and Other Assets

At December 31, 2025 and 2024, Property and equipment, net, and other assets consisted of the following (in thousands):

 

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

Machinery and equipment

 

$

5,097

 

 

$

6,183

 

Office furniture and fixtures

 

 

417

 

 

 

592

 

Leasehold improvements

 

 

327

 

 

 

758

 

Computer equipment

 

 

489

 

 

 

466

 

    Property and equipment, gross

 

 

6,330

 

 

 

7,999

 

Accumulated depreciation

 

 

(3,447

)

 

 

(3,492

)

    Property and equipment, net

 

 

2,883

 

 

 

4,507

 

Right-of-use operating lease assets

 

 

2,112

 

 

 

1,305

 

Security deposits and other assets

 

 

643

 

 

 

683

 

    Property and equipment, net, and other assets

 

$

5,638

 

 

$

6,495

 

 

Depreciation expense for the year ended December 31, 2025 was $905 thousand, including $775 thousand of depreciation expense reflected within “Cost of revenue” in our consolidated statement of operations as it related to assets used directly in servicing customer contracts. Depreciation expense for the year ended December 31, 2024 was $1.0 million, including $871 thousand of depreciation expense reflected within “Cost of revenue” in our consolidated statement of operations.

Refer to Note 8, Leases for additional information on the Company’s right-of-use operating lease assets.
v3.25.4
Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets

5. Goodwill and Other Intangible Assets

Goodwill and other intangible assets are as follows (in thousands):

 

December 31, 2025

 

Estimated
Useful Life

 

Gross Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net

 

Finite lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

 

5 years

 

$

20,685

 

 

$

17,979

 

 

$

2,706

 

Software

 

7 years

 

 

5,740

 

 

 

1,586

 

 

 

4,154

 

Trademarks

 

7 years

 

 

2,026

 

 

 

1,236

 

 

 

790

 

Non-compete agreements

 

3 years

 

 

140

 

 

 

140

 

 

 

—

 

Total finite lived intangible assets

 

 

 

$

28,591

 

 

$

20,941

 

 

$

7,650

 

 

December 31, 2024

 

Estimated
Useful Life

 

Gross Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net

 

Finite lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

 

5 years

 

$

25,805

 

 

$

17,188

 

 

$

8,617

 

Software

 

7 years

 

 

5,518

 

 

 

2,271

 

 

 

3,247

 

Trademarks

 

7 years

 

 

2,026

 

 

 

947

 

 

 

1,079

 

Non-compete agreements

 

3 years

 

 

2,250

 

 

 

2,247

 

 

 

3

 

Total finite lived intangible assets

 

 

 

$

35,599

 

 

$

22,653

 

 

$

12,946

 

 

 

 

 

 

Carrying
Amount

 

Changes in goodwill:

 

 

 

 

 

Balance at December 31, 2023

 

 

 

$

85,828

 

RWS pre-acquisition adjustment

 

 

 

 

459

 

Reclassification to assets held for sale

 

 

 

 

(5,222

)

Balance at December 31, 2024 and 2025

 

 

 

$

81,065

 

We compute amortization using the straight-line method over the estimated useful lives of the finite lived intangible assets. The amortization expense related to finite lived intangible assets was approximately $5.1 million and $9.2 million for the years ended December 31, 2025 and 2024, respectively. We reclassified $5.2 million of customer relationships related to a disposal group to assets held for sale at December 31, 2024. See Note 3, Sale of Assets for further discussion.

 

 

We estimate future amortization expense as of December 31, 2025 to be approximately as follows (in thousands):

 

Year Ending December 31,

 

 

 

Amount

 

2026

 

 

 

$

3,718

 

2027

 

 

 

 

1,092

 

2028

 

 

 

 

986

 

2029

 

 

 

 

761

 

2030

 

 

 

 

686

 

Thereafter

 

 

 

 

407

 

Total

 

 

 

$

7,650

 

We have no indefinite-lived intangible assets other than goodwill. Approximately $66.1 million of the goodwill is not deductible for tax purposes, while $15.0 million of goodwill added in the prior years is deductible over its tax-basis life.

We review our finite-lived intangible assets periodically for indicators of impairment. During the first quarter of 2025, following certain customer activity, we evaluated the customer relationship intangible asset balance for recoverability and noted the unamortized balance of the intangible was not fully recoverable. Accordingly, we performed an impairment test for the intangible asset using a discounted cash flow analysis and internal forecasts (Level 3 inputs) to determine the fair value of the asset. The carrying value of the intangible asset exceeded its fair value, which resulted in an impairment charge of $1.7 million.

In the second quarter of 2025, we performed a qualitative assessment of factors to determine whether it was necessary to perform the goodwill impairment test. That assessment indicated a triggering event had occurred requiring that we perform additional quantitative assessments. The triggering event was primarily due to the decrease in the Company’s share price during the six months ended June 30, 2025, resulting in a decline in the Company’s market capitalization. Management engaged a third party to perform a series of quantitative assessments utilizing multiple valuation methods. The results of those assessments indicated that the Company’s fair value was in excess of the Company’s book value and, therefore, its goodwill was not impaired as of June 30, 2025.

We performed our annual goodwill impairment analysis in the third quarter of 2024 with no impairment recorded. During the fourth quarter of 2024, we reevaluated goodwill when management identified a disposal group designated as held for sale and assigned $5.2 million of goodwill to the disposal group (see Note 3, Sale of Assets). The remaining goodwill of $81.1 million was assessed at December 31, 2024 for impairment, and later at the time of closing for the sale of assets during the first quarter of 2025, and no impairment was recorded for either period.

In 2024, we recorded an addition to goodwill from the RWS acquisition. The adjustment resulted in a net increase of $0.5 million to both goodwill and accounts payable in 2024.

v3.25.4
Current Liabilities
 12 Months Ended
Dec. 31, 2025
Current Liabilities Disclosure [Abstract]  
Current Liabilities

6. Current Liabilities

The components of Accounts payable and accrued liabilities are as follows (in thousands):

 

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

Accounts payable

 

$

34,105

 

 

$

37,068

 

Accrued taxes

 

 

382

 

 

 

626

 

Employee compensation(1)

 

 

2,049

 

 

 

1,323

 

Operating lease liability - current portion

 

 

621

 

 

 

434

 

Accrued interest

 

 

532

 

 

 

20

 

Miscellaneous

 

 

695

 

 

 

428

 

 

 

$

38,384

 

 

$

39,899

 

(1) 2025 employee compensation includes accrued severance and retirement costs of approximately $0.8 million.

Refer to Note 8, Leases for additional disclosure related to the operating lease liability.
v3.25.4
Notes Payable
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Notes Payable

7. Notes Payable

Our debt obligations are as follows (in thousands):

 

 

 

 

 

As of December 31,

 

 

 

Interest Rate (1)

 

2025

 

 

2024

 

Monroe Term Loan (2)

 

11.49%

 

$

51,093

 

 

$

54,000

 

PNC ABL Facility (3)

 

5.94%

 

 

15,639

 

 

 

23,109

 

PNC Equipment Term Loan 1 (4)

 

6.72%

 

 

345

 

 

 

2,729

 

PNC Equipment Term Loan 2 (4)

 

6.72%

 

 

147

 

 

 

—

 

Green Remedies Promissory Note (5)

 

3.00%

 

 

—

 

 

 

564

 

Total notes payable

 

 

 

 

67,224

 

 

 

80,402

 

Less: Current portion of long-term debt

 

 

 

 

(1,015

)

 

 

(1,651

)

Less: Unamortized debt issuance costs

 

 

 

 

(2,210

)

 

 

(2,171

)

Less: Unamortized OID

 

 

 

 

—

 

 

 

(83

)

Less: Unamortized OID warrant

 

 

 

 

—

 

 

 

(232

)

Notes payable, net

 

 

 

$

63,999

 

 

$

76,265

 

 

 

 

 

 

 

 

 

 

(1) Interest rates as of December 31, 2025

 

 

 

 

 

 

(2) Bears interest based on SOFR plus Applicable Margin ranging from 5.5% to 7.5%

 

(3) Bears interest based on Term SOFR plus a margin of 2.25%

 

 

 

 

 

 

(4) Bears interest based on Term SOFR plus a margin of 3.0%

 

 

 

 

 

 

(5) Stated interest rate of 3.0%

 

 

 

 

 

 

The future minimum principal payments as of December 31, 2025 are as follows (in thousands):

 

Year Ending December 31,

 

Amount

 

2026

 

$

1,015

 

2027

 

 

557

 

2028

 

 

540

 

2029

 

 

16,179

 

2030

 

 

48,933

 

Total

 

$

67,224

 

We capitalize financing costs we incur related to implementing our debt arrangements. We record these debt issuance costs associated with our revolving credit facility and our term loan as a reduction of long-term debt, net and amortize them over the contractual life of the related debt arrangements. The table below summarizes changes in debt issuance costs (in thousands).

 

 

 

 

 

December 31,

 

 

 

 

 

2025

 

 

2024

 

Debt issuance costs

 

 

 

 

 

 

 

 

Beginning balance

 

 

 

$

2,171

 

 

$

1,345

 

Financing costs deferred

 

 

 

 

506

 

 

 

1,513

 

Less: Amortization expense

 

 

 

 

(467

)

 

 

(687

)

Debt issuance costs, net of accumulated amortization

 

 

 

$

2,210

 

 

$

2,171

 

PNC Credit Facility

On August 5, 2020, QRHC and certain of its subsidiaries entered into a Loan, Security and Guaranty Agreement (the “PNC Loan Agreement”), which was most recently amended on May 12, 2025, with BBVA USA (which was subsequently succeeded in interest by PNC Bank, National Association (“PNC”)), as a lender, and as administrative agent, collateral agent, and issuing bank, which provides for a credit facility (the “ABL Facility”) comprising an asset-based revolving credit facility in the maximum principal amount of $45.0 million with a sublimit for issuance of letters of credit of up to $3.5 million. The revolving credit facility bears interest, at the borrowers’ option, at either the Base Rate, plus a margin of 1.25% (no borrowings as of December 31, 2025), or the Term SOFR Rate for the interest period in effect plus a margin of 2.25% (5.94% as of December 31, 2025). The revolving credit facility matures on December 30, 2029.

As of December 31, 2025, we had a total of $492 thousand outstanding on two separate PNC senior secured equipment term loan facilities (“Equipment Term Loans”). Equipment Term Loan 1 bears interest, at the borrower’s option, at either the Base Rate, plus a margin of 2.0%, or the Term SOFR Rate for the interest period in effect plus a margin of 3.0% (6.72% at December 31, 2025). Equipment Term Loan 1 will amortize in equal quarterly installments of $144 thousand with any remaining balance payable on

December 30, 2029. Equipment Term Loan 2 bears interest, at the borrower’s option, at either the Base Rate, plus a margin of 2.0%, or the Term SOFR Rate for the interest period in effect plus a margin of 3.0% (6.72% at December 31, 2025). Equipment Term Loan 2 will amortize in equal quarterly installments of $32 thousand with any remaining balance payable on December 30, 2029. $0.9 million principal was repaid on the equipment term loans with proceeds from the sale of compactor and related equipment assets as further discussed in Note 3, Sale of Assets.

Certain of QRHC’s subsidiaries are the borrowers under the PNC Loan Agreement. QRHC and one of its subsidiaries are guarantors under the PNC Loan Agreement. As security for the obligations of the borrowers under the PNC Loan Agreement, (i) the borrowers under the PNC Loan Agreement have granted a first priority lien on substantially all of their tangible and intangible personal property, including a pledge of the capital stock and membership interests, as applicable, of certain of QRHC’s direct and indirect subsidiaries, and (ii) the guarantors under the PNC Loan Agreement have granted a first priority lien on the capital stock and membership interests, as applicable, of certain of QRHC’s direct and indirect subsidiaries.

The PNC Loan Agreement contains certain financial covenants, including a minimum fixed charge coverage ratio. In addition, the PNC Loan Agreement contains negative covenants limiting, among other things, additional indebtedness, transactions with affiliates, additional liens, sales of assets, dividends, investments and advances, prepayments of debt, mergers and acquisitions, and other matters customarily restricted in such agreements. The PNC Loan Agreement also contains customary events of default, including payment defaults, breaches of representations and warranties, covenant defaults, events of bankruptcy and insolvency, change of control, and failure of any guaranty or security document supporting the PNC Loan Agreement to be in full force and effect. Upon the occurrence of an event of default, the outstanding obligations under the PNC Loan Agreement may be accelerated and become immediately due and payable.

As of December 31, 2025, the ABL Facility borrowing base availability was $37.7 million, of which $15.6 million principal was outstanding. In the first quarter of 2025, we repaid $1.5 million of the outstanding principal balance on the ABL Facility with proceeds from the sale of assets as further discussed in Note 3, Sale of Assets.

Monroe Term Loan

On October 19, 2020, QRHC and certain of its subsidiaries entered into a Credit Agreement (the “Credit Agreement”), dated as of October 19, 2020, which was most recently amended on May 12, 2025, with Monroe Capital Management Advisors, LLC (“Monroe Capital”), as administrative agent for the lenders thereto. Among other things, the Credit Agreement provides for the following:

•
A senior secured term loan facility with an outstanding principal amount of $51.1 million as of December 31, 2025. The senior secured term loan accrues interest at the SOFR Rate for SOFR Loans plus the Applicable Margin; provided, that if the provision of SOFR Loans becomes unlawful or unavailable, then interest will be payable at a rate per annum equal to the Base Rate from time to time in effect plus the Applicable Margin for Base Rate Loans. The maturity date of the term loan facility is June 28, 2030 (the “Maturity Date”). The senior secured term loan will amortize in aggregate annual amounts equal to 1.00% of the original principal amount of the senior secured term loan facility with the balance payable on the Maturity Date. We repaid $2.5 million of the outstanding principal balance of the term loan facility with proceeds from the sale of assets as further discussed in Note 3, Sale of Assets.
•
A delayed draw term loan facility in the maximum principal amount of $25.0 million. Loans under the delayed draw term loan facility may be requested at any time until December 30, 2026. Proceeds of the delayed draw term loan are permitted to be used for Permitted Acquisitions. There were no borrowings on this facility at December 31, 2025.

Certain of QRHC’s subsidiaries are the borrowers under the Credit Agreement. QRHC is the guarantor under the Credit Agreement. As security for the obligations of the borrowers under the Credit Agreement, (i) the borrowers under the Credit Agreement have granted a first priority lien on substantially all of their tangible and intangible personal property, including a pledge of the capital stock and membership interests, as applicable, of certain of QRHC’s direct and indirect subsidiaries, and (ii) the guarantors under the Credit Agreement have granted a first priority lien on the capital stock and membership interests, as applicable, of QRHC’s direct and indirect subsidiaries.

