Income taxes |
9 Months Ended |
|---|---|
Sep. 30, 2025 | |
| Income taxes | |
| Income taxes |
18. Income taxes The Company and its subsidiaries are subject to US federal and state income taxes. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. The Company files a consolidated income tax return with subsidiaries in which the Company holds an 80% or greater ownership interest. Subsidiaries in which the Company does not have an 80% or more ownership stake are not included in the Company’s consolidated income tax group and file their own separate income tax return(s). As a result, certain corporate entities included in these financial statements are not able to combine or offset their taxable income or losses with other entities’ tax attributes. On July 4, 2025, President Donald J. Trump signed the "One Big Beautiful Bill Act" (OBBBA) into law. Key corporate tax provisions include the restoration of 100% bonus depreciation, immediate expensing for domestic research and experimental expenditures, changes to interest limitations, and expanded compensation deductibility limits aggregation requirements. As the Company maintains a full valuation allowance on its deferred tax assets, the legislation does not have a material impact on our financial statements for the quarter ended September 30, 2025, and we do not expect it to have a material impact on its 2025 effective income tax rate. Income tax expense for the three and nine months ended September 30, 2025 and 2024 is based on the estimated annual effective tax rate, and includes interest related to unrecognized tax benefits and estimated state income taxes. The Company expects a net deferred tax asset with a full valuation allowance and 0% estimated annual effective tax rate for 2025. Income tax expense recognized for the three and nine months ended September 30, 2025 was approximately $26,000 and $0.2 million, respectively. For the three months ended September 30, 2024, income tax expense recognized was $0.1 million, and for the nine months ended September 30, 2024, an income tax benefit of approximately $24,000 was recognized. |