Income taxes |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income taxes [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income taxes |
10. Income taxes
The provision for income taxes and the effective income tax rates were as follows:
The Company recorded a $13,533 impairment charge
during the quarter. The Company recorded the tax effects associated with the
impairment charge as a discrete item during the period; however, the impairment
and related valuation allowance adjustment had no material impact on income tax
expense or the effective tax rate. The Company recorded an income tax
(expense)/benefit of approximately $0 and $0 from continuing operations for the
three months ending June 30, 2026, and 2025, respectively. The Company’s
effective tax rate for the three months ended June 30, 2026, and 2025 was 0%
and 0% respectively.
As of June 30, 2026, the Company had a partial valuation allowance against its net domestic deferred tax assets, for which realization cannot be considered more likely than not at this time. Management assesses the need for the valuation allowance on a quarterly basis. In assessing the need for a valuation allowance, the Company considers all positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and past financial performance.
On July 4, 2025, the One Big Beautiful Bill Act
(“OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions,
such as the permanent extension of certain expiring provision of the Tax Cuts
and Jobs Act, modification to the international tax framework and the
restoration of favorable tax treatment for certain business provisions. The
legislation has multiple effective dates, with certain provisions effective in
2025 and other implemented through 2027. Under OBBBA, the Company is permitted
to fully deduct domestic research expenditures under Section 174A. This
provision accelerates tax deductions but does not create permanent tax differences;
therefore, the impact is timing related only and does not materially affect the
Company's financial statements.
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