The Credit Agreement contains certain financial covenants, including a minimum fixed charge coverage ratio and a senior net leverage ratio. In addition, the Credit Agreement contains negative covenants limiting, among other things, additional indebtedness, transactions with affiliates, additional liens, sales of assets, dividends, investments and advances, prepayments of debt, mergers and acquisitions, and other matters customarily restricted in such agreements. The Credit Agreement also contains customary events of default, including payment defaults, breaches of representations and warranties, covenant defaults, events of bankruptcy and insolvency, change of control, and failure of any guaranty or security document supporting the Credit Agreement to be in full force and effect. Upon the occurrence of an event of default, the outstanding obligations under the Credit Agreement may be accelerated and become immediately due and payable.

At the same time as the borrowing of the initial $11.5 million under the Credit Agreement in October 2020, in a separate agreement, we issued Monroe Capital a warrant to purchase 500,000 shares of QRHC’s common stock exercisable immediately. For the delayed draw term loan facility, we issued a separate warrant to purchase 350,000 shares upon drawing on this facility on October 19, 2021. Both warrants have an exercise price of $1.50 per share and an expiration date of March 19, 2028. We estimated the grant-date fair

value of the warrants issued using the Black Scholes option pricing model and recorded a debt discount of approximately $766 thousand in 2020 for the 500,000-share warrant and $536 thousand in 2021 for the 350,000-share warrant which was amortized over the term of the Credit Agreement. We also executed a letter agreement that provides that the warrant holder will receive minimum net proceeds of $1 million less any net proceeds received from the sale of the warrant shares, which is conditional on the full exercise and sale of all the warrant shares at the same time.

Green Remedies Promissory Note

On October 19, 2020, we issued an unsecured subordinated promissory note to the seller of Green Remedies in the aggregate principal amount of $2.7 million, payable commencing on January 1, 2021 in quarterly installments through October 1, 2025 and subject to an interest rate of 3.0% per annum. This promissory note was fully repaid in 2025.

Interest Expense

The amount of interest expense related to borrowings for the years ended December 31, 2025 and 2024 was $7.6 million and $8.1 million, respectively. Interest expense related to amortization of debt issuance fees, debt discount costs and interest related to vendor supply chain financing programs was $1.6 million and $2.2 million for the years ended December 31, 2025 and 2024, respectively.

Refer to Note 16, Subsequent Events for additional information on the Company’s subsequent refinancing of the certain notes payable.
v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Lessee Disclosure [Abstract]  
Leases

8. Leases

Our leases are primarily related to office space and certain equipment. The leases are classified as operating leases, for which we recorded a right of use asset. Our primary leases include:

•
Former primary headquarters in The Colony, Texas. We recorded a right of use asset associated with this lease, which was modified in 2022, of approximately $1.6 million. We used an effective interest rate of 4.56%, which was our incremental borrowing rate in effect at the date of the lease amendment as the lease does not provide a readily determinable implicit rate. In January 2026, we entered into a sublease agreement for this office space. The sublease agreement is effective through December 31, 2027, at which time our lease for the space will terminate.
•
Chadds Ford, PA office. We recorded a right of use asset associated with this lease, which was modified in 2022, of approximately $749 thousand. The lease expires in October 2026. We used an effective interest rate of 7.5%, which was our incremental borrowing rate in effect at the acquisition date of RWS as the lease does not provide a readily determinable implicit rate. This lease may be terminated under certain conditions as defined in the lease agreement.
•
Equipment leases. During the year ended December 31, 2025, we entered into sale-leaseback agreements with a third party for certain compactors and related equipment owned by us. The equipment leases are classified as operating leases, with lease terms of 5 years. We recorded right of use assets associated with these equipment leases of $1.3 million. We used effective interest rates ranging from 6.72% to 7.32%, using the incremental borrowing rate at the inception of each lease agreement as the agreements do not provide a readily determinable implicit rate.

The weighted average remaining life of our operating leases is 3.6 years and 2.8 years as of December 31, 2025 and 2024, respectively. The weighted average discount rate for our operating leases is 6.2% and 5.1% at December 31, 2025 and 2024, respectively.

The future minimum lease payments required under our operating leases as of December 31, 2025 are as follows (in thousands):

 

Year Ending December 31,

 

Amount

 

2026

 

$

809

 

2027

 

 

712

 

2028

 

 

325

 

2029

 

 

325

 

2030

 

 

245

 

Total lease payments

 

 

2,416

 

Less: Interest

 

 

(282

)

Present value of lease payments

 

$

2,134

 

 

Balance Sheet Classification

The table below presents the lease related assets and liabilities recorded on the balance sheet (in thousands).

 

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

Operating Leases

 

 

 

 

 

 

Right-of-use operating lease assets:

 

 

 

 

 

 

Property and equipment, net and other assets

 

$

2,112

 

 

$

1,305

 

 

 

 

 

 

 

 

Lease liabilities:

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

621

 

 

$

434

 

Other long-term liabilities

 

 

1,513

 

 

 

833

 

       Total operating lease liabilities

 

$

2,134

 

 

$

1,267

 

Lease Costs

For the years ended December 31, 2025 and 2024, we recorded $689 thousand and $811 thousand, respectively, of fixed cost operating lease expense.

Cash paid for operating leases approximated operating lease expense and non-cash right of use asset amortization for the years ended December 31, 2025 and 2024.
v3.25.4
Revenue
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue

9. Revenue

Operating Revenues

We provide businesses with services to reuse, recycle, and dispose of a wide variety of waste streams and recyclables generated by their operations. Our service revenue is primarily generated from fees charged for the collection, transfer, disposal and recycling services and from sales of commodities by our recycling operations. We also rent dumpster and compacting equipment to customers and include those fees in service revenue. In addition, we have product sales and other revenue primarily from sales of products such as antifreeze and windshield washer fluid, and other minor ancillary services.

Revenue Recognition

We recognize revenue net of any contracted pricing discounts or rebate arrangements. Revenue from equipment rentals is based on a fixed amount and recognized over the life of the lease.

We generally recognize revenue for the gross amount of consideration received when we hold complete responsibility to the customer for contract fulfillment, making us the primary obligor (or principal). Depending on the key terms of the arrangement, which may include situations in which we are not primarily obligated or we do not have credit risk, we may record the revenue net of certain cost amounts. We had certain management fee contracts accounted for under the net basis method with net revenue of $311 thousand and $455 thousand for the years ended December 31, 2025 and 2024, respectively. We record amounts collected from customers for sales tax on a net basis.

Disaggregation of Revenue

The following table presents our revenue disaggregated by source. We operate primarily in the United States, with minor services in Canada.

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Revenue Type:

 

 

 

 

 

 

Services

 

$

237,585

 

 

$

277,257

 

Product sales and other

 

 

12,632

 

 

 

11,275

 

   Total revenue

 

$

250,217

 

 

$

288,532

 

 

Deferred Revenue

We bill certain customers one month in advance, and, accordingly, we defer recognition of related revenues as a contract liability until the services are provided and control is transferred to the customer. As of December 31, 2025 and 2024, we had $128 thousand and $1.0 million, respectively, of deferred revenue, which was classified in “Other current liabilities.”
v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

10. Income Taxes

We compute income taxes using the asset and liability method in accordance with FASB ASC Topic 740, Income Taxes. Under the asset and liability method, we determine deferred income tax assets and liabilities based on the differences between the financial reporting and tax bases of assets and liabilities and measure those using currently enacted tax rates and laws. We provide a valuation allowance for the amount of deferred tax assets that, based on available evidence, are more likely than not to be realized. Realization of our net operating loss carryforward was not reasonably assured as of December 31, 2025 and 2024, and we have recorded a valuation allowance of $25.3 million and $21.4 million, respectively, against deferred tax assets in excess of deferred tax liabilities in the accompanying consolidated financial statements.

The components of net deferred taxes are as follows (in thousands):

 

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

Deferred tax assets (liabilities):

 

 

 

 

 

 

Net operating loss

 

$

3,333

 

 

$

1,258

 

Depreciation and amortization

 

 

8,821

 

 

 

9,271

 

Stock-based compensation

 

 

4,621

 

 

 

4,637

 

Interest expense

 

 

8,153

 

 

 

6,005

 

Capitalized software costs

 

 

180

 

 

 

(21

)

Bonus accrual

 

 

(46

)

 

 

131

 

Allowance for doubtful accounts

 

 

205

 

 

 

218

 

Other

 

 

82

 

 

 

(98

)

Total deferred tax assets, net

 

 

25,349

 

 

 

21,401

 

Less: valuation allowance

 

 

(25,349

)

 

 

(21,401

)

Net deferred taxes

 

$

—

 

 

$

—

 

 

Our statutory income tax rate is expected to be approximately 26%. We had income tax expense of $16 thousand and $291 thousand for the years ended December 31, 2025 and 2024, respectively, which is attributable to state obligations for states with no net operating loss carryforwards, the continued reserve against the benefit of the net operating losses at the federal level, and other timing differences. The provision for income taxes consisted of the following (in thousands):

 

 

 

 

 

 

 

Years Ended December 31,

 

 

 

 

 

 

 

2025

 

 

2024

 

Current

 

 

 

 

 

$

16

 

 

$

291

 

Deferred

 

 

 

 

 

 

—

 

 

 

—

 

Total

 

 

 

 

 

$

16

 

 

$

291

 

 

The reconciliation between the income tax expense calculated by applying statutory rates to net loss and the income tax expense reported in the accompanying consolidated financial statements is as follows (in thousands):

 

 

 

Years Ended December 31,

 

 

 

2025

 

 

2024

 

 

 

Tax Expense

 

 

Rate

 

 

Tax Expense

 

 

Rate

 

U.S. federal statutory rate applied to pretax loss

 

$

(3,227

)

 

 

21.0

%

 

$

(3,102

)

 

 

21.0

%

State taxes - current, net of federal benefit

 

 

13

 

 

 

(0.1

)%

 

 

291

 

 

 

(2.0

)%

State taxes - deferred

 

 

(802

)

 

 

5.2

%

 

 

(808

)

 

 

5.5

%

Permanent differences

 

 

47

 

 

 

(0.3

)%

 

 

(171

)

 

 

1.2

%

Change in state tax rates

 

 

20

 

 

 

(0.1

)%

 

 

30

 

 

 

(0.2

)%

Other

 

 

17

 

 

 

(0.1

)%

 

 

63

 

 

 

(0.4

)%

Change in valuation allowance

 

 

3,948

 

 

 

(25.7

)%

 

 

3,988

 

 

 

(27.0

)%

Total

 

$

16

 

 

 

(0.1

)%

 

$

291

 

 

 

(1.9

)%

 

The Company’s state income tax expense for the year ended December 31, 2025 primarily relates to operations in Texas, which represent more than 50% of the total state tax expense recognized for the period.

 

As of December 31, 2025 and 2024, we had federal income tax net operating loss carryforwards of approximately $12.6 million and $4.8 million, respectively. $8.3 million of the 2025 net operating loss carryforwards can be carried forward indefinitely, and the remaining balance primarily expires at various dates ranging from 2036 through 2037. We are subject to limitations existing under

Internal Revenue Code Section 382 (Change of Control) relating to the availability of the operating loss; therefore, utilization of a portion of the Company's net operating loss may be limited in future years.

As of December 31, 2025 and 2024, we did not recognize any assets or liabilities relative to uncertain tax positions, nor do we anticipate any significant unrecognized tax benefits will be recorded during 2026. It is our policy to classify interest and penalties on income taxes as interest expense or penalties expense, should any be incurred.

Tax positions are positions taken in a previously filed tax return or positions expected to be taken in a future tax return that are reflected in measuring current or deferred income tax assets and liabilities reported in the financial statements. Tax positions include the following:

•
an allocation or shift of income between taxing jurisdictions;
•
the characterization of income or a decision to exclude reportable taxable income in a tax return; or
•
a decision to classify a transaction, entity, or other position in a tax return as tax exempt.
We are potentially subject to tax audits for federal and state tax returns for tax years ended 2021 to 2025. Tax audits by their very nature are often complex and can require several years to complete.
v3.25.4
Fair Value of Financial Instruments
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments

11. Fair Value of Financial Instruments

Our financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, deferred revenue and notes payable. We do not believe that we are exposed to significant currency or credit risks arising from these financial instruments. Our variable rate indebtedness subjects us to interest rate risk as all of the borrowings under the senior secured credit facilities bear interest at variable rates. The fair values of our financial instruments approximate their carrying values, based on their short maturities or, for notes payable, based on borrowing rates currently available to us for loans with similar terms and maturities.

v3.25.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

12. Commitments and Contingencies

Claims and Indemnifications

During the normal course of business, we make certain indemnities and commitments under which we may be required to make payments in relation to certain transactions. These may include (i) intellectual property indemnities to customers in connection with the use, sales, and/or license of products and services; (ii) indemnities to customers in connection with losses incurred while performing services on their premises; (iii) indemnities to vendors and service providers pertaining to claims based on negligence or willful misconduct; and (iv) indemnities involving the representations and warranties in certain contracts. In addition, under our bylaws we are committed to our directors and officers for providing for payments upon the occurrence of certain prescribed events. The majority of these indemnities and commitments do not provide for any limitation on the maximum potential for future payments that we could be obligated to make. In addition, we may be named defendants in various claims and lawsuits for alleged damages to persons and property and alleged liabilities occurring during the ordinary operation of a waste management business. We have not incurred costs to defend lawsuits or settle claims related to indemnification agreements. We believe the estimated fair value of these claims or agreements is minimal. Accordingly, we had no liabilities recorded for these agreements as of December 31, 2025 and 2024.

Medical Self-Insured Losses

Beginning in 2024, we offered employee health benefits via a partially self-insured medical benefit plan. We contracted with a third-party administrator for medical claims and benefit processing, and participant claims exceeding certain limits were covered by a stop-loss insurance policy. In June 2025, the Company terminated its self-insured medical plan and enrolled in a fully-insured medical plan. Estimated health claims incurred but not reported under the self-insured plan are deemed insignificant as of December 31, 2025.

Defined Contribution Plan

We maintain a defined contribution 401(k) plan covering substantially all full-time employees. Employees are permitted to make voluntary contributions, which we match at a certain percentage, to the plan. For the years ended December 31, 2025 and 2024, our plan contribution expense was $485 thousand and $373 thousand, respectively.
v3.25.4
Stockholders' Equity
 12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Stockholders' Equity

13. Stockholders’ Equity

Preferred Stock

Our authorized preferred stock consists of 10,000,000 shares of preferred stock with a par value of $0.001, of which no shares have been issued or were outstanding as of December 31, 2025 and 2024. Preferred stock is to be designated in classes or series and the number of each class or series and the voting powers, designations, preferences, limitations, restrictions, relative rights, and distinguishing designation of each class or series of stock as the Board of Directors shall determine in its sole discretion.

Common Stock

Our authorized common stock consists of 200,000,000 shares of common stock with a par value of $0.001, of which 20,959,751 and 20,606,395 shares were issued and outstanding as of December 31, 2025 and 2024, respectively.

