Company: PRTA
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0001559053-25-000031
Chunk: 24

Company: PROTHENA CORP PUBLIC LTD CO
Filing Date: 2025-08-04
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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. S. subsidiari es, federal and California tax credit carryforwards, capitalized R& D, share-based compensation, and other temporary differences.

As of each reporting date, the Company considers new evidence that could affect the future realization of DTAs by jurisdiction. Valuation allowances are established if there is uncertainty that a portion or all of the DTAs will not be realized. The ultimate realization of a DTA is dependent upon the generation of future taxable income of the proper character in appropriate jurisdictions to obtain benefit from the reversal of temporary differences and net operating loss carryforwards.

Management performed an assessment of its DTA in the three months ended June 30, 2025. Based upon the weight of available evidence, including the outcome of the Phase 3 AFFIRM-AL clinical trial for birtamimab and the announced corporate restructuring, including a substantial workforce reduction, management believes that it is not more likely than not the Company will realize the benefits of its federal DTAs. Accordingly, in the three months ended June 30, 2025, the Company recorded an expense to establish a valuation allowance of $ 44.9 res ulting in a full valuation allowance against its federal DTAs.

No provision for income tax ha s been recognized on undistributed earnings of the Company’s U. S. subsidiaries as the Company considers the U. S. earnings to be indefinitely reinvested.

The Company is subject to reviews and audits by the U. S. Internal Revenue Service (“ IRS”), the Irish Revenue Commissioners, and other taxing authorities from time to time. The IRS concluded its examination of the Company’s U. S. subsidiaries for tax year 2021, with no adjustments arising. There are no other ongoing income tax audits as of June 30, 2025. The Comp any periodically reviews its uncertain tax positions. The Company’s assessment is based on many factors, including any ongoing IRS audits. For the six months ended June 30, 2025, the Company’s assessment did not result in a material change in unrecognized tax benefits.

11. Restructuring

In June 2025, the Company commenced a restructuring plan following the Company’s May 23, 2025 announcement of its decision to discontinue further development of birtamimab.

The Company incurred aggregate restructuring charges of approximately $ 32.6 three months endedJune 30, 2025. Restructuring charges primarily consisted of employee termination benefits in connection with the reduction in force announced in June 2025 and contract termination costs