Income Taxes |
9 Months Ended |
|---|---|
Sep. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Note 6 – Income Taxes
The Company’s effective tax rate was 3.39% and (0.12%) for the nine months ended September 30, 2025 and 2024, respectively. The increase in the quarterly rate is primarily the result of adjustments in its valuation allowance. During the nine months ended September 30, 2025, the Company recorded an impairment on the IPR&D asset which resulted in a decrease to the related deferred tax liability balance.
Tax Law Change
On July 4th, 2025, the President signed into law significant federal tax legislation, H.R.1 (the “Tax Reform Act of 2025”). The legislation includes numerous changes to U.S. corporate income tax law, including but not limited to: permanent 100% bonus depreciation for qualified property, immediate expensing of domestic research and experimental expenditures, modifications to the limitation on business interest expense, increased Section 179 expensing limits, changes to the international tax regime, and expanded limitations on the deductibility of executive compensation under IRC Section 162(m). Most provisions are effective for tax years beginning after December 31, 2024, with certain transition rules and exceptions.
The Company has evaluating the impact of the Tax Reform Act of 2025 on its condensed consolidated financial statements. There was no material impact given the Company’s tax loss profile and valuation allowance position.
|