Company: GIGGU
Filing Date: 2025-11-12
Form Type: S-4
Source: 0001193125-25-277896
Chunk: 653

Company: GigCapital7 Corp.
Filing Date: 2025-11-12
Form: S-4
Chunk 653
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F-58

The Company has evaluated the available positive and negative evidence supporting the realization of its gross deferred tax assets, including its cumulative losses, and the amount and timing of future taxable income, and has determined it is more likely than not that historical U.S. federal and state deferred tax assets will not be realized. Accordingly, the Company recorded a valuation allowance as of December 31, 2024 against these deferred tax assets. The Company recorded a change in valuation allowance for the period from July 8, 20254 (inception) to December 31, 2024 of $37,740.

As of December 31, 2024, the Company continues to provide a valuation allowance against federal and state deferred tax assets that are not expected to be realizable. The Company continues to evaluate the realizability of deferred tax assets and the related valuation allowance. If the Company’s assessment of the deferred tax assets or the corresponding valuation allowance were to change, the Company would record the related adjustment to income tax expense (benefit) during the period in which the determination is made. Accordingly, the U.S. net deferred tax assets have been fully reduced by the valuation allowance at December 31, 2024.

As of December 31, 2024, the Company had federal net operating loss (“NOL”) carryforwards of approximately $132,897, which will begin to expire in 2044 for federal tax purposes. As of December 31, 2024, the Company had state NOL carryforwards of approximately $129,966, which will begin to expire in 2044 on various dates for state tax purposes.

IRC Section 382 imposes limitations on the use of NOL carryovers when the stock ownership of one or more 5% shareholders (shareholders owning 5% or more of the Company’s outstanding capital stock) has increased on a cumulative basis by more than 50 percentage points. As of December 31, 2024, the Company has not completed an analysis whether an ownership change occurred under Section 382 or whether there have been multiple ownership changes since the Company’s formation through the date these financial statements were available to be issued. If the Company has experienced an ownership change at any time since its formation, utilization of the NOL carryforwards would be subject to an annual limitation under Section 382 of the IRC Code. Any limitation from past or future ownership changes that may be contemplated or executed in the future, may result in expiration of