INCOME TAXES |
6 Months Ended |
|---|---|
Jun. 30, 2024 | |
| INCOME TAXES | |
| INCOME TAXES | NOTE 12—INCOME TAXES During the three months ended June 30, 2024 and 2023, the Company experienced pre-tax net losses of $9,149,000 and $6,123,000. The Company's income tax provision was $100,000 and $179,000 during the three months ended June 30, 2024 and 2023. There were no deferred income tax provisions during the three months ended June 30, 2024 and 2023. During the six months ended June 30, 2024 and 2023, the Company experienced pre-tax net losses of $15,618,000 and $12,513,000. The Company's current income tax provision was $260,000 and $179,000 during the six months ended June 30, 2024 and 2023. There were no deferred income tax provisions during the six months ended June 30, 2024 and 2023. The Company’s tax returns for the years 2017 to 2022 are open for tax examination by U.S. federal and state, and the Danish tax authorities. The Company maintains a full valuation allowance on its U.S. and foreign deferred tax assets. The assessment regarding whether a valuation allowance is required considers both positive and negative evidence when determining whether it is more likely than not that deferred tax assets are recoverable. In making this assessment, significant weight is given to evidence that can be objectively verified. In its evaluation, the Company considered its cumulative losses historically and in recent years and its forecasted losses in the near term as significant negative evidence. Based upon review of available positive and negative evidence, the Company determined that the negative evidence outweighed the positive evidence and a full valuation allowance on its U.S. and foreign deferred tax assets will be maintained. The Company will continue to assess the realizability of its deferred tax assets and will adjust the valuation allowance as needed. |