Employee Stock Purchase Plan

On September 17, 2014, our stockholders approved our 2014 Employee Stock Purchase Plan (“2014 ESPP”). On July 8, 2024, our stockholders approved the adoption of our 2024 Employee Stock Purchase Plan (“2024 ESPP”), which became effective on November 15, 2024 and replaced the 2014 ESPP for all future purchases. We recorded expense of $106 thousand related to the 2024 ESPP and $87 thousand related to the 2014 ESPP during the years ended December 31, 2025 and 2024, respectively. As of December 31, 2025, the remaining number of shares of common stock available for grant under the 2024 ESPP is 152,582.

During the year ended December 31, 2025, we issued an aggregate 97,418 shares of common stock for an aggregate exercise price of $151 thousand to employees under our 2024 ESPP, as follows:

•
On May 14, 2025, we issued 45,261 shares for $78 thousand.
•
On November 14, 2025, we issued 52,157 shares for $73 thousand.

During the year ended December 31, 2024, we issued an aggregate 43,150 shares of common stock for an aggregate exercise price of $260 thousand to employees under our 2014 ESPP, as follows:

•
On May 14, 2024, we issued 24,763 shares for $150 thousand.
•
On November 14, 2024, we issued 18,387 shares for $110 thousand.

Warrants

The following table summarizes the warrants issued and outstanding as of December 31, 2025 and 2024:

 

Warrants Issued and Outstanding as of December 31, 2025

 

 

 

Date of

 

Exercise

 

 

Shares of

 

Description

 

Issuance

 

Expiration

 

Price

 

 

Common Stock

 

Exercisable warrants

 

10/19/2020

 

3/19/2028

 

$

1.50

 

 

 

500,000

 

Exercisable warrants

 

10/19/2021

 

3/19/2028

 

$

1.50

 

 

 

350,000

 

Total warrants issued and outstanding

 

 

 

 

 

850,000

 

No warrants were issued, exercised or expired during the years ended December 31, 2025 and 2024.

Incentive Compensation Plan

On July 8, 2024, our stockholders approved the adoption of our 2024 Incentive Compensation Plan (the “2024 Plan”), which replaced the 2012 Incentive Compensation Plan, adopted in October 2012, for all future grants. Awards previously granted under the 2012 Plan are unaffected by the adoption of the 2024 Plan and remain outstanding under the terms pursuant to which they were granted. The 2024 Plan allows for the grant of stock options (both nonqualified stock options and incentive stock options), stock appreciation rights, restricted stock, deferred stock units, restricted stock units, bonus stock, dividend equivalents, other stock-based awards, and performance awards that may be settled in cash, stock, or other property in our sole discretion. The purpose of our 2024 Plan is to assist us and our Designated Subsidiaries (as such term is defined in the 2024 Plan) in attracting, motivating, retaining, and rewarding high-quality executives and other employees, officers, non-employee directors, and individual consultants who provide services to us or our Designated Subsidiaries, by enabling such persons to acquire or increase a proprietary interest in our company in order to strengthen the mutuality of interests between such persons and our stockholders, and providing such persons with performance incentives to expend their maximum efforts in the creation of stockholder value. The 2024 Plan is administered by the compensation committee of the board of directors. Our policy is to fulfill any exercise of options from common stock that is authorized and unissued. The maximum number of shares of common stock available for grant under the 2024 Plan is 1,500,000, of which 519,618 shares remain available for grant as of December 31, 2025.

Stock Options

The following table summarizes the stock option activity from January 1, 2024 through December 31, 2025:

 

 

Stock Options

 

 

 

 

 

 

 

 

Weighted-

 

 

 

 

 

 

Exercise

 

Average

 

 

 

Number

 

 

Price Per

 

Exercise Price

 

 

 

of Shares

 

 

Share

 

Per Share

 

Outstanding at January 1, 2024

 

 

2,869,013

 

 

$1.17 — $23.20

 

$

3.33

 

Granted

 

 

15,000

 

 

$6.98  — $7.63

 

$

7.41

 

Exercised

 

 

(324,736

)

 

$1.48  — $6.40

 

$

3.43

 

Canceled/Forfeited

 

 

(47,828

)

 

$1.83 — $23.20

 

$

6.95

 

Outstanding at December 31, 2024

 

 

2,511,449

 

 

$1.17 — $10.32

 

$

3.28

 

Exercised

 

 

(37,500

)

 

$1.17  — $1.65

 

$

1.30

 

Canceled/Forfeited

 

 

(162,677

)

 

$1.51 — $10.32

 

$

5.03

 

Outstanding at December 31, 2025

 

 

2,311,272

 

 

$1.35  — $8.68

 

$

3.18

 

 

There were no employee stock options granted during the year ended December 31, 2025. The weighted-average grant-date fair value of options granted during the year ended December 31, 2024 was $4.43.

For the years ended December 31, 2025 and 2024, the intrinsic value of options outstanding was $238 thousand and $8.2 million, respectively, and the intrinsic value of options exercisable was $238 thousand and $8.1 million, respectively.

The following additional information applies to options outstanding at December 31, 2025:

 

 

Weighted-Average Remaining Contractual Life

 

 

2.3

 

Options Exercisable at December 31, 2025

 

 

2,284,606

 

Weighted-Average Exercise Price of Options Exercisable

 

$ 3.14

 

 

The following additional information applies to options outstanding at December 31, 2024:

Weighted-Average Remaining Contractual Life

 

 

4.5

 

Options Exercisable at December 31, 2024

 

 

2,329,985

 

Weighted-Average Exercise Price of Options Exercisable

 

$ 3.07

 

 

Stock option expense was $258 thousand and $516 thousand for the years ended December 31, 2025 and 2024, respectively. At December 31, 2025, the balance of unearned stock option compensation to be expensed in future periods related to unvested option awards was approximately $81 thousand. The weighted-average period over which the unearned stock-based compensation is expected to be recognized is approximately 1.45 years.

We account for all stock-based payment awards made to employees and non-employee directors, including stock options and employee stock purchases, based on estimated fair values. We estimate the fair value of share-based payment awards on the date of grant using an option-pricing model, and the value of the portion of the award is recognized as expense over the requisite service period. We recognize the effects of forfeitures in compensation cost when they occur.

We use the Black-Scholes option-pricing model as our method of valuation. The fair value is amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. The fair value of share-based payment awards on the date of grant, as determined by the Black-Scholes model, is affected by our stock price as well as other assumptions. These assumptions include the expected stock price volatility over the term of the awards, and the actual and projected employee stock option exercise behaviors.

There were no employee stock options granted during the year ended December 31, 2025. The weighted-average estimated value of employee stock options granted during the year ended December 31, 2024 was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions:

 

 

Years Ended December 31,

 

 

 

2025

 

 

2024

 

Expected volatility

 

 

—

 

 

 

62

%

Risk-free interest rate

 

 

—

 

 

 

4.00

%

Expected dividends

 

 

—

 

 

 

0.00

%

Expected term in years

 

 

—

 

 

 

5.9

 

 

Deferred Stock Units

The following table summarizes DSU activity from January 1, 2024 through December 31, 2025:

 

 

 

Deferred Stock Units

 

 

 

 

 

 

Weighted-

 

 

 

 

 

 

Average

 

 

 

Number

 

 

Grant Date

 

 

 

of Units

 

 

Fair Value

 

Outstanding at January 1, 2024

 

 

231,635

 

 

$

4.18

 

Granted

 

 

35,519

 

 

$

8.45

 

Less: Released

 

 

(16,053

)

 

$

4.38

 

Outstanding at December 31, 2024

 

 

251,101

 

 

$

4.77

 

Granted

 

 

76,016

 

 

$

2.20

 

Less: Released

 

 

(112,677

)

 

$

4.16

 

Outstanding at December 31, 2025

 

 

214,440

 

 

$

4.18

 

During the year ended December 31, 2025, we granted 76,016 DSUs to non-employee directors and recorded compensation expense of $167 thousand related to the grants. In addition, during the year ended December 31, 2025, we recorded compensation expense of $39 thousand, which represents an accrual of anticipated bonus expense to be paid in DSUs for certain employees. This bonus accrual is recorded in accrued liabilities until the bonus is paid and the DSUs are granted. During the year ended December 31, 2024, we granted 23,529 DSUs to non-employee directors and recorded compensation expense of $194 thousand related to the grants. In addition, during the year ended December 31, 2024, we granted 11,990 DSUs to employees, and we recorded compensation expense of $8 thousand for an anticipated bonus expense accrual for certain employees. Because DSUs are fully vested when issued, there is no unrecognized compensation expense as of December 31, 2025.

Restricted Stock Units

The following table summarizes RSU activity from January 1, 2024 through December 31, 2025:

 

 

 

Restricted Stock Units

 

 

 

 

 

 

Weighted-

 

 

 

 

 

 

Average

 

 

 

Number

 

 

Grant Date

 

 

 

of Units

 

 

Fair Value

 

Outstanding and unvested at January 1, 2024

 

 

61,056

 

 

$

7.37

 

Granted

 

 

219,045

 

 

$

8.16

 

Less: Vested and released

 

 

(61,056

)

 

$

7.37

 

Less: Forfeited

 

 

(1,000

)

 

$

8.35

 

Outstanding and unvested at December 31, 2024

 

 

218,045

 

 

$

8.16

 

Granted

 

 

639,800

 

 

$

2.53

 

Less: Vested and released

 

 

(126,715

)

 

$

8.03

 

Less: Forfeited

 

 

(96,667

)

 

$

3.81

 

Outstanding at December 31, 2025

 

 

634,463

 

 

$

3.17

 

During the year ended December 31, 2025, we granted 120,000 RSUs to non-employee directors and 519,800 RSUs to certain employees, and we recorded compensation expense for unvested RSUs totaling $320 thousand and $727 thousand, respectively. During the year ended December 31, 2024, we granted 52,045 RSUs to non-employee directors and 167,000 RSUs to certain employees, and we recorded compensation expense for unvested RSUs totaling $434 thousand and $323 thousand, respectively.

During the year ended December 31, 2025, RSUs with an aggregate fair value of $275 thousand vested. The fair value of the vesting was determined based on the Company’s closing stock price on the date of vest. As of December 31, 2025, there was $1.5 million of unrecognized compensation expense related to unvested RSUs, which is expected to be recognized over a weighted average period of 1.97 years.

Performance Stock Units

The following table summarizes PSU activity from January 1, 2024 through December 31, 2025:

 

 

 

Performance Stock Units

 

 

 

 

 

 

Weighted-

 

 

 

 

 

 

Average

 

 

 

Number

 

 

Grant Date

 

 

 

of Units

 

 

Fair Value

 

Outstanding at January 1, 2024

 

 

—

 

 

 

—

 

Granted

 

 

130,000

 

 

$

7.57

 

Outstanding at December 31, 2024

 

 

130,000

 

 

$

7.57

 

Granted

 

 

313,650

 

 

$

3.85

 

Less: Forfeited

 

 

(182,500

)

 

$

5.22

 

Outstanding at December 31, 2025

 

 

261,150

 

 

$

4.74

 

During the years ended December 31, 2025 and 2024, we granted 313,650 PSUs and 130,000 PSUs, respectively, to certain employees under our 2024 Plan. The number of shares of our common stock that each participant is eligible to receive will be determined based on the initial target number of PSUs granted and the actual performance level achieved.

We evaluate the probability of the common stock issuance for these awards and adjust the expense as appropriate. As of December 31, 2025 and 2024, it was not probable that we would meet the performance criteria at the end of the respective performance periods for the outstanding PSUs; therefore, we have not recognized any compensation expense related to the PSUs. Outstanding unvested PSUs have a remaining weighted average recognition period of 2 years as of December 31, 2025.
v3.25.4
Net Loss per Share
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Net Loss per Share

14. Net Loss per Share

The computation of basic and diluted net loss per share attributable to common stockholders is as follows (in thousands, except per share amounts):

 

 

 

Years Ended December 31,

 

 

 

2025

 

 

2024

 

Numerator:

 

 

 

 

 

 

Net loss

 

$

(15,382

)

 

$

(15,063

)

Denominator:

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

 

20,998

 

 

 

20,617

 

Effect of dilutive securities

 

 

—

 

 

 

—

 

Weighted average common shares outstanding, diluted

 

 

20,998

 

 

 

20,617

 

Net loss per share

 

 

 

 

 

 

Basic

 

$

(0.73

)

 

$

(0.73

)

Diluted

 

$

(0.73

)

 

$

(0.73

)

 

 

 

 

 

 

 

Total anti-dilutive securities excluded from diluted net loss per share

 

 

1,072

 

 

 

33

 
v3.25.4
Supplemental Cash Flow Information
 12 Months Ended
Dec. 31, 2025
Supplemental Cash Flow Elements [Abstract]  
Supplemental Cash Flow Information

15. Supplemental Cash Flow Information

The following is provided as supplemental information to the consolidated statements of cash flows (in thousands):

 

 

 

Years Ended December 31,

 

 

 

2025

 

 

2024

 

Supplemental cash flow information:

 

 

 

 

 

 

Cash paid for interest

 

$

7,116

 

 

$

8,790

 

Cash paid (refunded) for income taxes, net:

 

 

 

 

 

 

Federal

 

$

(502

)

 

$

507

 

State and local

 

 

 

 

 

 

Texas

 

 

92

 

 

$

120

 

Iowa

 

 

(103

)

 

 

—

 

Illinois

 

 

—

 

 

 

65

 

California

 

 

(30

)

 

 

2

 

Other states (aggregate)

 

 

(80

)

 

 

95

 

Total state and local

 

 

(121

)

 

 

282

 

Total income taxes paid (refunded), net

 

$

(623

)

 

$

789

 

 

 

 

 

 

 

 

Supplemental non-cash activities:

 

 

 

 

 

 

Receivable for sale of fixed assets

 

$

74

 

 

$

—

 

Liabilities assumed in exchange for right of use lease assets

 

$

1,338

 

 

$

—

 

Debt issuance costs added to note payable

 

$

—

 

 

$

831

 

Accrued interest converted to note payable

 

$

—

 

 

$

290

 
v3.25.4
Subsequent Events
 12 Months Ended
Dec. 31, 2025
Subsequent Events [Abstract]  
Subsequent Events

16. Subsequent Events

 

Monroe Eighth Amendment to Credit Agreement

On March 12, 2026, we and certain of our domestic subsidiaries entered into the Monroe Eighth Amendment to the Credit Agreement with Monroe Capital, as administrative agent for the lenders thereto, and the lenders. The Monroe Eighth Amendment amended the Credit Agreement to, among other things, modify the financial covenants.

