Income Tax Provision |
6 Months Ended |
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Jun. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Tax Provision | INCOME TAX PROVISION The Company files federal, state and foreign income tax returns in jurisdictions with varying statutes of limitations. The Company uses the asset and liability method to determine its provision for income taxes. The Company’s provision for income taxes in interim periods is computed by applying the discrete method and is based on financial results through the end of the interim period. The Company determined that using the discrete method is more appropriate than using the annual effective tax rate method. The Company is unable to estimate the annual effective tax rate with sufficient precision to use the effective tax rate method, which requires a full-year projection of income. The effective tax rate for the three months ended June 30, 2025 and 2024 was (4.4%) and (3.3%). The effective tax rate for the six months ended June 30, 2025 and 2024 was (4.0%) and (2.1%). The Company’s worldwide effective tax rate differs from the US statutory rate of 21% primarily due to valuation allowances. The Company's federal, state, local and foreign tax returns are routinely subject to review by various taxing authorities. The Company has not accrued any interest and penalties related to unrecognized income tax benefits as a result of offsetting net operating losses. However, if required, the Company will recognize interest and penalties within income tax expense and within the related tax liability. On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act ("OBBBA"). Key elements of the Tax Cuts and Jobs Act are made permanent under the OBBBA, including 100% bonus depreciation, domestic research cost expensing and the business interest expense limitation. FASB ASC 740, "Income Taxes", requires the effects of changes in tax rates and laws on tax balances to be recognized in the period in which the legislation is enacted. As the date of enactment is after June 30, 2025, there is no financial impact as of and for the six-month period ended June 30, 2025. The Company is currently evaluating the impact of the OBBBA on its consolidated financial statements.
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