XML 28 R14.htm IDEA: XBRL DOCUMENT v3.25.3
Income Taxes
 9 Months Ended
Sep. 30, 2025
Income Taxes [Abstract]  
INCOME TAXES

NOTE 7 – INCOME TAXES

 

The Company records income taxes using the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax effects attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and operating loss and tax credit carryforwards. The Company establishes a valuation allowance if management believes it is more likely than not that the deferred tax assets will not be recovered based on an evaluation of objective verifiable evidence. Management has considered the Company’s history of book and tax income and losses incurred since inception, and the other positive and negative evidence, and has concluded that it is more likely than not that the Company will not realize the benefits of the net deferred tax assets as of September 30, 2025.

 

The Company recorded income tax benefit (expense) of approximately (22.3)% of income before income taxes and 5.0% of loss before income taxes for the three-month periods ended September 30, 2025 and 2024, respectively.

 

   For the three months ended
September 30,		 
   2025   2024 
Effective income tax rate   (22.3)%   5.0%

 

The Company recorded income tax expense of approximately 2.4% and 2.6% of loss before income taxes for the nine-month periods ended September 30, 2025 and 2024, respectively.

 

    For the nine months ended
September 30,		  
    2025     2024  
Effective income tax rate     (2.4 )%     (2.6 )%

 

As of September 30, 2025, the Company had no unrecognized tax benefits and does not anticipate any significant change to the unrecognized tax benefit balance.  

Enactment of the “One Big Beautiful Bill Act”

 

On July 4, 2025, President Donald Trump signed into law the reconciliation tax bill, commonly referred to as the “One Big Beautiful Bill Act” (the “OBBBA”). The OBBBA contains several changes to corporate taxation, including the restoration of 100% bonus depreciation, the introduction of new Section 174A permitting immediate expensing of domestic research and experimental expenditures, modifications of Section 163(j) interest expense limitations, updates to rules governing global intangible low-taxed income and foreign-derived intangible income, amendments to energy credit provisions, and the expansion of Section 162(m) aggregation requirements.

 

Under U.S. GAAP, the effects of changes in tax laws are recognized in the period in which the new law is enacted. The Company analyzed the impact of the OBBBA for this Quarterly Report and determined the impact to be immaterial, primarily due to the Company’s full valuation allowance.