Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Income Taxes | |
| Income Taxes | 9. Income Taxes
Valuation Allowance The Company evaluated the need for a valuation allowance against its deferred tax assets and determined that in accordance with Accounting Standards Codification 740 Income Taxes (“ASC 740”), the objective negative evidence of a three-year cumulative pre-tax net loss, primarily due to the settlement of certain Nationwide Claims, as defined in Note 11, Commitments and Contingencies, prevented the use of the Company’s subjective positive evidence of expected future profitability in evaluating the realizability of its net deferred tax assets. As a result, a full valuation allowance was established against the Company’s deferred tax assets. As of June 30, 2025, the Company expects to remain in a three-year cumulative loss and has recorded a decrease in the valuation allowance of $0.2 million against its U.S. net deferred tax assets. Tax Receivable Agreements (“TRAs”) As of June 30, 2025, the Company’s total liability under the TRAs for the tax year ending December 31, 2024 is $0.8 million. This liability is expected to be settled in the fourth quarter of 2025. Uncertain Tax Positions As of June 30, 2025, the Company had no uncertain tax positions. |