Company: AIP
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001667011-25-000029
Chunk: 281

Company: Arteris, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 281
---
$1,504 $1,801 $(297)(16)%

Other income (expense), net decreased by $0.3 million, or 16%, to $1.5 million for the six months ended June 30, 2025, from $1.8 million for the six months ended June 30, 2024. The decrease in interest and other income (expense), net was primarily related to foreign currency exchange, as well as lower interest rates on cash balances and lower interest income earned on our available-for-sale investments.

Loss from equity method investment

Six Months Ended June 30,Change20252024$%(dollars in thousands)Loss from equity method investment$1,595 $1,484 $111 7 %

Loss from equity method investment remained relatively flat for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. Such losses are expected to continue in the near future. Transchip's ability to continue its operations is dependent upon raising additional capital, which it is currently expected to be able to raise. If adequate funding is not obtained, an impairment charge may be recorded.

Provision for income taxes

Six Months Ended June 30,Change20252024$%(dollars in thousands)Provision for income taxes$1,114 $1,345 $(231)(17)%

Provision for income taxes for the six months ended June 30, 2025 was $1.1 million, compared to $1.3 million for the six months ended June 30, 2024. The decrease in our income tax expense was due to a change in the forecasted geographic mix of worldwide earnings which are taxed at different statutory tax rates, the impact of losses in jurisdictions which have full valuation allowances, and changes in current year foreign withholding taxes. Foreign withholding taxes are generally assessed on gross revenue generated, rather than pre-tax income, in certain countries in which the Company does not file an income tax return. 

33

On July 4, 2025, the U.S. enacted a budget reconciliation package commonly referred to as the OBBBA, which contains a broad range of tax reform provisions affecting businesses, including the permanent reinstatement of bonus depreciation on qualified property and full expensing of domestic research and experimental expenditures. We are currently evaluating the full effects of the legislation on our consolidated financial statements. As the legislation was signed into law after the close of our second quarter, the impacts are