Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Income Taxes [Abstract] | |
| Income Taxes | 8. Income Taxes
The Company’s provision for income taxes consists of federal, foreign, and state taxes, as applicable, in amounts necessary to align the Company’s year-to-date tax provision with the effective rate that it expects to achieve for the full year. Each quarter the Company updates its estimate of the annual effective tax rate and records cumulative adjustments as necessary.
For the three and six months ended June 30, 2026, the Company recorded an income tax benefit of $103,025 and $127,615, respectively. The effective tax rate for the six months ended June 30, 2026 was 6.0% which differs from the statutory rate of 21% primarily due to limited tax benefit being provided on current pre-tax losses due to the Company’s valuation allowance position, differences in foreign tax rates from the U.S. statutory rate of 21%, and state and local taxes. The Company continues to conclude that its U.S. deferred tax assets are not realizable on a more-likely-than-not basis and maintains a full valuation allowance against such deferred tax assets.
For the three and six months ended June 30, 2025, the Company recorded an income tax provision of $72,007 and an income tax benefit of $1,988,058, respectively, which included a discrete tax benefit of $1,665,189 recorded during the three month period ended March 31, 2025, primarily related to a partial reversal of its valuation allowance, as the Acquisition created a source of future taxable income allowing for the recognition of certain deferred tax assets. The effective tax rate for the six months ended June 30, 2025 was 89.2%, which differs from the statutory rate of 21% primarily due to a reduction in the Company’s valuation allowance. The Company continues to conclude that its U.S. deferred tax assets are not realizable on a more-likely-than-not basis and maintains a full valuation allowance against such deferred tax assets. |