Income Taxes |
3 Months Ended |
|---|---|
Mar. 31, 2025 | |
| Income Taxes [Abstract] | |
| Income Taxes | Note 11 — Income Taxes
The Company’s tax provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items arising in that quarter. In each quarter, management updates the estimate of the annual effective tax rate, and any changes are recorded in a cumulative adjustment in that quarter. The quarterly tax provision and quarterly estimate of the annual effective tax rate are subject to significant volatility due to several factors, including management’s ability to accurately predict the portion of income (loss) before income taxes in multiple jurisdictions, and the effects of acquisitions and the integration of those acquisitions.
There was income tax provision or benefit recorded for the three months ended March 31, 2025. For the three months ended March 31, 2024, the Company recorded an income tax benefit of approximately $127,000. This tax benefit was related to the Company’s deferred foreign taxes resulting from the Proteomedix acquisition and yielded an effective tax rate of 21.3% for Proteomedix for the three months ended March 31, 2024.
The Company has incurred net operating losses for all of the periods presented and has not reflected any benefit in the accompanying condensed consolidated financial statements for its U.S. net operating loss carryforwards and only a partial benefit for its Swiss net operating loss carryforwards due to uncertainty around utilizing these tax attributes within their respective carryforward periods. The Company has recorded a full valuation allowance against its U.S. deferred tax assets as it is not more likely than not that such assets will be realized in the near future. As of December 31, 2024, all deferred tax liabilities, related to intangibles, on the books have been reversed creating an income tax benefit. All remaining deferred tax assets and deferred tax liabilities have a full valuation allowance booked against them therefore there were no additional income tax benefits during the three months ended March 31, 2025.
The Company’s policy is to recognize interest expense and penalties related to income tax as income tax expense. For the three months ended March 31, 2025 and 2024, the Company has recognized any interest or penalties related to income taxes. |