INCOME TAXES |
9 Months Ended |
|---|---|
Sep. 30, 2025 | |
| INCOME TAXES | |
| INCOME TAXES |
NOTE 8 — INCOME TAXES The Company records income taxes for interim periods based on an estimated annual effective tax rate. The estimated annual effective rate is recomputed on a quarterly basis and may fluctuate due to changes in forecasted annual operating income, positive or negative changes to the valuation allowance for net deferred tax assets and changes to actual or forecasted permanent book to tax differences. During the three months ended September 30, 2025, the Company performed a valuation allowance analysis and determined that it is more likely than not that the Company’s net deferred tax assets will not be utilized and recorded a $59.9 million valuation allowance against the Company’s net deferred tax assets. As a result, the Company’s effective tax rates for the three and nine months ended September 30, 2025 were not meaningful. As of September 30, 2025, the Company has a valuation allowance of $92.6 million against all of its net deferred tax assets. The Company’s effective tax rate for the three and nine months ended September 30, 2024 was 11.0% and 11.3%, respectively. These effective tax rates differ from the federal statutory rate primarily due to the impact of nondeductible compensation and adjustments to the Company’s valuation allowance. On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was signed into law which, among other things, modified tax legislation affecting bonus depreciation rules and interest deductions. Specifically, the OBBBA provides for 100% bonus depreciation for property acquired and placed in service after January 19, 2025, and the use of earnings before income taxes, depreciation and amortization, rather than earnings before income taxes, with no phase-out for purposes of calculating the interest limitation for taxable years beginning after 2024. The Company calculated its quarterly tax provision following the new regulations set forth under the OBBBA. |