Company: PAMT
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001437749-25-025711
Chunk: 64

Company: PAMT CORP
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 64
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 unambiguous income tax laws. The Company recognizes interest and penalties related to uncertain income tax positions, if any, in income tax expense. During the six months ended  June 30, 2025 and 2024, the Company has not recognized or accrued any interest or penalties related to uncertain income tax positions.
    
   The Company’s effective income tax rates were 24.7% and 22.7% for the six months ended  June 30, 2025 and 2024, respectively. Our effective tax rate for the six months ended  June 30, 2025 differs from amounts computed by applying the United States federal statutory rates to pre-tax income primarily due to state income taxes.

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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, or corroborated by, observable market data. 
      
  Level 3:   Unobservable inputs that are supported by little or no market activity. 

   The Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.
    
   At  June 30, 2025, the following items are measured at fair value on a recurring basis:

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