Company: PAMT
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001437749-25-033356
Chunk: 61

Company: PAMT CORP
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 61
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 Company recorded accelerated depreciation deductions and recognized previously disallowed interest expense, which collectively increased current-year deductible expenses and are expected to result in a projected federal net operating loss position for the year ending  December 31, 2025. The enactment of the OBBBA resulted in a material impact  to the Company’s current and deferred income tax balances reflected on the condensed consolidated balance sheet and income statement for the quarter ended  September 30, 2025. The net operating loss partially offset previously recorded deferred tax balances, resulting in a net decrease of $8.5 million in deferred tax liabilities as of  September 30, 2025 compared to  December 31, 2024.
    
   The effects of the OBBBA have been reflected in the Company’s current and deferred tax calculations as of  September 30, 2025, in accordance with ASC 740-10-45-15, which requires the Company to recognize the impact of enacted changes in tax laws on both current tax expense and deferred tax assets and liabilities in the period of enactment, and to provide sufficient disclosure so that users of the financial statements understand the effect of such changes on the Company’s financial position and results of operations.

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   NOTE J: FAIR VALUE OF FINANCIAL INSTRUMENTS
   The Company’s financial instruments consist of cash and cash equivalents, marketable equity securities, accounts receivable, trade accounts payable, and borrowings.
    
   The Company follows the guidance for financial assets and liabilities measured on a recurring basis. This guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date and also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that  may be used to measure fair value:
    
     Level 1:   Quoted market prices in active markets for identical assets or liabilities. 
       
  Level 2:   Inputs other than Level 1 inputs that are either directly or indirectly observable such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable; or other inputs not directly observable, but derived principally from,