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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes
(10)
Income Taxes

The Company recognizes interest and penalties related to uncertain tax positions within the provision for income taxes. The total amount of unrecognized tax benefits that would affect the Company’s effective tax rate if recognized is $11.7 million and $8.9 million as of December 31, 2024 and 2023, respectively. The Company recognized interest related to uncertain tax positions of $1.7 million and $0.7 million for the years ended December 31, 2024 and 2023, respectively. No penalties have been recognized in conjunction with these positions.

The following is a reconciliation of the total amounts of unrecognized tax benefits for the years ended December 31, 2024, 2023 and 2022:

In thousands

 

 

2024

 

 

2023

 

 

2022

 

Beginning uncertain tax benefits

 

$

18,658

 

 

$

18,715

 

 

$

22,040

 

Prior year—decreases

 

 

 

(1,612

)

 

 

(2,261

)

 

 

(9,107

)

Current year—increases

 

 

 

2,437

 

 

 

2,204

 

 

 

5,782

 

Ending uncertain tax benefits

 

$

19,483

 

 

$

18,658

 

 

$

18,715

 

 

The Company files income tax returns in the United States, Ireland and United Kingdom, or UK. The Company remains subject to tax examinations in the following jurisdictions as of December 31, 2024:

 

Jurisdiction

 

Tax Years

United States—Federal

2018-2024

United States—State

2018-2024

Ireland

2019-2024

United Kingdom

2022-2024

The Company does not expect any gross liabilities to expire in 2025 based on statutory lapses or audits.

The components of loss from operations before taxes were as follows for the years ended December 31, 2024, 2023 and 2022:

 

In thousands

 

2024

 

 

2023

 

 

2022

 

United States

 

$

(5,284

)

 

$

15,881

 

 

$

5,358

 

Ireland and United Kingdom

 

 

(76,910

)

 

 

(85,177

)

 

 

(112,527

)

Other

 

 

 

4,994

 

 

 

15,626

 

 

 

3,364

 

Total loss before taxes

 

 

$

(77,200

)

 

$

(53,670

)

 

$

(103,805

)

 

The provision for income taxes shown in the accompanying consolidated statements of operations consists of the following for the years ended December 31, 2024, 2023 and 2022:

In thousands

 

2024

 

 

2023

 

 

2022

 

Current:

 

 

 

 

 

 

 

 

 

United States—Federal

 

$

3,185

 

 

$

1,597

 

 

$

562

 

United States—State

 

 

355

 

 

 

243

 

 

 

573

 

Foreign

 

 

 

1,443

 

 

 

3,602

 

 

 

863

 

Total current

 

$

4,983

 

 

$

5,442

 

 

$

1,998

 

Deferred:

 

 

 

 

 

 

 

 

 

United States—Federal

 

 

(2,886

)

 

 

9,927

 

 

 

(3,721

)

United States—State

 

 

(1,369

)

 

 

(934

)

 

 

284

 

Foreign

 

 

(11,514

)

 

 

(15,408

)

 

 

(1,646

)

Change in valuation allowance

 

 

15,769

 

 

 

6,415

 

 

 

5,083

 

Total deferred

 

$

—

 

 

$

—

 

 

$

—

 

Provision for income taxes

 

$

4,983

 

 

$

5,442

 

 

$

1,998

 

 

The provision for income taxes differs from the amount computed by applying the statutory income tax rate to income before taxes due to the following for the years ended December 31, 2024, 2023 and 2022:

In thousands

 

2024

 

 

2023

 

 

2022

 

Benefits from taxes at statutory rate

$

(19,300

)

 

$

(13,418

)

 

$

(25,952

)

Rate differential

 

8,896

 

 

 

8,042

 

 

 

9,141

 

Change in valuation reserves

 

15,769

 

 

 

6,415

 

 

 

5,083

 

Nondeductible employee compensation

 

1,374

 

 

 

31

 

 

 

2,344

 

Stock option/RSU windfall

 

783

 

 

 

4,500

 

 

 

3,569

 

ISO disqualifying disposition windfall

 

459

 

 

 

—

 

 

 

—

 

Branded prescription drug fee

 

 

 

(280

)

 

 

—

 

 

 

—

 

Research and development credits

 

(257

)

 

 

(376

)

 

 

(958

)

Tax return to provision adjustments

 

544

 

 

 

4,187

 

 

 

424

 

Foreign exchange

 

—

 

 

 

(2,921

)

 

 

7,859

 

Permanent and other

 

(1,048

)

 

 

141

 

 

 

(1,542

)

Stock Option/RSU Deferred Only Adjustment

 

 

 

(1,716

)

 

 

—

 

 

 

—

 

Uncertain tax positions

 

921

 

 

 

780

 

 

 

