Note 18 - Income Taxes

9 Months Ended

Sep. 30, 2025

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note 18 – Income Taxes

During the third quarter of 2025, the Company recorded an income tax benefit primarily related to the treatment of domestic research and experimental expenditures under Internal Revenue Code Section 174. In connection with the enactment of the One Big Beautiful Bill Act (“OBBBA”), the Company elected not to capitalize certain domestic research and experimental costs on its 2024 federal income tax return. This election resulted in an increase in deductible expenses for prior periods and a corresponding reduction in taxable income, which generated the income tax benefit of $3.2 million recognized in the current quarter. The Company continues to evaluate the impact of the OBBBA on its overall tax position, including related elections and accounting method changes.

For the three months and nine months ended September 30, 2025, we realized an income tax benefit of $3.2 million from the reversal of deferred taxes due to the intangible asset impairment charge of $16.10 million. During the three and nine months ended September 30, 2024, we recorded income tax benefit of $0.2 million and income tax expense of $0.1 million, respectively, related to the tax on our estimated taxable income for the year, primarily due to the gain on debt extinguishment (See the section titled, “Note 12 – Restructured Debt Liability”).