Income Tax |
9 Months Ended |
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Sep. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Tax | Income Tax Our income tax benefit (expense) was $0 for the three and nine months ended September 30, 2026 and 2025. The Company recognizes a valuation allowance which reduces the deferred tax assets to the amount we believe these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize our deferred tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. As of September 30, 2026 and December 31, 2025, the value of the deferred tax asset, net of the valuation allowance, was $0. The Company’s effective tax rate for both 2026 and 2025 was 0% and differs from the statutory rate of 21%, primarily because the tax benefit associated with cumulative losses was fully offset by a valuation allowance against deferred tax assets. Tax Legislation Changes On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was signed into law, which makes permanent certain tax provisions enacted in 2017 as part of the Tax Cuts and Jobs Act, such as 100% bonus depreciation, and also restores or modifies other business tax rules, including domestic research or experimental cost expensing and the business interest expense limitation. The Company has elected under Section 174A(c) to continue capitalizing and amortizing domestic research or experimental expenditures. As a result of the full valuation allowance as of September 30, 2026, the OBBBA did not have an impact on the condensed consolidated financial statements as of and for the period ended September 30, 2026. The Company will continue to evaluate the impact of any additional guidance issued by the U.S. Department of the Treasury and the Internal Revenue Service.
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