Income Taxes |
9 Months Ended |
|---|---|
Sep. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Note 9 – Income Taxes
Our income tax benefits as stated reflect tax benefits recorded by Nora Pharma, the Company’s wholly owned Canadian subsidiary. Deferred tax benefits generated in the United States and Canada are offset by valuation allowances by jurisdiction. The Company maintains a full valuation allowance against its deferred tax assets because of cumulative losses and insufficient positive evidence of future taxable income.
Deferred tax assets are regularly reviewed for recoverability by jurisdiction and valuation allowances are established based on historical and projected future taxable income or losses and the expected timing of reversals of existing temporary differences. The Company has recorded valuation allowances against all of its deferred tax assets of September 30, 2026, and the Company expects to maintain these valuation allowances until there is sufficient evidence that future earnings can be achieved, which is uncertain at this time.
The Company operates through two Canadian subsidiaries that are subject to Canadian federal and provincial income taxes.
The Company recognizes a tax benefit from an uncertain tax position only when it is more likely than not that the position will be sustained upon examination, based on its technical merits. The amount recognized is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company has not recognized any material uncertain tax benefits in its financial statements.
On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted in the United States. Among other provisions, the OBBBA made permanent 100% bonus depreciation and domestic research-cost expensing and amended the rules under Sections 951A and 250 for taxable years beginning after December 31, 2025. The Company completed its assessment of the provisions applicable to its operations. The OBBBA did not have a material effect on the Company's income tax expense for the three and nine months ended September 30, 2026, primarily because the Company maintains a full valuation allowance against its net deferred tax assets and had no current-period Section 951A inclusion.
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