Company: PRTA
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001559053-25-000044
Chunk: 40

Company: PROTHENA CORP PUBLIC LTD CO
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 40
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, the One Big Beautiful Bill Act (“ OBBBA”) was signed into law. The OBBBA includes a broad range of U. S. tax reform measures, including, among other provisions, the immediate expensing of U. S. research and development expenditures. In accordance with ASC 740, the Company has recognized the effects of the new tax law in the period of enactment. As the Company maintains a full valuation allowance on its deferred tax assets, the legislation does not have a material impact on our consolidated financial statements for the period ended September 30, 2025.

Income tax benefit decreased by $0.5 million for the three months ended September 30, 2025, compared to the same period in the prior year. The current quarter income tax benefit is primarily related to changes in the capitalization requirements of U. S. research and development activities enacted in the OBBBA. Income tax expense increased by $48.3 million for the nine months ended September 30, 2025, compared to the same period in the prior year, primarily due to recording a valuation allowance for the federal deferred tax assets, mainly relating to share-based compensation and R& D expenditure capitalized in previous years.

No tax benefit has been recorded related to tax losses recognized in Ireland or the U. S. and any deferred tax assets for those losses are offset by a valuation allowance.

Liquidity and Capital Resources

Overview

                                  September 30,      December 31,  
                                           2025              2024  
 ───────────────────────────────────────────────────────────────────
  Working capital                      $288,538          $436,911  
  Cash and cash equivalents            $330,843          $471,388  
  Total assets                         $352,628          $547,108  
  Total liabilities                     $57,639           $60,182  
  Total shareholders’ equity           $294,989          $486,926  

Working capital was$288.5 million as ofSeptember 30, 2025, a decrease of $148.4 million from working capital of$436.9 million as ofDecember 31, 2024. This decrease in working capital during the nine months ended September 30, 2025, was primarily attributable to ca sh used in operating activities of $140.3 million.

As of September 30, 2025, we had $330.8 million in cash a nd cash equivalents. Based on our current business plans, we believe that our existing cash and