Company: DARE
Filing Date: 2025-04-24
Form Type: ARS
Source: 0001401914-25-000018
Chunk: 299

Company: Dare Bioscience, Inc.
Filing Date: 2025-04-24
Form: ARS
Chunk 299
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 million and $112.3 million was established at December 31, 2024 and 2023, respectively, to offset the net deferred tax assets. When and if management determines that it is more likely than not that the Company will be able to utilize the deferred tax assets prior to their expiration, the valuation allowance may be reduced or eliminated. The increase in valuation allowance of approximately $2.4 million and $8.0 million for the years ended December 31, 2024 and 2023, respectively, is primarily related to an increase in net operating losses and R&D credits generated during the year and changes in state tax rates. The Company has U.S. federal net operating loss, or NOL, carryforwards available at December 31, 2024 of approximately $315.2 million of which $1.1 million begin expiring in 2025 unless previously utilized and $139.8 million that do not expire. The Company has state NOL carryforwards of $298.4 million that begin expiring in 2031 unless previously utilized. The Company has U.S. federal research credit carryforwards available at December 31, 2024 of approximately $11.6 million that begin expiring in 2027 unless previously utilized. The Company has state research credit carryforwards of $2.5 million of which $0.2 million begin expiring in 2027 unless previously utilized. These federal and state research and development credits are subject to a 20% reserve under FASB ASC 740. The difference between federal and state NOL carryforwards is primarily due to previously expired state NOL carryforwards. Utilization of the NOL and research and development credit carryforwards may be subject to a substantial annual limitation under Sections 382 and 383 of the Internal Revenue Code of 1986 due to ownership change limitations that have occurred previously or that could occur in the future. These ownership changes may limit the amount of NOL and research and development credit carryforwards that can be utilized annually to offset future taxable income and tax, respectively. The Company has not yet completed an evaluation of ownership changes. To the extent an ownership change occurs, the NOL and credit carryforwards and other deferred tax assets may be subject to limitations. F-23

A reconciliation of the beginning and ending amount of uncertain tax benefits is as follows (in thousands): Years Ended December 31, 2024 2023 Beginning uncertain tax benefits $ 2,617