INCOME TAXES |
3 Months Ended |
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Sep. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | INCOME TAXES For the three months ended September 30, 2026, and 2025, the Company recognized income tax benefits of $6.2 million and $7.2 million, respectively, representing effective tax rates of 23.4% and 19.1%, respectively. The differences from the federal statutory tax rate to the effective tax rates for the three months ended September 30, 2026, and 2025, primarily related to state income taxes and the recording of a valuation allowance for federal and state tax attributes that the Company does not expect to utilize prior to expiration, non-deductible warrant mark-to-market adjustment, and excess officer and stock-based compensation. As of September 30, 2026, the Company has a valuation allowance of $35.7 million for deferred tax assets related to certain federal and state specific net operating losses, Internal Revenue Code Section 163(j) carryforwards, and credits, as it is more likely than not that those assets will not be realized. The Company is no longer in a three-year cumulative loss position based on pretax income adjusted for permanent differences. However, in reassessing the valuation allowance, management concluded it still cannot reliably forecast future taxable income beyond the reversal of existing taxable temporary differences. The Company’s valuation allowance analysis focuses on the expected future reversals of existing taxable temporary differences and does not include forecasted taxable income from future operations. Aside from the certain deferred tax assets related to federal and state credits and other attributes noted above where a valuation allowance has been established, the Company continues to recognize its deferred tax assets as of September 30, 2026 as it believes it is more likely than not that the net deferred tax assets will be realized. The Company will continue to evaluate the realizability of its deferred tax assets.
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