v3.26.3
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:

 

 

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:

 

 

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:

 

 

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):

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

     Federal R&D credit

 

 

 

 

 

 

 

 

 

 

 

 

Change in valuation allowance

 

 

(148,602

)

 

 

2917.48

%

 

 

(36,022

)

 

 

(22.20

)%

Nontaxable or nondeductible items

 

 

 

 

 

 

 

 

 

 

 

 

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:

 

 

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