Note 13 - Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Notes to Financial Statements | |
| Income Tax Disclosure [Text Block] |
note 13 — Income Taxes
The Company recognized federal, state and foreign income tax expense of $54 thousand and $0 for the six months ended June 30, 2025 and 2024, respectively. The effective tax rates for the six months ended June 30, 2025 and 2024, were (1.42)% and 0.00%. The difference between the Company’s effective tax rate and the U.S. statutory tax rate of 21% was due to a valuation allowance recorded on the Company’s net U.S. deferred tax assets and valuation allowances recorded on deferred tax assets in foreign jurisdictions where the Company operates. The Company evaluates the realizability of the deferred tax assets on a quarterly basis and establishes a valuation allowance when it is more likely than not that all or a portion of a deferred tax asset may not be realized. The Company evaluates its tax positions and recognizes tax benefits that, more-likely-than-not, will be sustained upon examination based on the technical merits of the position. The Company did have any unrecognized tax benefits as of June 30, 2025, or December 31, 2024.
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law and contains important legislation that affects corporations. The Company is currently evaluating the impact of the OBBBA on its income tax provision and overall tax position. The Company will continue to assess the implications of the legislation and incorporate any required changes in future reporting periods as appropriate.
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