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Note 16 - Income Taxes
 6 Months Ended
Jun. 30, 2025
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

16. Income Taxes

 

The provision for income taxes reflects current taxes and deferred taxes. The effective tax rate for each of the six months ended June 30, 2025 and 2024 was 0%.

 

The valuation allowance against net deferred tax assets as of June 30, 2025, was $111,023, an increase of $6,662 from $104,361 as of December 31, 2024. The Company continues to provide for a valuation allowance to offset its net deferred tax assets until such time it is more likely than not the tax assets or portions thereof will be realized.

 

Excess tax deficiencies of $748 and $218 were recognized in the provision for income taxes for the three months ended June 30, 2025 and 2024, respectively, which were offset by $748 and $218 of valuation allowance, respectively.

 

An excess tax deficiency of $879 and an excess tax benefit of $1,512 were recognized in the provision for income taxes for the six months ended June 30, 2025 and 2024, respectively, which were offset by $879 and $1,512 of valuation allowance, respectively.

 

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”), which includes a broad range of tax reform provisions, was signed into law in the United States. The Company is currently evaluating the impact the new tax law will have on its financial condition and results of operations, but does not expect the OBBBA to have a material impact on its effective tax rate in 2025.