Monroe Warrants Amendment

As previously disclosed, on October 19, 2020 we granted a warrant to purchase 500,000 shares exercisable immediately and subsequently issued a warrant to purchase 350,000 shares on October 19, 2021 to affiliates of the Holders in connection with the Warrants. On March 12, 2026, we and the Holders entered into an Amendment to Warrant to Purchase Common Stock to each of the Warrants to extend the expiration date of the Warrants from March 19, 2028 to June 28, 2030.

Texas Capital Bank Loan Agreement

On March 12, 2026, we and certain of our domestic subsidiaries entered into the TCB Loan Agreement. Capitalized terms not otherwise defined herein have the meanings set forth in the TCB Loan Agreement. Among other things, the TCB Loan Agreement provides for an asset-based revolving credit facility in the maximum principal amount of $40.0 million with a sublimit for issuance of letters of credit of up to $3.5 million. Each loan under the revolving credit facility bears interest at the rate equal to the lesser of (a) the Maximum Rate and (b) the Applicable Rate of Term SOFR plus the Applicable Margin. The maturity date of the revolving credit facility is December 30, 2029. The revolving credit facility contains an accordion feature permitting the revolving credit facility to be increased by up to $10 million.

Certain of our domestic subsidiaries are the borrowers under the TCB Loan Agreement. We and certain of our domestic subsidiaries are guarantors under the TCB Loan Agreement. As security for the obligations of the borrowers under the TCB Loan Agreement, (i) the borrowers under the TCB Loan Agreement have granted a first priority lien on substantially all of their tangible and intangible personal property, including a pledge of the capital stock and membership interests, as applicable, of certain of our direct and indirect subsidiaries, and (ii) the guarantors under the TCB Loan Agreement have granted a first priority lien on the capital stock and membership interests, as applicable, of certain of our direct and indirect domestic subsidiaries.

The TCB Loan Agreement contains certain financial covenants, including a minimum fixed charge coverage ratio. In addition, the TCB Loan Agreement contains negative covenants limiting, among other things, additional indebtedness, transactions with affiliates, additional liens, sales of assets, dividends, investments and advances, prepayments of debt, mergers and acquisitions, and other matters customarily restricted in such agreements. The TCB Loan Agreement also contains customary events of default, including payment defaults, breaches of representations and warranties, covenant defaults, events of bankruptcy and insolvency, change of control, and failure of any guaranty or security document supporting the TCB Loan Agreement to be in full force and effect. Upon the

occurrence of an event of default, the outstanding obligations under the TCB Loan Agreement may be accelerated and become immediately due and payable.

On March 12, 2026, contemporaneously with the execution and delivery of the TCB Loan Agreement, the PNC Loan Agreement was terminated in accordance with its terms thereof and all outstanding amounts thereunder were repaid.
v3.25.4
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

The consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The accompanying consolidated financial statements include the operating activity of QRHC and its subsidiaries for the years ended December 31, 2025 and 2024. All significant intercompany accounts and transactions have been eliminated in consolidation.
Accounting Estimates

Accounting Estimates

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could materially differ from those estimates.

We use estimates when accounting for the carrying amounts of accounts receivable, goodwill and other intangible assets, deferred taxes, assets held for sale, and stock-based compensation expense, all of which are discussed in their respective notes to the consolidated financial statements.
Segment Information

Segment Information

Our chief operating decision maker (“CODM”), the President and Chief Executive Officer, manages the Company’s business activities as a single operating and reportable segment at the consolidated level. Accordingly, our CODM uses consolidated net income (loss) to measure segment profit or loss, allocate resources and assess performance. Further, the CODM reviews and utilizes functional expenses (cost of revenue, selling, general and administrative) at the consolidated level to manage our operations. Other segment items included in consolidated net income (loss) are interest expense and income tax expense, which are reflected in the consolidated statements of operations. For expenses incurred during the years ended December 31, 2025 and 2024, refer to our Consolidated Statements of Operations.
Revenue Recognition

Revenue Recognition

We recognize revenue as services are performed or products are delivered. We recognize revenue net of any contracted pricing discounts or rebate arrangements. Revenue from our equipment leases, which are classified as operating leases, is based on a fixed amount and recognized over the term of the lease.

We generally recognize revenue for the gross amount of consideration received as we are generally the primary obligor (or principal) in our contracts with customers as we hold complete responsibility to the customer for contract fulfillment. In situations in which we are not primarily obligated nor do we have credit risk, we record the revenue net of certain cost amounts. We record amounts collected from customers for sales tax on a net basis.
Cash and Cash Equivalents

Cash and Cash Equivalents

We consider all highly liquid instruments with a maturity of three months or less when purchased to be cash equivalents.
Accounts Receivable

Accounts Receivable

Our receivables, which are recorded when services are performed or when services are billed in advance, are claims against third parties that will generally be settled in cash. The carrying value of our receivables, net of the allowance for doubtful accounts, represents the estimated net realizable value. We estimate our allowance for doubtful accounts based on consideration of a number of

factors, including the length of time trade accounts are past due, our previous loss history, the creditworthiness of individual customers, economic conditions affecting specific customer industries, and economic conditions in general. We write off past-due receivable balances after all reasonable collection efforts have been exhausted. We credit payments subsequently received on such receivables to the allowance for doubtful accounts in the period we receive the payment.

As of December 31, 2025 and 2024, we had established an allowance of $780 thousand and $831 thousand, respectively, for potentially uncollectible accounts receivable. We record delinquent finance charges on outstanding accounts receivable only if they are collected.

The changes in our allowance for doubtful accounts for the years ended December 31, 2025 and 2024, were as follows (in thousands):

 

 

 

Years ended December 31,

 

 

 

2025

 

 

2024

 

Beginning balance

 

$

831

 

 

$

1,582

 

Bad debt expense

 

 

1,029

 

 

 

1,913

 

Uncollectible accounts written off, net

 

 

(1,080

)

 

 

(949

)

Transfer to assets held for sale

 

 

—

 

 

 

(1,715

)

Ending balance

 

$

780

 

 

$

831

 
Fair Value Measurements

Fair Value Measurements

Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements, defines fair value as the price that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Topic 820 also specifies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value as follows:

Level 1: Quoted prices in active markets for identical assets or liabilities;

Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

Level 3: Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimate of assumptions that market participants would use in pricing the asset or liability.
Held for Sale

Held for Sale

Assets and liabilities to be disposed of by sale (“disposal groups”) are reclassified into assets and liabilities held for sale on our consolidated balance sheets. The reclassification occurs when all the held for sale criteria have been met. Disposal groups are measured at the lower of carrying value or fair value less costs to sell. Assets held for sale are not depreciated or amortized. We assess the recoverability of disposal groups each reporting period they remain classified as held for sale. At December 31, 2024, we recognized an impairment charge to the carrying value of a disposal group deemed held for sale. The sale was completed in the first quarter of 2025. See Note 3, Sale of Assets for further discussion.

Property and Equipment

Property and Equipment

We record property and equipment at cost and depreciate the assets using the straight-line method over the estimated useful lives of the assets. We amortize leasehold improvements over the shorter of the estimated useful life or the remaining term of the related leases. We charge expenditures for repairs and maintenance to operations as incurred; we capitalize renewals and betterments when they extend the useful life of the asset. We record gains and losses on the disposition of property and equipment in the period incurred.

The useful lives of property and equipment for purposes of computing depreciation are as follows:

 

Computer equipment

3 to 5 years

Office furniture and fixtures

5 to 7 years

Machinery and equipment

5 to 20 years

Leasehold improvements

5 to 7 years
Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

We analyze long-lived assets, including property and equipment and finite-lived intangible assets, which are held and used in our operations, for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. We review the amortization method and estimated period of useful life at least at each balance sheet date. We record the effects of any revision to operations when the change arises. We recognize impairment when the estimated undiscounted cash flow generated by those assets is less than the carrying amounts of such assets. The amount of impairment is the excess of the carrying amount over the fair value of such assets. We recognized an impairment charge to the carrying value of our customer relationship intangible asset balance during the year ended December 31, 2025. See Note 5, Goodwill and Other Intangible Assets for further discussion.

Goodwill

Goodwill

We record as goodwill the excess of the consideration transferred over the fair value of the net identifiable assets acquired. We do not amortize goodwill; however, annually, or whenever there is an indication that goodwill may be impaired, we evaluate qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. Our test of goodwill impairment includes assessing qualitative factors and the use of judgment in evaluating economic conditions, industry and market conditions, cost factors, and entity-specific events, such as market capitalization as compared to our book value. We performed our 2025 annual goodwill impairment analysis in the second quarter of 2025 and no impairment was recorded.
Net Income (Loss) per Share

Net Income (Loss) per Share

We compute basic net income (loss) per share using the weighted average number of shares of common stock outstanding plus the number of common stock equivalents for Deferred Stock Units (“DSUs”), during the period. We compute diluted net income (loss) per share using the weighted average number of shares of common stock outstanding during the period, adjusted for the dilutive effect of common stock equivalents. Dilutive potential common shares consist of the incremental common shares issuable upon the exercise of outstanding stock options and warrants. Dilutive potential securities are excluded from the computation of earnings per share if their effect is anti-dilutive. The dilutive effect of outstanding stock options and warrants is reflected in diluted earnings per share by application of the treasury stock method.
Concentrations

Concentrations

Financial instruments that potentially subject us to credit risk consist principally of cash, cash equivalents, and trade accounts receivable. We deposit our cash with commercial banks. Cash deposits at commercial banks are at risk to the extent that the balances exceed the Federal Deposit Insurance Corporation insured level per institution. The bank cash balances on deposit may periodically exceed federally insured limits; however, we have never experienced any losses related to these balances.

We sell our services and products primarily to customers without requiring collateral; however, we routinely assess the financial condition of our customers and maintain allowances for anticipated losses. From year to year, the customers that exceed 10% of our annual revenue, if any, may change. The following table discloses the number of customers that accounted for more than 10% of our annual revenue and the related receivable balances as of and for the years ended December 31, 2025 and 2024:

 

 

 

Customers Exceeding 10% of Revenue

 

Year

 

Number of
Customers

 

 

Percentage of
Revenue

 

 

Percentage of
Accounts Receivable

 

2025

 

 

1

 

 

 

23

%

 

 

21

%

2024

 

 

1

 

 

 

27

%

 

 

28

%

 

We believe we have no significant credit risk in excess of recorded reserves.
Leases

Leases

 

We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and current and long-term operating lease liabilities on our consolidated balance sheets. We currently do not have any material finance lease arrangements.

Operating lease ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate in effect at the commencement date of the lease in determining the present value of future payments.

When we have the option to extend the lease term, terminate the lease before the contractual expiration date, or purchase the leased asset, and if it is reasonably certain that we will exercise the option, we consider these options in determining the classification and measurement of the lease. Leases with a term of 12 months or less at lease inception are not recorded on the balance sheet.
Income Taxes

Income Taxes

We recognize deferred tax assets and liabilities for the future tax consequences of temporary differences between the book and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. We establish valuation allowances to reduce a deferred tax asset to the amount expected to be realized. We assess our ability to realize deferred tax assets based on current earnings performance and on projections of future taxable income in the relevant tax jurisdictions. These projections do not include taxable income from the reversal of deferred tax liabilities and do not reflect a general growth assumption but do consider known or pending events, such as the passage of legislation. We review our estimates of future taxable income annually.

If we are required to pay interest on the underpayment of income taxes, we recognize interest expense in the first period the interest becomes due according to the provisions of the relevant tax law.

If we are subject to payment of penalties, we recognize an expense for the amount of the statutory penalty in the period when the position is taken on the income tax return. If we did not recognize the penalty in the period when the position was initially taken, we recognize the expense in the period when we change our judgment about meeting minimum statutory thresholds related to the initial position taken.
Advertising

Advertising

We charge our advertising costs to expense when incurred. During the years ended December 31, 2025 and 2024, advertising expense totaled $69 thousand and $115 thousand, respectively.
Stock-Based Compensation

Stock-Based Compensation

We measure all share-based payments, including grants of options to purchase common stock, the issuance of DSUs and restricted stock units (“RSUs”) to employees and non-employee directors, and the issuance of performance stock units (“PSUs”) to employees, using a fair value-based method, in accordance with ASC Topic 718, Stock Compensation. All share-based awards have been classified as equity instruments, and we recognize the vesting of the awards ratably over their respective terms. See Note 13, Stockholders’ Equity for a description of our share-based compensation plan and information related to awards granted under our incentive compensation plans.

We estimate the fair value of stock options using the Black-Scholes valuation model. Significant assumptions used in the calculation are as follows:

•
We determine the expected life based on a weighted average of historical grants taking into account the vesting period of awards, time until exercise and expiration dates;
•
We measure the expected volatility using the historical changes in the market price of our common stock;
•
We use the implied yield on zero-coupon U.S. Treasury bonds with a remaining maturity equal to the expected term of the awards to approximate the risk-free interest rate; and
•
We recognize the effects of forfeitures in compensation cost when they occur.
Deferred Stock Units

Deferred Stock Units

Non-employee directors can elect to receive all or a portion of their annual retainers in the form of DSUs. The DSUs are recognized at their fair value on the date of grant and are fully vested upon issuance. Director fees deferred into stock units are calculated and expensed each month by taking fees earned during the month and dividing by the closing price of our common stock on the last trading day of the month, rounded down to the nearest whole share. In addition, certain executive compensation expense is also granted in the form of DSUs. Each DSU represents the right to receive one share of our common stock following the completion of a grantee’s service.

Restricted Stock Units

Restricted Stock Units

Non-employee directors receive a portion of their annual board compensation in the form of RSUs. In addition, certain employee compensation is also granted in the form of RSUs. The RSUs are recognized at their fair value on the date of grant. Each RSU represents the right to receive one share of our common stock once fully vested. RSUs typically vest over a one to three-year period.
Performance Stock Units

Performance Stock Units

Beginning in 2024, certain employees were granted PSUs under our incentive compensation plan. Performance criteria for PSU awards are determined at the time of the grant and are generally earned over a three-year period, at which time any earned shares would be fully vested. PSUs currently outstanding may vest in a range between 0% and 200%, depending on the terms of the award agreement. The PSUs are recognized at their fair value on the date of grant, and compensation expense is based on the probable issuance of units at the end of the performance period.
Business Combinations

Business Combinations

Our business acquisitions are accounted for in accordance with ASC Topic 805, Business Combinations. In purchase accounting, identifiable assets acquired and liabilities assumed are recognized at their estimated fair values at the acquisition date, and any remaining purchase price is recorded as goodwill. In determining the fair values of assets acquired and liabilities assumed, we make significant estimates and assumptions, particularly with respect to long-lived tangible and intangible assets. Critical estimates used in valuing tangible and intangible assets include, but are not limited to, future expected cash flows, discount rates, market prices and asset lives.

Our consolidated financial statements include the results of operations from the date of such acquisition.

