Income Taxes (Tables)
|
6 Months Ended |
Jun. 30, 2026 |
| Income Tax Disclosure [Abstract] |
|
| Schedule of Income (Loss) before Income Tax Provision (Benefit) |
The components of income (loss) from continuing operations before income tax provision (benefit) consist of the following:
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|
|
|
|
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Six Months Ended June 30, |
|
|
Year Ended December 31, |
|
|
Year Ended December 31, |
|
(in thousands) |
|
2026 |
|
|
2025 |
|
|
2024 |
|
U.S. |
|
$ |
(5,093 |
) |
|
$ |
162,275 |
|
|
$ |
31,000 |
|
Foreign |
|
|
— |
|
|
|
— |
|
|
|
139 |
|
(Loss) income before income taxes |
|
$ |
(5,093 |
) |
|
$ |
162,275 |
|
|
$ |
31,139 |
|
|
| Schedule of Provision for Income Taxes |
The provision for income taxes for the six months ended June 30, 2026 and years ended December 31, 2025 and December 31, 2024:
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|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
Year Ended December 31, |
|
|
Year Ended December 31, |
|
(in thousands) |
|
2026 |
|
|
2025 |
|
|
2024 |
|
Current income taxes: |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
— |
|
|
$ |
454 |
|
|
$ |
14 |
|
State |
|
|
1,788 |
|
|
|
318 |
|
|
|
144 |
|
Foreign |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total current |
|
|
1,788 |
|
|
|
772 |
|
|
|
158 |
|
Deferred income taxes: |
|
|
|
|
|
|
|
|
|
Federal |
|
|
(154,929 |
) |
|
|
— |
|
|
|
— |
|
State |
|
|
(28,310 |
) |
|
|
— |
|
|
|
— |
|
Foreign |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total deferred |
|
|
(183,239 |
) |
|
|
— |
|
|
|
— |
|
(Benefit) provision for income taxes |
|
$ |
(181,451 |
) |
|
$ |
772 |
|
|
$ |
158 |
|
|
| Schedule of Components of Deferred Tax Assets and Liabilities |
Significant components of our deferred tax assets and liabilities are as follows:
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|
|
|
|
June 30, |
|
|
December 31, |
|
|
December 31, |
|
(in thousands) |
|
2026 |
|
|
2025 |
|
|
2024 |
|
Deferred Tax Assets: |
|
|
|
|
|
|
|
|
|
Net operating loss carryforwards |
|
$ |
44,153 |
|
|
$ |
74,889 |
|
|
$ |
64,729 |
|
Capitalized R&D |
|
|
34,768 |
|
|
|
47,187 |
|
|
|
30,532 |
|
Interest |
|
|
22,882 |
|
|
|
33,781 |
|
|
|
— |
|
Research and development credits |
|
|
31,202 |
|
|
|
32,698 |
|
|
|
19,046 |
|
Equity compensation |
|
|
15,669 |
|
|
|
14,812 |
|
|
|
13,000 |
|
Other, net |
|
|
11,271 |
|
|
|
11,863 |
|
|
|
21,229 |
|
Total deferred tax assets |
|
|
159,945 |
|
|
|
215,230 |
|
|
|
148,536 |
|
Deferred Tax Liabilities: |
|
|
|
|
|
|
|
|
|
Royalty monetization |
|
|
(26,246 |
) |
|
|
(19,670 |
) |
|
|
— |
|
Other, net |
|
|
(2,777 |
) |
|
|
(2,922 |
) |
|
|
(6,347 |
) |
Total deferred tax liabilities |
|
|
(29,023 |
) |
|
|
(22,592 |
) |
|
|
(6,347 |
) |
Net deferred tax assets |
|
|
130,922 |
|
|
|
192,638 |
|
|
|
142,189 |
|
Less: valuation allowance |
|
|
(24,283 |
) |
|
|
(192,638 |
) |
|
|
(142,189 |
) |
Deferred tax assets, net of valuation allowance |
|
$ |
106,639 |
|
|
$ |
— |
|
|
$ |
— |
|
|
| Schedule of Reconciliation of Taxes (Continuing Operations) at Federal Statutory Rate to Provision for (Benefit from) Income Taxes |
Upon adoption of ASU 2023-09, Improvements to Income Tax Disclosures, the reconciliation of taxes (continuing operations) at the federal statutory rate to our provision for (benefit from) income taxes for the six months ended June 30, 2026 and for year ended December 31, 2025 was as follows (in thousands, except for percentages):