(3,290

)

Foreign-derived intangible income

 

(1,162

)

 

 

(1,939

)

 

 

(2,935

)

Loss of tax attributes

 

 

 

—

 

 

 

—

 

 

 

8,255

 

Provision for income taxes

$

4,983

 

 

$

5,442

 

 

$

1,998

 

 

The Company is subject to a corporate tax rate in Ireland of 25% for non-trading activities and 12.5% for trading activities. For the years ended December 31, 2024, 2023, and 2022, the Company applied the statutory corporate tax rate of 25% for Amarin Corporation plc, reflecting the non-trading tax rate in Ireland. However, for Amarin Pharmaceuticals Ireland Limited, a wholly-owned subsidiary of Amarin Corporation plc, the Company applied the 12.5% Irish trading tax rate. In the table above, the Company used Amarin Corporation plc’s 25% tax rate as the starting point for the reconciliation since it is the parent entity of the business.

In April 2016, the Company adopted ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Share-Based Payment Accounting which changes the accounting for certain aspects of share-based payments to employees. One aspect of the standard requires that excess tax benefits and deficiencies that arise upon vesting or exercise of share-based payments be recognized as an income tax benefit and expense in the income statement. Previously, such amounts were recognized as an increase and decrease in additional paid-in capital. This aspect of the standard was adopted prospectively, and accordingly the provisions for income taxes for the years ended December 31, 2024, 2023 and 2022 includes $1.0 million, nil and $0.6 million of excess tax benefits, respectively, arising from share-based payments during the period.

The income tax effect of each type of temporary difference comprising the net deferred tax asset as of December 31, 2024 and 2023 is as follows:

 

In thousands

 

December 31, 2024

 

 

December 31, 2023

 

Deferred tax assets:

 

 

 

 

 

 

Net operating losses

 

$

166,405

 

 

$

154,086

 

Stock-based compensation

 

 

12,451

 

 

 

9,929

 

Tax credits

 

 

2,421

 

 

 

2,409

 

Lease liability

 

 

1,837

 

 

 

1,971

 

Other reserves and accrued liabilities

 

 

8,808

 

 

 

7,916

 

Gross deferred tax assets

 

 

191,922

 

 

 

176,311

 

Less: valuation allowance

 

 

(187,562

)

 

 

(171,793

)

Total deferred tax assets

 

 

4,360

 

 

 

4,518

 

Deferred tax liabilities:

 

 

 

 

 

 

Depreciation and amortization

 

 

(2,985

)

 

 

(3,050

)

Lease asset

 

 

 

(1,375

)

 

 

(1,468

)

Total deferred tax liabilities

 

 

(4,360

)

 

 

(4,518

)

Net deferred tax assets

 

$

—

 

 

$

—

 

 

 

The Company assesses whether it is more-likely-than-not that the Company will realize its deferred tax assets. The Company determined that it was more likely than not that the net operating losses and the related deferred tax assets would not be realized in future periods and a full valuation allowance has been provided for all periods.

During 2024, the Company recorded adjustments to its deferred tax accounts related to the impact of foreign exchange rate changes and to reconcile the financial statement accounts to the amounts expected to result in future income and deductions under local law, primarily as it relates to Irish net operating losses and deferred taxes for stock compensation. These adjustments were fully offset with valuation allowances based on the Company’s position with respect to the realizability of its recorded deferred tax assets.

The Company has combined U.S. and non-U.S. net operating loss carryforwards of $1.0 billion, which do not expire. The total net operating loss carryforwards increased by approximately $75.6 million from the prior year primarily as a result of current year loss generated by the Company’s U.S. and non-U.S. subsidiaries, the impact of foreign exchange rate changes and adjustments to reconcile to the amount reported on the filed 2023 foreign tax returns. In addition, the Company has U.S. Federal tax credit carryforwards of $7.8 million and state tax credit carryforwards of $4.1 million. These amounts exclude the impact of any unrecognized tax benefits and valuation allowances. These carryforwards, which will expire between 2025 and 2044, may be used to offset future taxable income, if any.

As of December 31, 2024, there are no earnings that have been retained indefinitely for reinvestment by foreign subsidiary; therefore, no provision has been made for income taxes that would be payable upon the distribution of such earnings or the recovery of the Company’s investment in its subsidiaries as the amount of the related unrecognized deferred income tax liability is zero.

The Company's and its subsidiaries' income tax returns are periodically examined by various taxing authorities. The Company is currently under audit by the IRS for the Company’s 2018 U.S. income tax return and by the New York Department of Finance for the years 2018 and 2019. Although the outcome of tax audits is always uncertain and could result in significant cash tax payments, the Company does not believe the outcome of these audits will have a material adverse effect on the Company's consolidated financial position or results of operations.