Income Taxes |
9 Months Ended |
|---|---|
Aug. 31, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes For the three and nine months ended August 31, 2026, the Company recorded an income tax provision of $13.6 million and $13.3 million, respectively. For the three and nine months ended August 31, 2025, the Company recorded an income tax provision of zero and $0.8 million, respectively. Deferred income taxes reflect the net tax effects of loss and credit carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Realization of the deferred tax assets is dependent upon future taxable income, the amount, if any, and timing of which are uncertain. The Company has historically generated losses and has established a valuation allowance against its deferred tax assets as of August 31, 2026 and 2025 due to the uncertainty of realizing future tax benefits from its net operating loss (NOL) carryforwards and other deferred tax assets. The income tax provision for the three and nine months ended August 31, 2026, was primarily attributable to estimated California income tax on the $700.0 million upfront payment received under the Roche Collaboration Agreement. California has suspended the use of NOL carryforward deductions and as a result, the Company expects to incur California income tax for the year ended November 30, 2026. The Company files income tax returns in the United States and in various states. In January 2019, the California Franchise Tax Board (FTB) initiated an examination of the Company’s California tax return for tax years ending in 2015, 2016, 2017 and 2018. During the year ended November 30, 2021, the FTB issued proposed audit assessments related to revenue sourcing and R&D credits. The Company did not agree with the FTB’s assessments and challenged the assessments. In March 2026, the Company and the FTB reached a favorable agreement under which the Company will pay a portion of the proposed assessment. As a result, the Company recognized a $271,000 tax benefit. All of the Company’s tax years will remain open for examination by the federal and state authorities for three and four years, respectively, from the date of the utilization of any NOLs. On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted in the United States. The OBBBA includes several significant tax provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The Company will no longer be required to capitalize its domestic research and experimental costs under Section 174 of the Internal Revenue Code beginning with the tax year ending November 30, 2026. The enactment of OBBBA did not have a material impact on the condensed financial statements.
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