INCOME TAXES |
3 Months Ended |
|---|---|
Mar. 31, 2025 | |
| INCOME TAXES | |
| INCOME TAXES |
12.Income Taxes The quarterly provision for or benefit from income taxes is based on applying the estimated annual effective tax rate to the year-to-date pre-tax income (loss), adjusted for any discrete items. We update our estimate of our annual effective tax rate at the end of each quarterly period. For the three months ended March 31, 2025, we recorded $0.1 million of provision for income tax primarily related to estimated state taxes. We do not expect to owe federal income tax due to sufficient net operating loss carryforwards that were generated prior to the enactment of the Tax Cuts and Jobs Act, as well as significant research and development credit carryforwards. For the three months ended March 31, 2024, we did not record a provision for income taxes due to our pre-tax book loss. We continue to record a full valuation allowance on our deferred tax assets considering our cumulative losses in prior years. The realization of deferred tax assets is dependent if there are sufficient positive evidences that exists to conclude that it is more-likely-than-not that our deferred tax assets will be realized. This assessment requires significant judgment. In making this determination, all available evidence, both positive and negative, shall be considered to determine whether, based on the weight of that evidence, a valuation allowance for deferred tax assets is needed. If sufficient positive evidence may become available to allow us to reach a conclusion that a portion of the valuation allowance against the deferred tax assets may be reversed, the reversal would result in an income tax benefit for the quarterly and annual fiscal period in which we determine to release such valuation allowance. |