Company: INSP
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001609550-25-000053
Chunk: 88

Company: Inspire Medical Systems, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 8
Chunk 88
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 of future book income, if any, the amount and timing of which are uncertain. Based on available objective evidence, we believe it is more likely than not that the deferred tax assets are not recognizable and will not be recognizable until we have sufficient evidence to support their recognition. Accordingly, the net deferred tax assets have been fully offset by a valuation allowance. 

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Table of ContentsInspire Medical Systems, Inc. Notes to Consolidated Financial Statements (unaudited) (Table amounts in thousands, except share and per share amounts)

On July 4, 2025, the enactment of the One Big Beautiful Bill Act ("OBBBA") into law, marked a significant legislative development, resulting in substantial modifications to the U.S. tax code. The OBBBA influences multiple facets of taxation, including, but not limited to, bonus depreciation, the current-year expensing of research and development costs, and international tax regulations. The income taxes reported for the three months ending September 30, 2025 incorporates all relevant tax provisions of this new law.We had $0.1 million of tax payable on unrecognized tax positions as of both September 30, 2025 and December 31, 2024. We do not anticipate significant changes to our unrecognized tax positions in the next 12 months.We file income tax returns in all applicable jurisdictions. The tax years from 2022 to 2024 remain open for examination by the tax authorities to which we are subject.

8. Segment Reporting and Revenue Disaggregation

We operate our business as one operating segment. An operating segment is defined as a component of an enterprise for which separate discrete financial information is available and evaluated regularly by the chief operating decision maker ("CODM") in deciding how to allocate resources and in assessing performance. Our CODM is the Company's President, Chief Executive Officer, and Chair of the Board of Directors. Reportable segment information is consistent with how management reviews the business, makes investing and resource allocation decisions and assesses operating performance. Our segment revenues are derived from the sales of our product, the Inspire system, to hospitals and ambulatory surgery centers in the U.S. and in select countries in Europe and the Asia Pacific region. We do not have any intra-entity sales or transfers.Our CODM uses consolidated net income as the measure of profit or loss. Our CODM assesses performance for the segment and allocates resources and monitors budget versus actual results using consolidated net income and operating income. The monitoring of budget versus actual results are used in establishing management's