Company: AIP
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001667011-25-000029
Chunk: 365

Company: Arteris, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 2
Chunk 365
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, 2024.

Interest expense

Three Months Ended June 30,Change20252024$%(dollars in thousands)Interest expense$(42)$(68)$26 (38)%

Interest expense remained relatively flat for the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

Other income (expense), net

Three Months Ended June 30,Change20252024$%(dollars in thousands)Other income (expense), net$786 $865 $(79)(9)%

Other income (expense), net remained relatively flat for the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

30

Loss from equity method investment

Three Months Ended June 30,Change20252024$%(dollars in thousands)Loss from equity method investment$780 $725 $55 8 %

Loss from equity method investment remained relatively flat for the three months ended June 30, 2025 compared to the three 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

Three Months Ended June 30,Change20252024$%(dollars in thousands)Provision for income taxes$846 $975 $(129)(13)%

The provision for income taxes was $0.8 million for the three months ended June 30, 2025 compared to $1.0 million for the three 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.

On July 4, 2025, the U.S. enacted a budget reconciliation package commonly referred to as the One Big Beautiful Bill Act of 2025 (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