Income Taxes |
6 Months Ended |
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Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | NOTE 9 - Income Taxes
The Company accounts for income taxes in accordance with ASC 740, Income Taxes. The provision for income taxes is determined using the discrete method. This is because the Company has determined that it is not able to reliably forecast its annual earnings which results in an inability to calculate its annual effective tax rate.
Under the discrete method, the Company is calculating its income tax expense for the interim period based only on actual year-to-date results. This is an appropriate approach when the estimated annual effective tax rate method would not provide a reliable estimate of the quarterly income tax provision.
For the six months ended June 30, 2026 and 2025, the Company recorded deferred income tax benefit of $649 thousand and deferred income tax expenses of $1 thousand, respectively.
The effective tax rate for six months ended June 30, 2026 and June 30, 2025 was (4.89%) and (0.3%), respectively. The effective tax rate differs from the U.S. Federal statutory rate primarily due to recording a valuation allowance against the deferred tax assets in the U.S and foreign jurisdictions along with US and foreign permanent differences including changing fair value of derivative warrant liabilities and stock compensation along with partial release of the valuation allowance due to acquisition accounting.
The Company continues to evaluate the realizability of its deferred tax assets and has maintained a valuation allowance on its deferred tax assets as of June 30, 2026 for all jurisdictions other than Australia.
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