Company: AIP
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001628280-25-048977
Chunk: 276

Company: Arteris, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 276
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 (expense), net

Three Months Ended September 30,Change20252024$%(dollars in thousands)Other income (expense), net$636 $775 $(139)(18)%

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

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Loss from equity method investment

Three Months Ended September 30,Change20252024$%(dollars in thousands)Loss from equity method investment$484 $580 $(96)(17)%

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

Provision for (benefit from) income taxes

Three Months Ended September 30,Change20252024$%(dollars in thousands)Provision for (benefit from) income taxes$380 $(92)$472 (513)%

The provision for income taxes was an expense of $0.4 million for the three months ended September 30, 2025 compared to a benefit of $0.1 million for the three 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 One Big Beautiful Bill Act of 2025 (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.

30

Comparison of the Nine Months Ended September 30, 2025 and 2024

Revenue

Nine Months Ended September 30,Change20252024$%(dollars in thousands)Licensing, support and maintenance$46,319 $38,799 $7,520 19 %Variable royalties4,074 2,965