v3.26.1
Income Taxes
 3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Line Items]  
Income Taxes
13. Income Taxes
The Company recorded no income tax provision for the three months ended March 31, 2026 and 2025, because of anticipated losses for the fiscal year 2026 and actual losses incurred in 2025.
The Company estimates its annual effective income tax rate in recording its quarterly provision for income taxes in the various jurisdictions in which it operates. The Company recorded no income tax expense for the three months ended March 31, 2026, because the Company expects to incur a tax loss in the current year. Similarly, no income tax expense was recognized for the year ended December 31, 2025.
The Company had a
net
deferred tax asset of $52.3 million and $45.7 
million at March 31, 2026 and December 31, 2025, respectively.
Realization
of the deferred tax asset is dependent, in part, on generating sufficient taxable income. The Company has recorded a
100% valuation allowance against the net deferred tax asset because future realization of these assets is not assured.
On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (“OBBBA”) into law. This act makes permanent key elements of the Tax Cuts and Jobs Act, including
 
100
%
bonus depreciation, domestic research cost expensing, and the business interest expense limitation. According to ASC 740,
Income Taxes
, the effects of changes in tax rates and laws on deferred tax balances must be recognized in the period in which the legislation is enacted. The Company has evaluated the provisions of the Act and determined that it did not have a material impact on the Company’s condensed consolidated financial statements through March 31, 2026, nor does the Company currently anticipate that the OBBBA will have a material impact on its consolidated financial statements in the future.
Authoritative guidance for uncertainty in income taxes requires that the Company recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an examination. The Company has reviewed its tax positions and determined there were no uncertain tax positions requiring recognition in the consolidated financial statements.
The Company has not recorded any interest or penalties associated with unrecognized tax benefits for the three months ended March 31, 2026, or for the year ended December 31, 2025.