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Six Months Ended |
|
|
Year Ended |
|
(in thousands) |
|
June 30, 2026 |
|
|
December 31, 2025 |
|
Income taxes at statutory rates |
|
$ |
(1,070 |
) |
|
|
21.00 |
% |
|
$ |
34,078 |
|
|
|
21.00 |
% |
State income tax, net of federal benefit(1) |
|
|
(28,556 |
) |
|
|
560.63 |
% |
|
|
319 |
|
|
|
0.20 |
% |
Foreign tax effects |
|
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|
|
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|
|
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|
|
|
|
Australia |
|
|
|
|
|
|
|
|
|
|
|
|
Valuation allowance |
|
|
— |
|
|
|
— |
|
|
|
(939 |
) |
|
|
(0.58 |
)% |
Deferred tax write-off |
|
|
— |
|
|
|
— |
|
|
|
939 |
|
|
|
0.58 |
% |
Effect of changes in tax laws or rates enacted in the current period |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Effect of cross-border tax laws |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Tax Credits |
|
|
|
|
|
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|
|
|
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|
Federal R&D credit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Change in valuation allowance |
|
|
(148,602 |
) |
|
|
2917.48 |
% |
|
|
(36,022 |
) |
|
|
(22.20 |
)% |
Nontaxable or nondeductible items |
|
|
|
|
|
|
|
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|
|
|
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Other |
|
|
16 |
|
|
|
-0.31 |
% |
|
|
53 |
|
|
|
0.28 |
% |
Equity compensation(2) |
|
|
(4,298 |
) |
|
|
150.26 |
% |
|
|
403 |
|
|
|
— |
|
Executive compensation |
|
|
(2,114 |
) |
|
|
-24.36 |
% |
|
|
2,202 |
|
|
|
1.36 |
% |
Transaction Costs |
|
|
1,724 |
|
|
|
-33.84 |
% |
|
|
— |
|
|
|
— |
|
Other |
|
|
— |
|
|
|
— |
|
|
|
18 |
|
|
|
0.01 |
% |
Change in unrecognized tax benefits |
|
|
1,449 |
|
|
|
-28.44 |
% |
|
|
(279 |
) |
|
|
(0.17 |
)% |
Income tax (benefit) expense |
|
$ |
(181,451 |
) |
|
|
3562.42 |
% |
|
$ |
772 |
|
|
|
0.48 |
% |
(1)State taxes in California, Pennsylvania, Utah and Massachusetts made up the majority (greater than 50%) of the tax effect in this category. (2)Equity compensation for non-covered employees is net of windfall tax benefits for 2026 and 2025, respectively. The reconciliation of taxes at the federal statutory rate to our provision for (benefit from) income taxes for the year ended December 31, 2024 in accordance with the guidance prior to the adoption of ASU 2023-09 was as follows:
|
|
|
|
|
|
|
Year Ended December 31, |
|
(in thousands) |
|
2024 |
|
Expected income tax benefit at federal statutory tax rate |
|
$ |
6,539 |
|
State income taxes, net of federal benefit |
|
|
(574 |
) |
Permanent items |
|
|
82 |
|
Equity compensation |
|
|
804 |
|
Non-deductible compensation |
|
|
2,188 |
|
Research credits |
|
|
(68 |
) |
Other |
|
|
36 |
|
Change in the valuation allowance |
|
|
(8,849 |
) |
Income tax expense |
|
$ |
158 |
|
|
| Schedule of Activity Related to Unrecognized Tax Benefits |
The following table summarizes the activity related to our unrecognized tax benefits:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
Year Ended December 31, |
|
|
Year Ended December 31, |
|
(in thousands) |
|
2026 |
|
|
2025 |
|
|
2024 |
|
Balance at the beginning of the year |
|
$ |
8,719 |
|
|
$ |
6,911 |
|
|
$ |
5,016 |
|
Increases (decreases) related to prior year tax positions |
|
|
1,658 |
|
|
|
(2 |
) |
|
|
(4 |
) |
Increase related to current year tax positions |
|
|
3,097 |
|
|
|
1,810 |
|
|
|
1,899 |
|
Balance at the end of the year |
|
$ |
13,474 |
|
|
$ |
8,719 |
|
|
$ |
6,911 |
|
|