INCOME TAXES |
9 Months Ended |
|---|---|
Sep. 30, 2026 | |
| INCOME TAXES | |
| INCOME TAXES | NOTE 11 INCOME TAXES The Company’s effective tax rates for the three months ended September 30, 2026 and 2025 were 11.8% and 0.00%, respectively. The primary driver of the variance from the federal statutory tax rate for the three months ended September 30, 2026 was discrete activity related to the taxable gain recognized on the Sevasemten Sale, offset by the release of valuation allowance, stock compensation adjustments, and benefit from the purchase of transferable federal income tax credits at a discount to their face amount. The primary driver of the variance from the federal statutory tax rate for the three months ended September 30, 2025 was valuation allowance activity. The Company’s effective tax rates for the nine months ended September 30, 2026 and 2025 were 12.8% and 0.00%, respectively. The primary driver of the variance from the federal statutory tax rate for the nine months ended September 30, 2026 was discrete activity related to the gain on the Sevasemten Sale, offset by the release of valuation allowance, stock compensation adjustments, and benefit from the purchase of transferable federal income tax credits at a discount to their face amount. The primary driver of the variance from the federal statutory tax rate for the nine months ended September 30, 2025 was valuation allowance activity. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carry back and carry forward periods), projected future taxable income and tax-planning strategies in making this assessment. For the three and nine months ended September 30, 2026, the Company does not believe it has sufficient positive evidence to conclude that its net remaining deferred tax assets are more likely than not to be realized. |