INCOME TAXES |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | 10. INCOME TAXES The effective tax rate for the six months ended June 30, 2026 and 2025 was (7)% and (4)%, respectively. Our effective tax rate for the six months ended June 30, 2026 differs from the statutory tax rate primarily due to the recording of additional interest and penalties on an uncertain tax position as well as the continued recognition of additional valuation allowance. ASC Subtopic 740-10 clarified the accounting for uncertainty in income taxes by prescribing a recognition threshold and measurement attribute of the financial statement recognition and measurement of a tax position taken or expected to be taken within a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest benefit that reaches greater than 50% likelihood of being realized upon ultimate settlement. As of June 30, 2026 and December 31, 2025, we recorded approximately $7.7 million of gross tax liability for uncertain tax positions related to federal and state income tax returns filed. Additionally, we recognize accrued interest and penalties related to unrecognized tax benefits as components of our income tax provision. As of June 30, 2026 and December 31, 2025, the amount of interest accrued was approximately $0.5 million and $0.2 million, respectively, and the amount of penalties accrued was approximately $0.7 million and $0.5 million, respectively, which did not include the federal tax benefit of interest deductions.
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