Company: PRTA
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0001559053-25-000031
Chunk: 39

Company: PROTHENA CORP PUBLIC LTD CO
Filing Date: 2025-08-04
Form: 10-Q
Item: Part I, Item 2
Chunk 39
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30,                                                                     
                                                 2025                              2024                   $                   
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  (Dollars in thousands)                                                                                                      
  Provision for (benefit from) income taxes      $                     43,624      $         (4,240)      $           47,864  

_____

n/m = not meaningful

Income tax expense increasedby $46.8 million for the three months ended June 30, 2025 and increased by $47.9 million for the six months ended June 30, 2025, compared to the same periods in the prior year. T he increase in income taxes expense for the three and six months ended June 30, 2025, compared to the same periods in the prior year, was primarily due to recording a valuation allowance for the federal deferred tax assets primarily relating to share-based compensation and capitalized R& D related to Section 174 R& D Capitalization during the three and six months ended June 30, 2025.

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

On July 4, 2025, the United States enacted tax reform legislation through the One Big Beautiful Bill Act. As a result of the enactment of the legislation, the Company expects a decrease to its tax expense during the remainder of the year, primarily related to changes in the capitalization requirements of domestic research and development activities.

Liquidity and Capital Resources

Overview

                                  June 30,      December 31,  
                                      2025              2024  
 ──────────────────────────────────────────────────────────────
  Working capital                 $317,668          $436,911  
  Cash and cash equivalents       $371,435          $471,388  
  Total assets                    $399,066          $547,108  
  Total liabilities                $74,735           $60,182  
  Total shareholders’ equity      $324,331          $486,926  

Working capital was$317.7 million as ofJune 30, 2025, a decrease of $119.2 million from working capital of$436.9 million as ofDecember 31, 2024. This decrease in working capital during the six months ended June 30, 2025, was primarily attributable to ca sh used in operating activities of $99.7 million.

As