Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

v3.26.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Loss Before Taxes
The components of loss before income taxes were as follows:
Year Ended December 31,
2025 2024
(in thousands)
Domestic $ (321,061) $ (305,991)
Foreign —  — 
Total $ (321,061) $ (305,991)
Schedule of Components of Income Tax Expense
The components of income tax expense were as follows:
Year Ended December 31,
2025 2024
(in thousands)
Current income taxes:
Federal $ 246  $ 1,217 
State 3,277  4,260 
Total current income taxes 3,523  5,477 
Deferred income taxes:
Federal (1,753) (835)
State 255  (255)
Total deferred income taxes (1,498) (1,090)
Total income tax expense $ 2,025  $ 4,387 
Schedule of Reconciliation Between the Income Tax Provision Computed By Applying The Statutory Federal Rate and the Actual Provision
A reconciliation of the statutory federal income tax to the Company’s provision for income taxes (benefit) after the adoption of ASU 2023-09 are summarized as follows (in thousands, except for percentages):
Year Ended December 31,
Amount Percentage
U.S. federal statutory tax rate $ (67,423) 21.0  %
State and local income taxes, net of federal income tax effect (1)
150  —  %
Changes in valuation allowance 29,522  (9.2) %
Nontaxable or nondeductible items
   Losses not subject to tax $ 34,926  (10.9) %
  Other $ 797  (0.2) %
Changes in unrecognized tax benefits $ 3,410  (1.1) %
Other reconciling items $ 643  (0.2) %
Provision expense (benefit) for taxes and effective tax rate $ 2,025  (0.6) %
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(1) State taxes in Oregon made up the majority (greater than 50 percent) of the tax effect in this category.
As previously disclosed for the year ended December 31, 2024, a reconciliation of the statutory federal income tax to the Company’s provision for income taxes (benefit) prior to the adoption of ASU 2023-09 is as follows (in thousands):
Year Ended December 31,
2024
Tax at federal statutory rate $ (64,258)
Non-controlling interest and nontaxable income 36,984 
Change in valuation allowance 29,929 
Investment in P3 LLC (796)
Return to provision 2,006 
Deferred tax adjustments (21)
Other reconciling items 543 
Total $ 4,387 
Effective tax rate (1.4) %
Schedule of Deferred Income Tax Assets and Liabilities
Deferred income taxes result from differences in the recognition of amounts for tax and financial reporting purposes, as well as operating loss and tax credit carryforwards.
Significant components of the Company’s deferred income tax assets and liabilities are as follows:
December 31,
2025 2024
(in thousands)
Deferred tax assets:
Investment in P3 LLC $ 38,157  $ 32,438 
Net operating loss carryforwards 51,647  33,087 
Accrued liabilities 234  181 
Goodwill and identifiable intangible assets 1,308  1,712 
Section 163j interest limitation 11,531  5,104 
Other deferred tax assets 386  459 
Total deferred tax assets 103,263  72,981 
Less: valuation allowance (100,417) (71,457)
Net deferred tax assets 2,846  1,524 
Deferred tax liabilities:
Operating lease, right-of-use assets (201) (410)
Other deferred tax liabilities (56) (24)
Total deferred tax liabilities (257) (434)
Net deferred tax asset $ 2,589  $ 1,090 
Deferred tax assets are included in other long-term assets in the Company’s consolidated balance sheets.
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
2025 2024
(in thousands)
Balance at January 1 $ 4,285  — 
Additions based on tax positions taken in a prior year 2,135  — 
Additions based on tax positions related to the current year 335  4,285 
Balance at December 31 $ 6,755  $ 4,285 
Schedule of Cash Flow, Supplemental Disclosures
The amount of income taxes paid (net of refunds received) are presented below (in thousands). Jurisdictions where income taxes paid exceeded five percent of total income taxes paid (net of refunds received) are disclosed separately.
Year ended
December 31, 2025
$1,443
Federal $ 1,443 
State
   California (129)
   Oregon 125 
   Other — 
Foreign — 
Total income taxes paid (net of refunds received) $ 1,439 
Deferred Tax Asset Valuation Allowance Rollforward
The balances and activity related to the valuation allowance were as follows:
Amount
(in thousands)
Balance at December 31, 2023 $ (46,370)
   Additions
 (28,119)
   Reductions
 3,032 
Balance at December 31, 2024
 (71,457)
   Additions
 (28,960)
   Reductions
 — 
Balance at December 31, 2025
 $ (100,417)