Recent Accounting PronouncementsAccounting pronouncements adopted by the Company
In December 2023, the FASB issued Accounting Standards Update (“ASU”) No. 2023-09, which requires
additional disclosures around the income tax rate reconciliation and income taxes paid. The new standard is
effective for our reporting on Form 10-K for the year ended December 31, 2025. An entity may apply the
amendments in this ASU prospectively by providing the revised disclosures for the period ending December 31,
2025 and continuing to provide the pre-ASU No. 2023-09 disclosures for the prior periods, or may apply the
amendments retrospectively by providing the revised disclosures for all periods presented. We adopted the new
standard on a retrospective basis with the additional required disclosures included in Note 3—Income Taxes.
Accounting pronouncements not yet adopted by the Company
In November 2024, the FASB issued ASU No. 2024-03, which requires more detailed disclosures about
specified categories of expenses, including employee compensation, within certain expense captions presented
on the face of the income statement and to disclose selling expenses. ASU No. 2024-03 is effective for our
annual reporting on Form 10-K for the year ended December 31, 2027 and within interim periods beginning on
our Form 10-Q for the quarter ended March 31, 2028. The new standard may be applied prospectively or
retrospectively, and early adoption is permitted. We expect ASU No. 2024-03 to only impact our disclosures with
no impacts to our results of operations, cash flows, and financial condition. We are currently evaluating when we
will adopt the ASU.
In November 2024, the FASB issued ASU No. 2024-04, which clarifies the requirements for determining
whether certain settlements of convertible debt instruments should be accounted for as induced conversions or
extinguishment of convertible debt. ASU No. 2024-04 is effective for our annual reporting on Form 10-K for the
year ended December 31, 2026. The new standard may be applied prospectively or retrospectively, and early
adoption is permitted. We intend to adopt ASU No. 2024-04 for the year ended December 31, 2026. The ASU
adoption will only impact our results of operations and financial condition to the extent we have an induced
conversion or extinguishment of our convertible debt.
In September 2025, the FASB issued ASU No. 2025-06, which updates the accounting for internal use
software. The ASU updates the criteria that must be met for entities to begin capitalizing software costs. ASU No.
2025-06 is effective for the Company starting January 1, 2028. The new standard may be adopted prospectively,
retrospectively, or via modified prospective transition method, and early adoption is permitted. We are currently
evaluating ASU No. 2025-06 and its impact on our results of operations, cash flows, and financial condition and
evaluating when we will adopt the ASU.