We expense all acquisition-related costs as incurred in selling, general and administrative expenses in the consolidated statements of operations.
Recent Accounting Pronouncements

Recent Accounting Pronouncements

Adopted

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires incremental disclosures related to reportable segments, including significant segment expense categories and amounts for each reportable segment. Entities with a single reportable segment are required to provide the new disclosures required under ASC 280. We adopted ASU 2023-07 during the year ended December 31, 2024 on a retrospective basis by including the additional required disclosures. Refer to Segment Information in this note for more information.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires entities to provide additional disclosure related to the transparency and decision usefulness of income tax disclosures, including additional disclosure around the rate reconciliation and income taxes paid. We adopted ASU 2023-09 during the year ended December 31, 2025 on a retrospective basis. This guidance is only related to disclosures and did not have a significant impact on our consolidated financial statements.

Pending Adoption

In November 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses (Subtopic 220-40). The ASU requires the disaggregated disclosure of specific expense categories, including employee compensation, depreciation, and amortization, within relevant income statement captions. This ASU also requires disclosure of the total amount of selling expenses along with the definition of selling expenses. The ASU is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Adoption of this ASU can either be applied prospectively to consolidated financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all prior periods presented in the consolidated financial statements. Early adoption is also permitted. This ASU will likely result in the required additional disclosures being included in our consolidated financial statements once adopted. We are currently evaluating the provisions of this ASU.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 306): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient that allows public entities to assume that current conditions as of the balance sheet date will remain unchanged for the remaining life of the asset when developing a reasonable and supportable forecast as part of estimating expected credit losses on these assets. The amendments are effective for fiscal years beginning after December 15, 2025. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

In September 2025, the FASB issued ASU No. 2025-06, Intangibles- Goodwill and Other- Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which modernizes guidance on accounting for costs related to internal-use software. This ASU removes references to software development project stages and applies a more principles-based

approach for capitalization. The ASU also clarifies related disclosure requirements. The ASU is effective for annual periods beginning after December 15, 2027, and interim periods within those fiscal years. Adoption of this ASU can be applied prospectively, retrospectively or using a modified transition approach. Early adoption is permitted. We are currently evaluating the provisions of this ASU, but we do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

There have been no other recent accounting pronouncements or changes in accounting pronouncements that have been issued but not yet adopted that are of significance, or potential significance, to us.
v3.25.4
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Changes in Allowance for Doubtful Accounts

The changes in our allowance for doubtful accounts for the years ended December 31, 2025 and 2024, were as follows (in thousands):

 

 

 

Years ended December 31,

 

 

 

2025

 

 

2024

 

Beginning balance

 

$

831

 

 

$

1,582

 

Bad debt expense

 

 

1,029

 

 

 

1,913

 

Uncollectible accounts written off, net

 

 

(1,080

)

 

 

(949

)

Transfer to assets held for sale

 

 

—

 

 

 

(1,715

)

Ending balance

 

$

780

 

 

$

831

 
Schedule of Property and Equipment Useful Lives

The useful lives of property and equipment for purposes of computing depreciation are as follows:

 

Computer equipment

3 to 5 years

Office furniture and fixtures

5 to 7 years

Machinery and equipment

5 to 20 years

Leasehold improvements

5 to 7 years
Schedule of Number of Customers that Accounted for More than Ten Percentage of Annual Sales and Receivable Balances The following table discloses the number of customers that accounted for more than 10% of our annual revenue and the related receivable balances as of and for the years ended December 31, 2025 and 2024:

 

 

 

Customers Exceeding 10% of Revenue

 

Year

 

Number of
Customers

 

 

Percentage of
Revenue

 

 

Percentage of
Accounts Receivable

 

2025

 

 

1

 

 

 

23

%

 

 

21

%

2024

 

 

1

 

 

 

27

%

 

 

28

%
v3.25.4
Sale of Assets (Tables)
 12 Months Ended
Dec. 31, 2025
Discontinued Operations and Disposal Groups [Abstract]  
Summary of Assets and Liabilities Classified as Held for Sale

The following table summarizes the assets and liabilities classified as held for sale in the consolidated balance sheet (in thousands):

 

 

 

December 31, 2024

 

Assets held for sale

 

 

 

Accounts receivable, net

 

$

3,736

 

Equipment, net

 

 

1,289

 

Intangible assets, net

 

 

5,154

 

Goodwill

 

 

5,222

 

Valuation allowance on assets held for sale

 

 

(5,511

)

Total assets held for sale

 

$

9,890

 

Liabilities held for sale

 

 

 

Accounts Payable

 

$

251

 

Accrued Liabilities

 

 

1,589

 

Total liabilities held for sale

 

$

1,840

 
v3.25.4
Property and Equipment, Net, and Other Assets (Tables)
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Components Property and Equipment, Net, and Other Assets

At December 31, 2025 and 2024, Property and equipment, net, and other assets consisted of the following (in thousands):

 

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

Machinery and equipment

 

$

5,097

 

 

$

6,183

 

Office furniture and fixtures

 

 

417

 

 

 

592

 

Leasehold improvements

 

 

327

 

 

 

758

 

Computer equipment

 

 

489

 

 

 

466

 

    Property and equipment, gross

 

 

6,330

 

 

 

7,999

 

Accumulated depreciation

 

 

(3,447

)

 

 

(3,492

)

    Property and equipment, net

 

 

2,883

 

 

 

4,507

 

Right-of-use operating lease assets

 

 

2,112

 

 

 

1,305

 

Security deposits and other assets

 

 

643

 

 

 

683

 

    Property and equipment, net, and other assets

 

$

5,638

 

 

$

6,495

 
v3.25.4
Goodwill and Other Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Finite-Lived Intangible Assets

Goodwill and other intangible assets are as follows (in thousands):

 

December 31, 2025

 

Estimated
Useful Life

 

Gross Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net

 

Finite lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

 

5 years

 

$

20,685

 

 

$

17,979

 

 

$

2,706

 

Software

 

7 years

 

 

5,740

 

 

 

1,586

 

 

 

4,154

 

Trademarks

 

7 years

 

 

2,026

 

 

 

1,236

 

 

 

790

 

Non-compete agreements

 

3 years

 

 

140

 

 

 

140

 

 

 

—

 

Total finite lived intangible assets

 

 

 

$

28,591

 

 

$

20,941

 

 

$

7,650

 

 

December 31, 2024

 

Estimated
Useful Life

 

Gross Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net

 

Finite lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

 

5 years

 

$

25,805

 

 

$

17,188

 

 

$

8,617

 

Software

 

7 years

 

 

5,518

 

 

 

2,271

 

 

 

3,247

 

Trademarks

 

7 years

 

 

2,026

 

 

 

947

 

 

 

1,079

 

Non-compete agreements

 

3 years

 

 

2,250

 

 

 

2,247

 

 

 

3

 

Total finite lived intangible assets

 

 

 

$

35,599

 

 

$

22,653

 

 

$

12,946

 
Schedule of Changes in Goodwill

 

 

 

 

Carrying
Amount

 

Changes in goodwill:

 

 

 

 

 

Balance at December 31, 2023

 

 

 

$

85,828

 

RWS pre-acquisition adjustment

 

 

 

 

459

 

Reclassification to assets held for sale

 

 

 

 

(5,222

)

Balance at December 31, 2024 and 2025

 

 

 

$

81,065

 
Summary of Estimate Future Amortization Expense

We estimate future amortization expense as of December 31, 2025 to be approximately as follows (in thousands):

 

Year Ending December 31,

 

 

 

Amount

 

2026

 

 

 

$

3,718

 

2027

 

 

 

 

1,092

 

2028

 

 

 

 

986

 

2029

 

 

 

 

761

 

2030

 

 

 

 

686

 

Thereafter

 

 

 

 

407

 

Total

 

 

 

$

7,650

 
v3.25.4
Current Liabilities (Tables)
 12 Months Ended
Dec. 31, 2025
Current Liabilities Disclosure [Abstract]  
Components of Accounts Payable and Accrued Liabilities

The components of Accounts payable and accrued liabilities are as follows (in thousands):

 

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

Accounts payable

 

$

34,105

 

 

$

37,068

 

Accrued taxes

 

 

382

 

 

 

626

 

Employee compensation(1)

 

 

2,049

 

 

 

1,323

 

Operating lease liability - current portion

 

 

621

 

 

 

434

 

Accrued interest

 

 

532

 

 

 

20

 

Miscellaneous

 

 

695

 

 

 

428

 

 

 

$

38,384

 

 

$

39,899

 

(1) 2025 employee compensation includes accrued severance and retirement costs of approximately $0.8 million.
v3.25.4
Notes Payable (Tables)
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Schedule of Debt Obligations

Our debt obligations are as follows (in thousands):

 

 

 

 

 

As of December 31,

 

 

 

Interest Rate (1)

 

2025

 

 

2024

 

Monroe Term Loan (2)

 

11.49%

 

$

51,093

 

 

$

54,000

 

PNC ABL Facility (3)

 

5.94%

 

 

15,639

 

 

 

23,109

 

PNC Equipment Term Loan 1 (4)

 

6.72%

 

 

345

 

 

 

2,729

 

PNC Equipment Term Loan 2 (4)

 

6.72%

 

 

147

 

 

 

—

 

Green Remedies Promissory Note (5)

 

3.00%

 

 

—

 

 

 

564

 

Total notes payable

 

 

 

 

67,224

 

 

 

80,402

 

Less: Current portion of long-term debt

 

 

 

 

(1,015

)

 

 

(1,651

)

Less: Unamortized debt issuance costs

 

 

 

 

(2,210

)

 

 

(2,171

)

Less: Unamortized OID

 

 

 

 

—

 

 

 

(83

)

Less: Unamortized OID warrant

 

 

 

 

—

 

 

 

(232

)

Notes payable, net

 

 

 

$

63,999

 

 

$

76,265

 

 

 

 

 

 

 

 

 

 

(1) Interest rates as of December 31, 2025

 

 

 

 

 

 

(2) Bears interest based on SOFR plus Applicable Margin ranging from 5.5% to 7.5%

 

(3) Bears interest based on Term SOFR plus a margin of 2.25%

 

 

 

 

 

 

(4) Bears interest based on Term SOFR plus a margin of 3.0%

 

 

 

 

 

 

(5) Stated interest rate of 3.0%

 

 

 

 

 

 
Schedule of Future Minimum Principal Payments

The future minimum principal payments as of December 31, 2025 are as follows (in thousands):

 

Year Ending December 31,

 

Amount

 

2026

 

$

1,015

 

2027

 

 

557

 

2028

 

 

540

 

2029

 

 

16,179

 

2030

 

 

48,933

 

Total

 

$

67,224

 
Schedule of Changes in Debt Issuance Costs The table below summarizes changes in debt issuance costs (in thousands).

 

 

 

 

 

December 31,

 

 

 

 

 

2025

 

 

2024

 

Debt issuance costs

 

 

 

 

 

 

 

 

Beginning balance

 

 

 

$

2,171

 

 

$

1,345

 

Financing costs deferred

 

 

 

 

506

 

 

 

1,513

 

Less: Amortization expense

 

 

 

 

(467

)

 

 

(687

)

Debt issuance costs, net of accumulated amortization

 

 

 

$

2,210

 

 

$

2,171

 
v3.25.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2025
Lessee Disclosure [Abstract]  
Future Minimum Lease Payments Required Under Operating Leases

The future minimum lease payments required under our operating leases as of December 31, 2025 are as follows (in thousands):

 

Year Ending December 31,

 

Amount

 

2026

 

$

809

 

2027

 

 

712

 

2028

 

 

325

 

2029

 

 

325

 

2030

 

 

245

 

Total lease payments

 

 

2,416

 

Less: Interest

 

 

(282

)

Present value of lease payments

 

$

2,134

 

 
Summary of Lease Related Assets and Liabilities Recorded on Balance Sheet

The table below presents the lease related assets and liabilities recorded on the balance sheet (in thousands).

 

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

Operating Leases

 

 

 

 

 

 

Right-of-use operating lease assets:

 

 

 

 

 

 

Property and equipment, net and other assets

 

$

2,112

 

 

$

1,305

 

 

 

 

 

 

 

 

Lease liabilities:

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

621

 

 

$

434

 

Other long-term liabilities

 

 

1,513

 

 

 

833

 

       Total operating lease liabilities

 

$

2,134

 

 

$

1,267

 
v3.25.4
Revenue (Tables)
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Summary of Revenue Disaggregated by Source The following table presents our revenue disaggregated by source.

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Revenue Type:

 

 

 

 

 

 

Services

 

$

237,585

 

 

$

277,257

 

Product sales and other

 

 

12,632

 

 

 

11,275

 

   Total revenue

 

$

250,217

 

 

$

288,532

 
v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Components of Net Deferred Taxes

The components of net deferred taxes are as follows (in thousands):

 

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

Deferred tax assets (liabilities):

 

 

 

 

 

 

Net operating loss

 

$

3,333

 

 

$

1,258

 

Depreciation and amortization

 

 

8,821

 

 

 

9,271

 

Stock-based compensation

 

 

4,621

 

 

 

4,637

 

Interest expense

 

 

8,153

 

 

 

6,005

 

Capitalized software costs

 

 

180

 

 

 

(21

)

Bonus accrual

 

 

(46

)

 

 

131

 

Allowance for doubtful accounts

 

 

205

 

 

 

218

 

Other

 

 

82

 

 

 

(98

)

Total deferred tax assets, net

 

 

25,349

 

 

 

21,401

 

Less: valuation allowance

 

 

(25,349

)

 

 

(21,401

)

Net deferred taxes

 

$

—

 

 

$

—

 

 
Schedule of Provision of Income Taxes The provision for income taxes consisted of the following (in thousands):

 

 

 

 

 

 

 

Years Ended December 31,

 

 

 

 

 

 

 

2025

 

 

2024

 

Current

 

 

 

 

 

$

16

 

 

$

291

 

Deferred

 

 

 

 

 

 

—

 

 

 

—

 

Total

 

 

 

 

 

$

16

 

 

$

291

 
Schedule of Effective Income Tax Rate Reconciliation

The reconciliation between the income tax expense calculated by applying statutory rates to net loss and the income tax expense reported in the accompanying consolidated financial statements is as follows (in thousands):

 

 

 

Years Ended December 31,

 

 

 

2025

 

 

2024

 

 

 

Tax Expense

 

 

Rate

 

 

Tax Expense

 

 

Rate

 

U.S. federal statutory rate applied to pretax loss

 

$

(3,227

)

 

 

21.0

%

 

$

(3,102

)

 

 

21.0

%

State taxes - current, net of federal benefit

 

 

13

 

 

 

(0.1

)%

 

 

291

 

 

 

(2.0

)%

State taxes - deferred

 

 

(802

)

 

 

5.2

%

 

 

(808

)

 

 

5.5

%

Permanent differences

 

 

47

 

 

 

(0.3

)%

 

 

(171

)

 

 

1.2

%

Change in state tax rates

 

 

20

 

 

 

(0.1

)%

 

 

