Note 13 — Income Taxes

The Company’s effective income tax rate was 0.0% and 0.0% for the three months ended September 30, 2026 and 2025, respectively. The Company’s effective income tax rate was 430.5% and 0.0% for the nine months ended September 30, 2026 and 2025, respectively. The Company recorded no income tax expense or benefit for the three months ended September 30, 2026 and an income tax benefit of $26.8 million for the nine months ended September 30, 2026, compared to nil for the three and nine months ended September 30, 2025.

Changes in the benefit from income taxes for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 are a result of the Company releasing the valuation allowance against its deferred tax assets.

During the period ended March 31, 2026, the Company released $25.6 million of its valuation allowance following the execution of an amendment to its license agreement with GTI Core on March 31, 2026, which transitioned the Company’s licensing fees to a fixed annual structure. This amendment significantly reduced uncertainty around the Company’s future taxable income projections. Based on sustained projected book and taxable income over the near term, management concluded that sufficient positive evidence existed to determine that its deferred tax assets are more-likely-than-not realizable, and accordingly released the valuation allowance during the first quarter of 2026. During the three months ended September 30, 2026, the Company did not record any income tax expense or benefit. The aggregate valuation allowance released was $26.8 million as of September 30, 2026. A valuation allowance continues to be maintained against certain state deferred tax assets for which apportionment factors do not support realization in the foreseeable future; the aggregate amount of such state deferred tax assets is not material. As a result, the income tax benefit recognized for the nine months ended September 30, 2026 is attributable to the release of the valuation allowance. Prior to the initial release, the Company maintained a full valuation allowance against its deferred tax assets due to uncertainty surrounding future income projections.

The utilization of the Company’s net operating loss (“NOL”) carryforwards is subject to limitations under Section 382 of the Internal Revenue Code of 1986, as amended and similar provisions in various state jurisdictions due to historical change in ownership provisions (“Ownership Changes”). These limitations may reduce the amount of NOLs available in future periods and may result in the expiration of certain NOLs before they can be utilized. During the period ended September 30, 2025, the Company completed an analysis of Ownership Changes, which had not previously been performed. The analysis identified multiple historical ownership changes that significantly limit the utilization of federal and state NOLs through the date of the most recent change on November 5, 2024, subjecting them to a minimal annual limitation. NOLs generated after November 5, 2024 are not currently subject to this limitation and may be available to offset future taxable income, although any future ownership changes could impose additional limitations.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted, introducing significant and wide-ranging changes to the U.S. tax system. The bill includes restoration of 100% accelerated tax depreciation on qualifying property including expansion to cover qualified production property. Another key point is the return to immediate expensing of domestic research and experimental expenditures (“R&E”) and accelerated tax deductions of R&E that were previously capitalized.  The legislation also reinstates EBITDA-based interest deduction for tax purposes. The impacts of the OBBBA are reflected in the Company’s results for the period ended September 30, 2026, and there was no material impact to the Company’s income tax benefit or effective tax rate.