Quarterly report [Sections 13 or 15(d)]

INCOME TAXES

v3.25.3
INCOME TAXES
 9 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES

7. INCOME TAXES

 

On July 4, 2025, the President signed into law significant federal tax legislation, H.R. 1 (the “Tax Reform Act of 2025”). The Act introduces numerous changes to U.S. corporate income tax law, including, among others:

  1) the reinstatement of 100% bonus depreciation for qualified property placed in service after 2024;
  2) the immediate expensing of domestic research and experimental (R&E) expenditures;
  3) modifications to the limitation on business interest expense under Section 163(j);
  4) increased expensing thresholds under Section 179;
  5) changes to the international tax regime, including revisions to the GILTI and FDII provisions; and
  6) expanded limitations on the deductibility of executive compensation under Section 162(m).

 

Most provisions are effective for tax years beginning after December 31, 2024, subject to specified transition rules and exceptions.

 

While the Tax Reform Act of 2025 introduces significant U.S. income tax provisions, given the Company’s ongoing losses and historical NOLs, the Company does not anticipate significant change to its U.S. federal cash tax payments for the remainder of 2025 and near future thereafter, until it reaches profitability. Therefore, the Tax Reform Act of 2025 does not have material impact on the Company’s condensed consolidated financial statements, with exception of the related disclosures to the valuation allowance for the deferred tax assets to be recorded in the consolidated financial statements as of December 31, 2025.