Covista Inc.

7. Income Taxes

Our effective tax rate from continuing operations was 20.1% and 20.6% in the three months ended September 30, 2026 and 2025, respectively. The effective tax rate for the three months ended September 30, 2026 decreased compared to the prior year period primarily due to an increase in U.S. tax benefits on foreign-derived income, partially offset by a decrease in tax benefits on stock-based compensation. The income tax provisions reflect the U.S. federal tax rate of 21% adjusted for taxes related to U.S. tax on foreign earnings, limitation of tax benefits on certain executive compensation, the rate of tax applied by state and local jurisdictions, the rate of tax applied to earnings outside the U.S., tax incentives, tax credits related to research and development expenditures, changes in unrecognized tax benefits, and tax benefits on stock-based compensation.

RUSM and RUSVM each have agreements with their respective domestic governments that exempt them from local income taxation. RUSM has an exemption in Barbados until 2039 and RUSVM has an exemption in St. Kitts until 2038.