Quarterly report [Sections 13 or 15(d)]

Income Taxes

v3.26.1
Income Taxes
 3 Months Ended
Mar. 31, 2026
Income Taxes  
Income Taxes

14. Income Taxes

The Company recorded an immaterial income tax expense for the three months ended March 31, 2026, primarily related to Swiss income taxes of HilleVax. As of March 31, 2026, the Company maintained a full valuation allowance against its remaining net deferred tax assets.

On July 4, 2025, H.R. 1, Public Law 119-21, was enacted in the U.S., introducing significant changes to U.S. income tax law, including provisions affecting the deductibility and capitalization of research and development expenditures, business interest deductions, and the international tax framework. The enactment of this legislation did not have a material impact on the Company’s condensed consolidated financial statements for the quarter ended March 31, 2026.

The Company had a total of $5.9 million of gross unrecognized tax benefits as of March 31, 2026, none of which would affect the effective tax rate upon realization, as it had a full valuation allowance against its net deferred tax assets. The reversal of related deferred tax assets will be offset by a valuation allowance, should any of these uncertain tax positions be favorably settled in the future.

The Company does not expect its unrecognized tax benefits to change significantly over the next twelve months. The Company will recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. As of March 31, 2026, the Company had not accrued interest or penalties related to uncertain tax positions.

​