30

 

 

 

(0.2

)%

Other

 

 

17

 

 

 

(0.1

)%

 

 

63

 

 

 

(0.4

)%

Change in valuation allowance

 

 

3,948

 

 

 

(25.7

)%

 

 

3,988

 

 

 

(27.0

)%

Total

 

$

16

 

 

 

(0.1

)%

 

$

291

 

 

 

(1.9

)%
v3.25.4
Stockholders' Equity (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Summary of Warrant Activity

The following table summarizes the warrants issued and outstanding as of December 31, 2025 and 2024:

 

Warrants Issued and Outstanding as of December 31, 2025

 

 

 

Date of

 

Exercise

 

 

Shares of

 

Description

 

Issuance

 

Expiration

 

Price

 

 

Common Stock

 

Exercisable warrants

 

10/19/2020

 

3/19/2028

 

$

1.50

 

 

 

500,000

 

Exercisable warrants

 

10/19/2021

 

3/19/2028

 

$

1.50

 

 

 

350,000

 

Total warrants issued and outstanding

 

 

 

 

 

850,000

 
Summary of Stock Option Activity

The following table summarizes the stock option activity from January 1, 2024 through December 31, 2025:

 

 

Stock Options

 

 

 

 

 

 

 

 

Weighted-

 

 

 

 

 

 

Exercise

 

Average

 

 

 

Number

 

 

Price Per

 

Exercise Price

 

 

 

of Shares

 

 

Share

 

Per Share

 

Outstanding at January 1, 2024

 

 

2,869,013

 

 

$1.17 — $23.20

 

$

3.33

 

Granted

 

 

15,000

 

 

$6.98  — $7.63

 

$

7.41

 

Exercised

 

 

(324,736

)

 

$1.48  — $6.40

 

$

3.43

 

Canceled/Forfeited

 

 

(47,828

)

 

$1.83 — $23.20

 

$

6.95

 

Outstanding at December 31, 2024

 

 

2,511,449

 

 

$1.17 — $10.32

 

$

3.28

 

Exercised

 

 

(37,500

)

 

$1.17  — $1.65

 

$

1.30

 

Canceled/Forfeited

 

 

(162,677

)

 

$1.51 — $10.32

 

$

5.03

 

Outstanding at December 31, 2025

 

 

2,311,272

 

 

$1.35  — $8.68

 

$

3.18

 
Summary of Stock Option Outstanding

The following additional information applies to options outstanding at December 31, 2025:

 

 

Weighted-Average Remaining Contractual Life

 

 

2.3

 

Options Exercisable at December 31, 2025

 

 

2,284,606

 

Weighted-Average Exercise Price of Options Exercisable

 

$ 3.14

 

 

The following additional information applies to options outstanding at December 31, 2024:

Weighted-Average Remaining Contractual Life

 

 

4.5

 

Options Exercisable at December 31, 2024

 

 

2,329,985

 

Weighted-Average Exercise Price of Options Exercisable

 

$ 3.07

 
Schedule of Weighted-Average Estimated Value of Employee Stock Options Granted The weighted-average estimated value of employee stock options granted during the year ended December 31, 2024 was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions:

 

 

Years Ended December 31,

 

 

 

2025

 

 

2024

 

Expected volatility

 

 

—

 

 

 

62

%

Risk-free interest rate

 

 

—

 

 

 

4.00

%

Expected dividends

 

 

—

 

 

 

0.00

%

Expected term in years

 

 

—

 

 

 

5.9

 
Deferred Stock Units [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Summary of DSU Activity

The following table summarizes DSU activity from January 1, 2024 through December 31, 2025:

 

 

 

Deferred Stock Units

 

 

 

 

 

 

Weighted-

 

 

 

 

 

 

Average

 

 

 

Number

 

 

Grant Date

 

 

 

of Units

 

 

Fair Value

 

Outstanding at January 1, 2024

 

 

231,635

 

 

$

4.18

 

Granted

 

 

35,519

 

 

$

8.45

 

Less: Released

 

 

(16,053

)

 

$

4.38

 

Outstanding at December 31, 2024

 

 

251,101

 

 

$

4.77

 

Granted

 

 

76,016

 

 

$

2.20

 

Less: Released

 

 

(112,677

)

 

$

4.16

 

Outstanding at December 31, 2025

 

 

214,440

 

 

$

4.18

 
Restricted Stock Units [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Summary of RSU Activity

The following table summarizes RSU activity from January 1, 2024 through December 31, 2025:

 

 

 

Restricted Stock Units

 

 

 

 

 

 

Weighted-

 

 

 

 

 

 

Average

 

 

 

Number

 

 

Grant Date

 

 

 

of Units

 

 

Fair Value

 

Outstanding and unvested at January 1, 2024

 

 

61,056

 

 

$

7.37

 

Granted

 

 

219,045

 

 

$

8.16

 

Less: Vested and released

 

 

(61,056

)

 

$

7.37

 

Less: Forfeited

 

 

(1,000

)

 

$

8.35

 

Outstanding and unvested at December 31, 2024

 

 

218,045

 

 

$

8.16

 

Granted

 

 

639,800

 

 

$

2.53

 

Less: Vested and released

 

 

(126,715

)

 

$

8.03

 

Less: Forfeited

 

 

(96,667

)

 

$

3.81

 

Outstanding at December 31, 2025

 

 

634,463

 

 

$

3.17

 
Performance Stock Units [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Summary of PSU Activity

The following table summarizes PSU activity from January 1, 2024 through December 31, 2025:

 

 

 

Performance Stock Units

 

 

 

 

 

 

Weighted-

 

 

 

 

 

 

Average

 

 

 

Number

 

 

Grant Date

 

 

 

of Units

 

 

Fair Value

 

Outstanding at January 1, 2024

 

 

—

 

 

 

—

 

Granted

 

 

130,000

 

 

$

7.57

 

Outstanding at December 31, 2024

 

 

130,000

 

 

$

7.57

 

Granted

 

 

313,650

 

 

$

3.85

 

Less: Forfeited

 

 

(182,500

)

 

$

5.22

 

Outstanding at December 31, 2025

 

 

261,150

 

 

$

4.74

 
v3.25.4
Net Loss per Share (Tables)
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Computation of Basic and Diluted Net Loss per Share Attributable to Common Stockholders

The computation of basic and diluted net loss per share attributable to common stockholders is as follows (in thousands, except per share amounts):

 

 

 

Years Ended December 31,

 

 

 

2025

 

 

2024

 

Numerator:

 

 

 

 

 

 

Net loss

 

$

(15,382

)

 

$

(15,063

)

Denominator:

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

 

20,998

 

 

 

20,617

 

Effect of dilutive securities

 

 

—

 

 

 

—

 

Weighted average common shares outstanding, diluted

 

 

20,998

 

 

 

20,617

 

Net loss per share

 

 

 

 

 

 

Basic

 

$

(0.73

)

 

$

(0.73

)

Diluted

 

$

(0.73

)

 

$

(0.73

)

 

 

 

 

 

 

 

Total anti-dilutive securities excluded from diluted net loss per share

 

 

1,072

 

 

 

33

 
v3.25.4
Supplemental Cash Flow Information (Tables)
 12 Months Ended
Dec. 31, 2025
Supplemental Cash Flow Elements [Abstract]  
Summary of Supplemental Information to Consolidated Statements of Cash Flows

The following is provided as supplemental information to the consolidated statements of cash flows (in thousands):

 

 

 

Years Ended December 31,

 

 

 

2025

 

 

2024

 

Supplemental cash flow information:

 

 

 

 

 

 

Cash paid for interest

 

$

7,116

 

 

$

8,790

 

Cash paid (refunded) for income taxes, net:

 

 

 

 

 

 

Federal

 

$

(502

)

 

$

507

 

State and local

 

 

 

 

 

 

Texas

 

 

92

 

 

$

120

 

Iowa

 

 

(103

)

 

 

—

 

Illinois

 

 

—

 

 

 

65

 

California

 

 

(30

)

 

 

2

 

Other states (aggregate)

 

 

(80

)

 

 

95

 

Total state and local

 

 

(121

)

 

 

282

 

Total income taxes paid (refunded), net

 

$

(623

)

 

$

789

 

 

 

 

 

 

 

 

Supplemental non-cash activities:

 

 

 

 

 

 

Receivable for sale of fixed assets

 

$

74

 

 

$

—

 

Liabilities assumed in exchange for right of use lease assets

 

$

1,338

 

 

$

—

 

Debt issuance costs added to note payable

 

$

—

 

 

$

831

 

Accrued interest converted to note payable

 

$

—

 

 

