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INCOME TAXES
 6 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES

19. INCOME TAXES

 

The Company calculates its interim income tax provision in accordance with ASC Topic 270, Interim Reporting, and Topic 740, Income Taxes. The difference between the effective tax rate and the federal statutory rate of 21% is primarily due to items recognized for financial reporting purposes that are permanently disallowed for U.S. federal income tax purposes, as well as changes in the valuation allowance.

 

The One Big Beautiful Bill Act (“OBBB”) was enacted into law on July 4, 2025. The OBBB introduced significant tax law changes affecting various corporate tax provisions, including limitations on business interest expense deductions, immediate expensing of domestic research and experimentation expenditures under Section 174, updates to executive compensation aggregation rules under Section 162(m), modifications to certain tax credits, and changes to international tax items such as GILTI, FDII, and BEAT.

 

The Company is currently evaluating the impact of the OBBB on its deferred tax assets and liabilities, valuation allowance, and uncertain tax positions. The Company will evaluate the impact of OBBB in its third quarter financial statements, the period the law was enacted. The Company does not expect a material impact to its financial statements from the OBBB. As the Company maintains a full valuation allowance, any change in net deferred tax assets would be accompanied by a corresponding adjustment to the valuation allowance.