Quarterly report [Sections 13 or 15(d)]

INCOME TAXES

v3.25.2
INCOME TAXES
 6 Months Ended
Jun. 30, 2025
INCOME TAXES  
INCOME TAXES

NOTE 16. INCOME TAXES

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Three-Month Periods Ended

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Six-Month Periods Ended

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June 30, 

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June 30, 

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($ in thousands)

    

2025

    

2024

    

2025

    

2024

​

Loss before income taxes

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$

(3,736)

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$

(3,361)

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$

(7,809)

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$

(13,803)

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Provision (benefit) for Income

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60

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—

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60

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—

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Effective tax rate

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-1.6

%

 

0.0

%

 

-0.8

%

 

0.0

%

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The Company records income taxes using the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax effects attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and operating loss and tax credit carryforwards. The Company establishes a valuation allowance if management believes it is more likely than not that the deferred tax assets will not be recovered based on an evaluation of objective verifiable evidence. Management has considered the Company’s history of book and tax income and losses incurred since inception, and the other positive and negative evidence, and has concluded that it is more likely than not that the Company will not realize the benefits of the net deferred tax assets as of June 30, 2025.

As of June 30, 2025, the Company had no unrecognized tax benefits and does not anticipate any significant change to the unrecognized tax benefit balance.

On July 4, 2025, President Donald Trump signed the “One Big Beautiful Bill Act” (OBBBA) into law. Key corporate tax provisions include the restoration of 100% bonus depreciation, immediate expensing for domestic research and experimental expenditures, changes to interest limitations, and expanded compensation deductibility limits aggregation requirements. In accordance with ASC 740, the effects of the new tax law will be recognized in the period of enactment. The Company is currently evaluating the impact of the OBBBA on its financial statements.