$

290

 
v3.25.4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)
 3 Months Ended 12 Months Ended
Jun. 30, 2025
Mar. 31, 2025
Dec. 31, 2024
Sep. 30, 2024
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Significant Accounting Policies [Line Items]              
Allowance for doubtful accounts receivable     $ 831,000   $ 780,000 $ 831,000 $ 1,582,000
Impairment of goodwill $ 0 $ 0 0 $ 0      
Goodwill assigned to disposal group     5,222,000     5,222,000  
Goodwill     $ 81,065,000   81,065,000 81,065,000 $ 85,828,000
Advertising expense         $ 69,000 $ 115,000  
Deferred Stock Units [Member]              
Significant Accounting Policies [Line Items]              
Number of stock unit received         1    
Maximum [Member]              
Significant Accounting Policies [Line Items]              
Lease terms         12 months    
Maximum [Member] | Performance Stock Units [Member]              
Significant Accounting Policies [Line Items]              
Performance stock vesting range         200.00%    
Minimum [Member] | Performance Stock Units [Member]              
Significant Accounting Policies [Line Items]              
Performance stock vesting range         0.00%    
v3.25.4
Summary of Significant Accounting Policies - Changes in Allowance for Doubtful Accounts (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Receivables [Abstract]    
Beginning balance $ 831 $ 1,582
Bad debt expense 1,029 1,913
Uncollectible accounts written off, net (1,080) (949)
Transfer to assets held for sale   (1,715)
Ending balance $ 780 $ 831
v3.25.4
Summary of Significant Accounting Policies - Schedule of Property and Equipment Useful Lives (Detail)
Dec. 31, 2025
Minimum [Member] | Computer Equipment [Member]  
Significant Accounting Policies [Line Items]  
Useful lives of property and equipment 3 years
Minimum [Member] | Office Furniture and Fixtures [Member]  
Significant Accounting Policies [Line Items]  
Useful lives of property and equipment 5 years
Minimum [Member] | Machinery and Equipment [Member]  
Significant Accounting Policies [Line Items]  
Useful lives of property and equipment 5 years
Minimum [Member] | Leasehold Improvements [Member]  
Significant Accounting Policies [Line Items]  
Useful lives of property and equipment 5 years
Maximum [Member] | Computer Equipment [Member]  
Significant Accounting Policies [Line Items]  
Useful lives of property and equipment 5 years
Maximum [Member] | Office Furniture and Fixtures [Member]  
Significant Accounting Policies [Line Items]  
Useful lives of property and equipment 7 years
Maximum [Member] | Machinery and Equipment [Member]  
Significant Accounting Policies [Line Items]  
Useful lives of property and equipment 20 years
Maximum [Member] | Leasehold Improvements [Member]  
Significant Accounting Policies [Line Items]  
Useful lives of property and equipment 7 years
v3.25.4
Summary of Significant Accounting Policies - Schedule of Number of Customers that Accounted for More than Ten Percentage of Annual Sales and Receivable Balances (Detail) - Customer
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Revenue [Member]    
Concentration Risk [Line Items]    
Number of Customers 1 1
Customer Accounted [Member] | Revenue [Member] | Customers [Member]    
Concentration Risk [Line Items]    
Percentage of Revenue/Accounts Receivable 23.00% 27.00%
Customer Accounted [Member] | Accounts Receivable | Customers [Member]    
Concentration Risk [Line Items]    
Percentage of Revenue/Accounts Receivable 21.00% 28.00%
v3.25.4
Sale of Assets - Additional Information (Detail) - USD ($)
 12 Months Ended
Mar. 31, 2025
Dec. 31, 2025
Dec. 31, 2024
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Selling price of assets, classified as held for sale $ 5,000,000    
Loss on sale of assets, net   $ 4,400,000  
Proceeds from sale of assets   6,140,000  
Repayment of loan   6,098,000 $ 1,303,000
Impairment     $ 5,500,000
Sale Lease back Transaction [Member]      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Gain on sale of equipment   276,000  
Proceeds from sale of assets   1,100,000  
Repayment of loan   900,000  
Maximum [Member]      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Additional amounts expected from sale of assets   6,500,000  
Future milestone payments   $ 5,000,000  
v3.25.4
Sale of Assets - Summary of Assets and Liabilities Classified as Held for Sale (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Assets held for sale  
Accounts receivable, net $ 3,736
Equipment, net 1,289
Intangible assets, net 5,154
Goodwill 5,222
Valuation allowance on assets held for sale (5,511)
Total assets held for sale 9,890
Liabilities held for sale  
Accounts Payable 251
Accrued Liabilities 1,589
Total liabilities held for sale $ 1,840
v3.25.4
Property and Equipment, Net, and Other Assets - Components of Property and Equipment, Net, and Other Assets (Detail) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Property Plant And Equipment [Line Items]    
Property and equipment, gross $ 6,330 $ 7,999
Accumulated depreciation (3,447) (3,492)
Property and equipment, net 2,883 4,507
Right-of-use operating lease assets 2,112 1,305
Security deposits and other assets 643 683
Property and equipment, net, and other assets 5,638 6,495
Machinery and Equipment [Member]    
Property Plant And Equipment [Line Items]    
Property and equipment, gross 5,097 6,183
Office Furniture and Fixtures [Member]    
Property Plant And Equipment [Line Items]    
Property and equipment, gross 417 592
Leasehold Improvements [Member]    
Property Plant And Equipment [Line Items]    
Property and equipment, gross 327 758
Computer Equipment [Member]    
Property Plant And Equipment [Line Items]    
Property and equipment, gross $ 489 $ 466
v3.25.4
Property and Equipment, Net, and Other Assets - Additional Information (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Property And Equipment Net And Other Assets [Line Items]    
Depreciation $ 905 $ 1,033
Service [Member]    
Property And Equipment Net And Other Assets [Line Items]    
Depreciation reflected in cost of revenue $ 775 $ 871
v3.25.4
Goodwill and Other Intangible Assets - Schedule of Finite-Lived Intangible Assets (Detail) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 28,591 $ 35,599
Accumulated Amortization 20,941 22,653
Net $ 7,650 $ 12,946
Customer Relationships [Member]    
Finite Lived Intangible Assets [Line Items]    
Estimated Useful Life 5 years 5 years
Gross Carrying Amount $ 20,685 $ 25,805
Accumulated Amortization 17,979 17,188
Net $ 2,706 $ 8,617
Software [Member]    
Finite Lived Intangible Assets [Line Items]    
Estimated Useful Life 7 years 7 years
Gross Carrying Amount $ 5,740 $ 5,518
Accumulated Amortization 1,586 2,271
Net $ 4,154 $ 3,247
Trademarks [Member]    
Finite Lived Intangible Assets [Line Items]    
Estimated Useful Life 7 years 7 years
Gross Carrying Amount $ 2,026 $ 2,026
Accumulated Amortization 1,236 947
Net $ 790 $ 1,079
Non-compete Agreements [Member]    
Finite Lived Intangible Assets [Line Items]    
Estimated Useful Life 3 years 3 years
Gross Carrying Amount $ 140 $ 2,250
Accumulated Amortization $ 140 2,247
Net   $ 3
v3.25.4
Goodwill and Other Intangible Assets - Schedule of Changes in Goodwill (Detail)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
Goodwill [Line Items]  
Balance at begining period $ 85,828
Reclassification to assets held for sale (5,222)
Balance at ending period 81,065
RWS [Member]  
Goodwill [Line Items]  
RWS pre-acquisition adjustment $ 459
v3.25.4
Goodwill and Other Intangible Assets - Summary of Estimate Future Amortization Expense (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]  
2026 $ 3,718
2027 1,092
2028 986
2029 761
2030 686
Thereafter 407
Total $ 7,650
v3.25.4
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($)
 3 Months Ended 12 Months Ended
Jun. 30, 2025
Mar. 31, 2025
Dec. 31, 2024
Sep. 30, 2024
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]              
Amortization of intangibles         $ 5,146,000 $ 9,239,000  
Indefinite-lived intangible assets other than goodwill         0    
Impairment of goodwill   $ 1,700,000     1,707,000 5,511,000  
Impairment of goodwill $ 0 $ 0 $ 0 $ 0      
Goodwill assigned to disposal group     5,222,000     5,222,000  
Goodwill     81,065,000   81,065,000 81,065,000 $ 85,828,000
Customer Relationships [Member]              
Goodwill and Intangible Assets Disclosure [Abstract]              
Reclassification to assets held for sale     $ 5,200,000     5,200,000  
Not Deductible for Tax Purposes [Member]              
Goodwill and Intangible Assets Disclosure [Abstract]              
Goodwill         66,100,000    
Deductible for Tax Purposes [Member]              
Goodwill and Intangible Assets Disclosure [Abstract]              
Goodwill         $ 15,000,000    
RWS [Member]              
Goodwill and Intangible Assets Disclosure [Abstract]              
Adjustment resulted in a net increase goodwill           459,000  
Adjustment resulted in a net increase accounts payable           $ 500,000  
v3.25.4
Current Liabilities - Components of Accounts Payable and Accrued Liabilities (Detail) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Accounts Payable and Accrued Liabilities, Current [Abstract]    
Accounts payable $ 34,105 $ 37,068
Accrued taxes 382 626
Employee compensation 2,049 1,323
Operating lease liability - current portion 621 434
Accrued interest 532 20
Miscellaneous 695 428
Accounts payable and accrued liabilities $ 38,384 $ 39,899
v3.25.4
Current Liabilities - Components of Accounts Payable and Accrued Liabilities (Parenthetical) (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2025
USD ($)
Accounts Payable and Accrued Liabilities, Current [Abstract]  
Accrued severance and retirement costs $ 0.8
v3.25.4
Notes Payable - Schedule of Debt Obligations (Detail) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Oct. 19, 2020
Debt Instrument [Line Items]      
Interest Rate     3.00%
Total notes payable $ 67,224 $ 80,402  
Less: Current portion of long-term debt (1,015) (1,651)  
Less: Unamortized debt issuance costs (2,210) (2,171)  
Less: Unamortized OID   (83)  
Less: Unamortized OID warrant   (232)  
Notes payable, net $ 63,999 76,265  
Monroe Term Loan [Member]      
Debt Instrument [Line Items]      
Interest Rate 11.49%    
Total notes payable $ 51,093 54,000  
PNC ABL Facility [Member]      
Debt Instrument [Line Items]      
Interest Rate 5.94%    
Total notes payable $ 15,639 23,109  
PNC Equipment Term Loan 1 [Member]      
Debt Instrument [Line Items]      
Interest Rate 6.72%    
Total notes payable $ 345 2,729  
PNC Equipment Term Loan 2 [Member]      
Debt Instrument [Line Items]      
Interest Rate 6.72%    
Total notes payable $ 147    
Green Remedies Promissory Note [Member]      
Debt Instrument [Line Items]      
Interest Rate 3.00%    
Total notes payable   $ 564  
v3.25.4
Notes Payable - Schedule of Debt Obligations (Parenthetical) (Detail)
 12 Months Ended
Dec. 31, 2025
Oct. 19, 2020
Debt Instrument [Line Items]    
Debt instrument stated interest rate   3.00%
Monroe Term Loan [Member]    
Debt Instrument [Line Items]    
Debt instrument stated interest rate 11.49%  
Green Remedies Promissory Note [Member]    
Debt Instrument [Line Items]    
Debt instrument stated interest rate 3.00%  
PNC ABL Facility [Member]    
Debt Instrument [Line Items]    
Debt instrument interest rate 2.25%  
Debt instrument stated interest rate 5.94%  
PNC Equipment Term Loan [Member]    
Debt Instrument [Line Items]    
Debt instrument interest rate 3.00%  
Minimum [Member] | Monroe Term Loan [Member]    
Debt Instrument [Line Items]    
Debt instrument interest rate 5.50%  
Maximum [Member] | Monroe Term Loan [Member]    
Debt Instrument [Line Items]    
Debt instrument interest rate 7.50%  
v3.25.4
Notes Payable - Schedule of Future Minimum Principal Payments (Detail) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Debt Disclosure [Abstract]    
2026 $ 1,015  
2027 557  
2028 540  
2029 16,179  
2030 48,933  
Total $ 67,224 $ 80,402
v3.25.4
Notes Payable - Schedule of Changes in Debt Issuance Costs (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Debt Disclosure [Abstract]    
Beginning balance $ 2,171 $ 1,345
Financing costs deferred 506 1,513
Less: Amortization expense (467) (687)
Debt issuance costs, net of accumulated amortization $ 2,210 $ 2,171
v3.25.4
Notes Payable - Additional Information (Detail) - USD ($)
 3 Months Ended 12 Months Ended
Oct. 19, 2020
Mar. 31, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2021
Dec. 31, 2020
Oct. 31, 2020
Aug. 05, 2020
Debt Instrument [Line Items]                
Borrowings     $ 67,224,000 $ 80,402,000        
Repayment of loan     6,098,000 1,303,000        
Repayments of credit facilities     106,961,000 97,660,000        
Debt instrument annual interest rate 3.00%              
Aggregate principal amount $ 2,700,000              
Interest expense related to borrowings     7,600,000 8,100,000        
Interest expense related to amortization of debt issuance fees, and debt discount costs, interest related to vendor supply chain financing programs     1,600,000 $ 2,200,000        
Monroe Capital Credit Agreement [Member]                
Debt Instrument [Line Items]                
Debt discounts         $ 536,000 $ 766,000    
Monroe Capital Credit Agreement [Member] | Equity Offering [Member]                
Debt Instrument [Line Items]                
Sale of stock, number of shares issued in transaction 500,000       350,000 500,000    
Warrant issued 350,000              
Price per warrant $ 1.5              
Warrant expiration date Mar. 19, 2028              
Minimum net proceeds receivable by warrant holders $ 1,000,000              
Monroe Capital Credit Agreement [Member] | Senior Secured Term Loan [Member]                
Debt Instrument [Line Items]                
Debt instrument maturity date Jun. 28, 2030              
Repayment of loan     2,500,000          
Revolving credit current borrowing facility             $ 11,500,000  
Revolving credit current borrowing facility, outstanding     51,100,000          
Percentage of original principal amount 1.00%              
Monroe Capital Credit Agreement [Member] | Delayed Draw Term Loan Facility [Member]                
Debt Instrument [Line Items]                
Revolving credit facility maximum principal amount $ 25,000,000   $ 0          
ABL Facility [Member]                
Debt Instrument [Line Items]                
Revolving credit facility maximum principal amount               $ 45,000,000
Sublimit for issuance of letters of credit               $ 3,500,000
Debt instrument maturity date     Dec. 30, 2029          
Borrowings     $ 0          
Revolving credit current borrowing facility     37,700,000          
Revolving credit current borrowing facility, outstanding     $ 15,600,000          
Repayments of credit facilities   $ 1,500,000            
ABL Facility [Member] | Base Rate [Member]                
Debt Instrument [Line Items]                
Debt instrument interest rate     1.25%          
ABL Facility [Member] | SOFR [Member]                
Debt Instrument [Line Items]                
Debt instrument interest rate     5.94%          
Debt instrument interest rate     2.25%          
PNC Equipment Term Loan [Member]                
Debt Instrument [Line Items]                
Borrowings     $ 492,000          
PNC Equipment Term Loan 1 [Member]                
Debt Instrument [Line Items]                
Debt instrument interest rate     2.00%          
Quarterly installments for term loan     $ 144,000          
PNC Equipment Term Loan 1 [Member] | Minimum [Member] | SOFR [Member]                
Debt Instrument [Line Items]                
Debt instrument interest rate     3.00%          
PNC Equipment Term Loan 1 [Member] | Maximum [Member] | SOFR [Member]                
Debt Instrument [Line Items]                
Debt instrument interest rate     6.72%          
PNC Equipment Term Loan 2 [Member]                
Debt Instrument [Line Items]                
Debt instrument interest rate     2.00%          
Quarterly installments for term loan     $ 32,000          
Repayment of loan     $ 900,000          
PNC Equipment Term Loan 2 [Member] | Minimum [Member] | SOFR [Member]                
Debt Instrument [Line Items]                
Debt instrument interest rate     3.00%          
PNC Equipment Term Loan 2 [Member] | Maximum [Member] | SOFR [Member]                
Debt Instrument [Line Items]                
Debt instrument interest rate     6.72%          
v3.25.4
Leases - Additional Information (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Lessee Lease Description [Line Items]    
Operating right-of-use asset $ 2,112 $ 1,305
Operating lease liabilities $ 2,134 $ 1,267
Operating lease, Weighted average remaining life 3 years 7 months 6 days 2 years 9 months 18 days
Operating lease, Weighted average discount rate 6.20% 5.10%
Fixed cost operating lease expense $ 689 $ 811
Texas [Member]    
Lessee Lease Description [Line Items]    
Operating right-of-use asset $ 1,600  
Lessee, operating lease, discount rate 4.56%  
Pennsylvania [Member] | RWS [Member]    
Lessee Lease Description [Line Items]    
Operating right-of-use asset $ 749  
Operating leases expiration period 2026-10  
Lessee, operating lease, discount rate 7.50%  
Sale Lease back Transaction [Member]    
Lessee Lease Description [Line Items]    
Lease terms 5 years  
Operating right-of-use asset $ 1,300  
Minimum [Member] | Sale Lease back Transaction [Member]    
Lessee Lease Description [Line Items]    
Lessee, operating lease, discount rate 6.72%  
Maximum [Member]    
Lessee Lease Description [Line Items]    
Lease terms 12 months  
Maximum [Member] | Sale Lease back Transaction [Member]    
Lessee Lease Description [Line Items]    
Lessee, operating lease, discount rate 7.32%  
v3.25.4
Leases - Future Minimum Lease Payments Required Under Operating Leases (Detail) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Lessee, Operating Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract]    
