INCOME TAXES |
9 Months Ended |
|---|---|
Sep. 30, 2026 | |
| 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. The Company’s effective tax rates for the three and nine months ended September 30, 2026 were (3.8)% and (8.1)%, respectively. These effective tax rates differ from the federal statutory rate primarily due to the impact of losses with no tax benefit, nondeductible compensation and adjustments to the Company’s valuation allowance. The Company’s effective tax rates for the three and nine months ended September 30, 2025 were not meaningful due to the Company recording a valuation allowance against its net deferred tax assets during that quarter. At each reporting date, the Company considers all available positive and negative evidence to evaluate whether its deferred tax assets are more likely than not to be realized. During 2025, the amount of the Company’s deferred tax assets considered realizable was reduced due to negative evidence that outweighed positive evidence supporting its ability to realize its deferred tax assets. The Company was able to support that a portion of its deferred tax assets would be realizable through the generation of income from future reversals of existing taxable temporary differences and recorded a valuation allowance against the remaining unsupported deferred tax assets. As of September 30, 2026 and December 31, 2025, the Company had a valuation allowance of $103.8 million and $100.3 million, respectively. |