Recent Accounting Pronouncements (Notes)

12 Months Ended

Dec. 31, 2025

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

RECENT ACCOUNTING PRONOUNCEMENTS

From time to time, the Financial Accounting Standards Board (“FASB”) or other standards setting bodies issue new accounting pronouncements. Updates to the FASB's accounting standards are communicated through issuance of an Accounting Standards Update (“ASU”). The Company considers the applicability and impact of all ASUs on our business and financial results.

Recently adopted accounting pronouncements

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU requires disclosure of specific categories in the rate reconciliation and additional information for reconciling items that meet a quantitative threshold. The amendment also includes other changes to improve the effectiveness of income tax disclosures, including further disaggregation of income taxes paid for individually significant jurisdictions. We adopted this guidance prospectively for the year ending December 31, 2025. See Note 6, Income Taxes, for more information.

Recently issued accounting pronouncements not yet adopted

In December 2025, the FASB issued ASU 2025‑10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities. This ASU establishes comprehensive guidance on the recognition, measurement, and presentation of monetary and tangible nonmonetary government grants received by business entities. The standard excludes certain arrangements from its scope, such as income tax credits, government guarantees, below‑market loans, and transfers of intangible assets or services. This new guidance requires entities to apply a recognition and measurement model largely aligned with principles in IAS 20, while incorporating targeted improvements specific to U.S. GAAP. The standard also introduces expanded disclosure requirements, including information about the nature of government grants, significant terms and conditions, and the financial statement line items affected. ASU 2025-10 is effective for public business entities for annual periods

beginning after December 15, 2028, and for all other entities for annual periods beginning after December 15, 2029, with early adoption permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements, however based on preliminary review, we do not expect the adoption to have a material impact on our financial position, results of operations, or cash flows. We also note that we maintain an existing accounting policy for government grants, which is included in Note 1, Description of Business and Basis of Presentation.

In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income-Expense disaggregation disclosures (Subtopic 220-40) Disaggregation of Income Statement Expenses. This ASU requires disclosure of specified information about certain costs and expenses in the notes to financial statements. This ASU is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Adoption of this ASU should be applied on a prospective basis. Early adoption is permitted. We are currently evaluating the impact that this guidance will have on the disclosures within our financial statements, and expect to adopt this ASU for the year ending December 31, 2027.

During 2025, there were no other new accounting standards issued, or that are pending issuance, that are expected to have a material impact on our consolidated financial statements upon adoption.