2026 $ 809  
2027 712  
2028 325  
2029 325  
2030 245  
Total lease payments 2,416  
Less: Interest (282)  
Present value of lease payments $ 2,134 $ 1,267
v3.25.4
Leases - Summary of Lease Related Assets and Liabilities Recorded on Balance Sheet (Detail) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Assets and Liabilities, Lessee [Abstract]    
Right-of-use operating lease assets $ 2,112 $ 1,305
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Property Plant And Equipment Net Including Deposits Assets Noncurrent Property Plant And Equipment Net Including Deposits Assets Noncurrent
Operating lease liability - current portion $ 621 $ 434
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] Accounts payable and accrued liabilities Accounts payable and accrued liabilities
Operating lease liability - long-term portion $ 1,513 $ 833
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] Other long-term liabilities Other long-term liabilities
Total operating lease liabilities $ 2,134 $ 1,267
v3.25.4
Revenue - Additional Information (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Revenue Recognition [Line Items]    
Revenue $ 250,217 $ 288,532
Advance payment period 1 month  
Deferred revenue $ 128 1,000
Management Fee [Member]    
Revenue Recognition [Line Items]    
Revenue $ 311 $ 455
v3.25.4
Revenue - Summary of Revenue Disaggregated by Source (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Disaggregation Of Revenue [Line Items]    
Total revenue $ 250,217 $ 288,532
Services [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenue 237,585 277,257
Product Sales and Other [Member]    
Disaggregation Of Revenue [Line Items]    
Total revenue $ 12,632 $ 11,275
v3.25.4
Income Taxes - Additional Information (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Income Tax [Line Items]    
Valuation allowance $ 25,349,000 $ 21,401,000
Federal corporate income tax rate 21.00% 21.00%
State and federal corporate income tax rate 26.00%  
Income tax expense $ 16,000 $ 291,000
Operating loss carryforwards, subject to expiration 8,300,000  
net operating loss $ 3,333,000 1,258,000
Minimum [Member]    
Income Tax [Line Items]    
Net operating loss carry forwards expiration year 2036  
Maximum [Member]    
Income Tax [Line Items]    
Net operating loss carry forwards expiration year 2037  
State [Member]    
Income Tax [Line Items]    
Operating loss carryforwards $ 0 0
Federal [Member]    
Income Tax [Line Items]    
Operating loss carryforwards $ 12,600,000 $ 4,800,000
v3.25.4
Income Taxes - Components of Net Deferred Taxes (Detail) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Income Tax Disclosure [Abstract]    
Net operating loss $ 3,333 $ 1,258
Depreciation and amortization 8,821 9,271
Stock-based compensation 4,621 4,637
Interest expense 8,153 6,005
Capitalized software costs   (21)
Capitalized software costs 180  
Bonus accrual (46)  
Bonus accrual   131
Allowance for doubtful accounts 205 218
Other 82  
Other   (98)
Total deferred tax assets, net 25,349 21,401
Less: valuation allowance (25,349) (21,401)
Net deferred taxes $ 0 $ 0
v3.25.4
Income Taxes - Schedule of Provision of Income Taxes (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Income Tax Disclosure [Abstract]    
Current $ 16 $ 291
Deferred 0 0
Total income tax expense (benefit) $ 16 $ 291
v3.25.4
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Income Tax Disclosure [Abstract]    
U.S. federal statutory rate applied to pretax income (loss) $ (3,227) $ (3,102)
State taxes - current, net of federal benefit 13 291
State taxes - deferred (802) (808)
Permanent differences 47 (171)
Change in state tax rates 20 30
Other 17 63
Change in valuation allowance 3,948 3,988
Total income tax expense (benefit) $ 16 $ 291
U.S. federal statutory rate applied to pretax loss, Rate 21.00% 21.00%
State taxes - current, net of federal benefit, Rate (0.10%) (2.00%)
State taxes - deferred, Rate 5.20% 5.50%
Permanent differences, Rate (0.30%) 1.20%
Change in state tax rates, Rate (0.10%) (0.20%)
Other, Rate (0.10%) (0.40%)
Change in valuation allowance, Rate (25.70%) (27.00%)
Effective Income Tax Rate (0.10%) (1.90%)
v3.25.4
Commitments and Contingencies - Additional Information (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]    
Liabilities incurred to defend lawsuits $ 0 $ 0
Plan contribution expense $ 485,000 $ 373,000
v3.25.4
Stockholders' Equity - Additional Information (Detail) - $ / shares
Dec. 31, 2025
Dec. 31, 2024
Equity [Abstract]    
Preferred stock, shares authorized 10,000,000 10,000,000
Preferred stock, par value $ 0.001 $ 0.001
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, shares authorized 200,000,000 200,000,000
Common stock, par value $ 0.001 $ 0.001
Common stock, shares issued 20,959,751 20,606,395
Common stock, shares outstanding 20,959,751 20,606,395
v3.25.4
Stockholders' Equity - Additional Information - Employee Stock Purchase Plan (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Nov. 14, 2025
May 14, 2025
Nov. 14, 2024
May 14, 2024
Dec. 31, 2025
Dec. 31, 2024
Jul. 08, 2024
Equity [Abstract]              
Employee stock purchase plan expense         $ 106 $ 87  
Remaining number of shares available for grant         152,582   1,500,000
Shares issued for employee stock purchase plans options, shares 52,157 45,261 18,387 24,763 97,418 43,150  
Shares issued for employee stock purchase plans options $ 73 $ 78 $ 110 $ 150 $ 151 $ 260  
v3.25.4
Stockholders' Equity - Summary of Warrants Issued and Outstanding (Detail)
 12 Months Ended
Dec. 31, 2025
$ / shares
shares
Class Of Warrant Or Right [Line Items]  
Shares of Common Stock 850,000
Exercisable Warrants [Member] | Warrants One [Member]  
Class Of Warrant Or Right [Line Items]  
Date of Issuance Oct. 19, 2020
Date of Expiration Mar. 19, 2028
Exercise Price | $ / shares $ 1.50
Shares of Common Stock 500,000
Exercisable Warrants [Member] | Warrants Two [Member]  
Class Of Warrant Or Right [Line Items]  
Date of Issuance Oct. 19, 2021
Date of Expiration Mar. 19, 2028
Exercise Price | $ / shares $ 1.50
Shares of Common Stock 350,000
v3.25.4
Stockholders' Equity - Additional Information - Warrants (Detail) - shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Schedule Of Stockholders Equity [Line Items]    
Warrants issued 0 15,000
Warrants exercised 37,500 324,736
Warrants expired 162,677 47,828
Warrant [Member]    
Schedule Of Stockholders Equity [Line Items]    
Warrants issued 0 0
Warrants exercised 0 0
Warrants expired 0 0
v3.25.4
Stockholders' Equity - Additional Information - Incentive Compensation Plan (Detail) - shares
Dec. 31, 2025
Jul. 08, 2024
Schedule Of Stockholders Equity [Line Items]    
Shares available for grant under the 2024 Plan 152,582 1,500,000
Incentive Compensation Plan [Member]    
Schedule Of Stockholders Equity [Line Items]    
Shares available for grant under the 2024 Plan 519,618  
v3.25.4
Stockholders' Equity - Summary of Stock Option Activity (Detail) - $ / shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Outstanding Beginning Balance, Number of Shares 2,511,449 2,869,013  
Granted, Number of Shares 0 15,000  
Exercised, Number of Shares (37,500) (324,736)  
Canceled/Forfeited, Number of Shares (162,677) (47,828)  
Outstanding Ending Balance, Number of Shares 2,311,272 2,511,449 2,869,013
Outstanding Beginning Balance, Weighted-Average Exercise Price Per Share $ 3.28 $ 3.33  
Granted, Weighted-Average Exercise Price Per Share   7.41  
Exercised, Weighted-Average Exercise Price Per Share 1.3 3.43  
Cancelled/Forfeited, Weighted-Average Exercise Price Per Share 5.03 6.95  
Outstanding Ending Balance, Weighted-Average Exercise Price Per Share 3.18 3.28 $ 3.33
Outstanding, $1.17 - $23.20 [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Exercise Price Per Share, Minimum     1.17
Exercise Price Per Share, Maximum     $ 23.20
Granted, $6.98 - $7.63 [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Exercise Price Per Share, Minimum   6.98  
Exercise Price Per Share, Maximum   7.63  
Excercised, $1.48 - $6.40 [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Exercise Price Per Share, Minimum   1.48  
Exercise Price Per Share, Maximum   6.4  
Canceled/Forfeited, $1.83 - $23.20 [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Exercise Price Per Share, Minimum   1.83  
Exercise Price Per Share, Maximum   23.20  
Outstanding, $1.17 - $10.32 [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Exercise Price Per Share, Minimum   1.17  
Exercise Price Per Share, Maximum   $ 10.32  
Exercised, $1.17 - $1.65 [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Exercise Price Per Share, Minimum 1.17    
Exercise Price Per Share, Maximum 1.65    
Cancelled/Forfeited, $1.51 - $10.32 [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Exercise Price Per Share, Minimum 1.51    
Exercise Price Per Share, Maximum 10.32    
Oustanding, $1.35 - $8.68 [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Exercise Price Per Share, Minimum 1.35    
Exercise Price Per Share, Maximum $ 8.68    
v3.25.4
Stockholders' Equity - Additional Information - Stock Options (Detail) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Schedule Of Stockholders Equity [Line Items]    
Employee stock options granted 0 15,000
Options outstanding, intrinsic value $ 238 $ 8,200
Options exercisable, intrinsic value 238 8,100
Stock options expense 258 $ 516
Unvested share-based awards $ 81  
Expected weighted average period to recognize unearned stock-based compensation 1 year 5 months 12 days  
Stock Options [Member]    
Schedule Of Stockholders Equity [Line Items]    
Weighted-average grant-date fair value   $ 4.43
v3.25.4
Stockholders' Equity - Summary of Stock Option Outstanding (Detail) - $ / shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Equity [Abstract]    
Option Outstanding - Weighted-Average Remaining Contractual Life 2 years 3 months 18 days 4 years 6 months
Option Exercisable 2,284,606 2,329,985
Option Exercisable - Weighted Average Exercise Price $ 3.14 $ 3.07
v3.25.4
Stockholders' Equity - Schedule of Weighted-Average Estimated Value of Employee Stock Options Granted (Detail)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Equity [Abstract]    
Expected volatility 0.00% 62.00%
Risk-free interest rate 0.00% 4.00%
Expected dividends 0.00% 0.00%
Expected term in years   5 years 10 months 24 days
v3.25.4
Stockholders' Equity - Summary of DSU Activity (Details) - $ / shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Granted, Weighted-Average Grant Date Fair Value   $ 7.41
Deferred Stock Units [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Outstanding Beginning Balance, Number of Units 251,101 231,635
Outstanding Beginning Balance, Weighted-Average Grant Date Fair Value $ 4.77 $ 4.18
Granted 76,016 35,519
Granted, Weighted-Average Grant Date Fair Value $ 2.2 $ 8.45
Less: Released (112,677) (16,053)
Less: Released, Weighted-Average Grant Date Fair Value $ 4.16 $ 4.38
Outstanding Ending Balance, Number of Units 214,440 251,101
Outstanding Ending Balance, Weighted-Average Grant Date Fair Value $ 4.18 $ 4.77
v3.25.4
Stockholders' Equity - Additional Information - Deferred Stock Units (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Schedule Of Stockholders Equity [Line Items]    
Compensation expense related to grants $ 0 $ 0
Deferred Stock Units [Member]    
Schedule Of Stockholders Equity [Line Items]    
Deferred stock units 76,016 35,519
Compensation expense related to grants   $ 8,000
Unrecognized compensation expense $ 0  
Deferred Stock Units [Member] | Non-employee Director [Member]    
Schedule Of Stockholders Equity [Line Items]    
Deferred stock units 76,016 23,529
Compensation expense related to grants $ 167,000 $ 194,000
Deferred Stock Units [Member] | Employee [Member]    
Schedule Of Stockholders Equity [Line Items]    
Deferred stock units   11,990
Compensation expense related to grants $ 39,000  
v3.25.4
Stockholders' Equity - Summary of RSU Activity (Details) - $ / shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Granted, Weighted-Average Exercise Price Per Share   $ 7.41
Restricted Stock Units [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Outstanding Beginning Balance, Number of Units 218,045 61,056
Outstanding Beginning Balance, Weighted-Average Grant Date Fair Value $ 8.16 $ 7.37
Granted 639,800 219,045
Granted, Weighted-Average Exercise Price Per Share $ 2.53 $ 8.16
Less: Vested and released (126,715) (61,056)
Less: Vested and released, Weighted-Average Grant Date Fair Value $ 8.03 $ 7.37
Less: Forfeited (96,667) (1,000)
Less: Forfeited, Weighted- Average Grant Date Fair Value $ 3.81 $ 8.35
Outstanding Ending Balance, Number of Units 634,463 218,045
Outstanding Ending Balance, Weighted-Average Grant Date Fair Value $ 3.17 $ 8.16
v3.25.4
Stockholders' Equity - Additional Information - Restricted Stock Units (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Schedule Of Stockholders Equity [Line Items]    
Compensation expense related to grants $ 0 $ 0
Remaining weighted average recognition period 1 year 5 months 12 days  
Restricted Stock Units [Member]    
Schedule Of Stockholders Equity [Line Items]    
RSUs/PSUs granted 639,800 219,045
Aggregate fair value of RSUs vested $ 275,000  
unrecognized compensation expense related to unvested RSUs $ 1,500,000  
Remaining weighted average recognition period 1 year 11 months 19 days  
Restricted Stock Units [Member] | Non-employee Director [Member]    
Schedule Of Stockholders Equity [Line Items]    
RSUs/PSUs granted 120,000 52,045
Compensation expense related to grants $ 320,000 $ 434,000
Restricted Stock Units [Member] | Employee [Member]    
Schedule Of Stockholders Equity [Line Items]    
RSUs/PSUs granted 519,800 167,000
Compensation expense related to grants $ 727,000 $ 323,000
v3.25.4
Stockholders' Equity - Summary of Performance Stock Unit (PSU) Activity (Details) - $ / shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Granted, Weighted-Average Grant Date Fair Value   $ 7.41
Performance Stock Units [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Outstanding Beginning Balance, Number of Units 130,000  
Granted 313,650 130,000
Less: Forfeited (182,500)  
Outstanding Ending Balance, Number of Units 261,150 130,000
Outstanding Beginning Balance, Weighted-Average Grant Date Fair Value $ 7.57  
Granted, Weighted-Average Grant Date Fair Value 3.85 $ 7.57
Less: Forfeited, Weighted- Average Grant Date Fair Value 5.22  
Outstanding Ending Balance, Weighted-Average Grant Date Fair Value $ 4.74 $ 7.57
v3.25.4
Stockholders' Equity - Additional Information - Performance Stock Units (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Schedule Of Stockholders Equity [Line Items]    
Compensation expense related to grants $ 0 $ 0
Remaining weighted average recognition period 1 year 5 months 12 days  
Performance Stock Units [Member]    
Schedule Of Stockholders Equity [Line Items]    
RSUs/PSUs granted 313,650 130,000
Remaining weighted average recognition period 2 years  
Performance Stock Units [Member] | Employee [Member]    
Schedule Of Stockholders Equity [Line Items]    
RSUs/PSUs granted 313,650 130,000
v3.25.4
Net Loss per Share - Computation of Basic and Diluted Net Loss per Share Attributable to Common Stockholders (Detail) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Numerator:    
Net loss $ (15,382) $ (15,063)
Denominator:    
Weighted average common shares outstanding, basic 20,998,000 20,617,000
Weighted average common shares outstanding, diluted 20,998,000 20,617,000
Net loss per share    
Basic $ (0.73) $ (0.73)
Diluted $ (0.73) $ (0.73)
Total anti-dilutive securities excluded from diluted net loss per share 1,072,000 33,000
v3.25.4
Supplemental Cash Flow Information - Summary of Supplemental Information to Consolidated Statements of Cash Flows (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Supplemental cash flow information:    
Cash paid for interest $ 7,116 $ 8,790
Cash paid (refunded) for income taxes, net: (623) 789
Supplemental non-cash activities:    
Receivable for sale of fixed assets 74  
Liabilities assumed in exchange for right of use lease assets 1,338  
Debt issuance costs added to note payable   831
Accrued interest converted to note payable   290
Federal    
Supplemental cash flow information:    
Cash paid (refunded) for income taxes, net: (502) 507
State and local    
Supplemental cash flow information:    
Cash paid (refunded) for income taxes, net: (121) 282
State and local | Texas    
Supplemental cash flow information:    
Cash paid (refunded) for income taxes, net: 92 120
State and local | Iowa    
Supplemental cash flow information:    
Cash paid (refunded) for income taxes, net: (103)  
State and local | Illinois    
Supplemental cash flow information:    
Cash paid (refunded) for income taxes, net:   65
State and local | California    
Supplemental cash flow information:    
Cash paid (refunded) for income taxes, net: (30) 2
State and local | Other states (aggregate)    
Supplemental cash flow information:    
Cash paid (refunded) for income taxes, net: $ (80) $ 95
v3.25.4
Subsequent Events - Additional Information (Details) - USD ($)
Mar. 12, 2026
Oct. 19, 2020
Equity Offering [Member] | Monroe Capital Credit Agreement [Member]    
Subsequent Event [Line Items]    
Sale of stock, number of shares issued in transaction   500,000
Warrant issued   350,000
Subsequent Event | Texas Capital Bank Loan Agreement    
Subsequent Event [Line Items]    
Revolving credit facility maximum principal amount $ 40,000,000  
Debt instrument maturity date Dec. 30, 2029  
Credit facility increased $ 10,000,000  
Subsequent Event | Letter of Credit | Texas Capital Bank Loan Agreement    
Subsequent Event [Line Items]    
Revolving credit facility maximum principal amount $ 3,500,000  
Subsequent Event | Maximum [Member] | Monroe Warrants    
Subsequent Event [Line Items]    
Warrant expiration date Jun. 28, 2030  
Subsequent Event | Minimum [Member] | Monroe Warrants    
Subsequent Event [Line Items]    
Warrant expiration date Mar. 19, 2028