Company: GRCE
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001140361-25-041804
Chunk: 15

Company: Grace Therapeutics, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 8
Chunk 15
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      (1,419) 
      (374) 
      (943) 
      (1,771) 

      Interest income, net
     
      (172) 
      (182) 
      (375) 
      (407) 

      Tax provisions (benefits)
     
       -  
      (852) 
       -  
      (1,576) 

      Segment and consolidated loss
     
      938 
      3,432 
      4,301 
      6,049 
   
     1)   Other general and administrative expenses include depreciation, travel, and other administrative costs.  
    
    2)   Other segment income includes change in fair value of derivative warrant liabilities and foreign exchange (loss)/gain.  

   9. Income taxes
   
   The provision for income taxes and the effective income tax rates were as follows: 

      Three months ended

      Six months ended

      September 30, 2025

      September 30, 2024

      September 30, 2025

     September 30, 2024

      Provision for income taxes

       -  

      (852) 

       -  

      (1,576) 

      Effective income tax rate

      0.0%

      19.9%

      0.0%

      20.7%

   The variance in effective tax rates for the three and six months ended September 30, 2025 and 2024 is primarily attributable to the Company’s partial valuation allowance applied to its net domestic deferred tax assets.

   As of September 30, 2025, the Company had a partial valuation allowance against its net domestic deferred tax assets, for which realization cannot be considered more likely than not at this time. Management assesses the need for the valuation allowance on a quarterly basis. In assessing the need for a valuation allowance, the Company considers all positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and past financial performance.

   On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring