Company: AIP
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001628280-25-048977
Chunk: 36

Company: Arteris, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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 income (expense), net decreased by $0.4 million, or 17%, to $2.1 million for the nine months ended September 30, 2025, from $2.6 million for the nine months ended September 30, 2024. The decrease in interest and other income (expense), net was primarily due to lower interest rates on cash balances and lower interest income earned on our available-for-sale investments.

Loss from equity method investment

Nine Months Ended September 30,Change20252024$%(dollars in thousands)Loss from equity method investment$2,079 $2,064 $15 1 %

Loss from equity method investment remained relatively flat for the nine months ended September 30, 2025 compared to the nine months ended September 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. 

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Provision for income taxes

Nine Months Ended September 30,Change20252024$%(dollars in thousands)Provision for income taxes$1,494 $1,253 $241 19 %

Provision for income taxes for the nine months ended September 30, 2025 was $1.5 million, compared to $1.3 million for the nine months ended September 30, 2024. The increase in our income tax expense was due to changes in current year foreign withholding taxes, impact of losses in jurisdictions which have full valuation allowances and impacts of the OBBBA. 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, OBBBA. In accordance with GAAP, we accounted for the tax effects of changes in tax law in the period of enactment which is the third quarter of calendar year 2025, and the impact was not material to our consolidated financial statements.

Liquidity and Capital Resources 

Since inception, we have financed operations primarily from payments received from our customers, the net proceeds from the sale of our common stock in the IPO as well as the net proceeds from the private issuance of our convertible preferred stock and common stock. As of September 30, 2025, we had $39.0 million in cash and cash equivalents and