Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Income Taxes | 15. INCOME TAXES An income tax benefit of $15.3 million was recognized for the three and six months ended June 30, 2025, resulting from a partial release of U.S. federal and state valuation allowances, which was recorded as a discrete item in the second quarter due to the deferred tax liabilities related to identifiable intangibles from the Lightsynq Acquisition. Income tax expense, due to the Company's international operations, was less than $0.1 million for the three and six months ended June 30, 2024. The effective tax rate for each period differs from the statutory rate primarily as a result of not recognizing a deferred tax asset for losses due to having a valuation allowance against deferred tax assets. The realization of tax benefits of deferred tax assets is dependent upon future levels of taxable income, of an appropriate character, in the periods the items are expected to be deductible or taxable. Based on the available objective evidence, the Company does not believe it is more likely than not that the net deferred tax assets will be realizable. Accordingly, the Company has provided a valuation allowance against the net deferred tax assets as of June 30, 2025, and December 31, 2024. The Company intends to maintain the remaining valuation allowance until sufficient positive evidence exists to support a reversal of, or decrease in, the valuation allowance. On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was signed into law. This legislation contains a broad range of tax reform provisions affecting businesses. The Company is assessing the legislation and its effect on the consolidated financial statements. |