Company: FOACW
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001828937-25-000009
Chunk: 276

Company: Finance of America Companies Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 3
Chunk 276
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 effects of temporary differences between the carrying value of assets and liabilities for financial reporting purposes and the amounts reported for income tax purposes. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences attributable to those temporary differences and the expected benefits of net operating losses and carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.Significant components of the Company’s deferred tax assets and deferred tax liabilities are as follows (in thousands):

157

Finance of America Companies Inc.Notes to Consolidated Financial Statements

December 31, 2024December 31, 2023Deferred tax assetsLoss carryforwards$41,410 $37,272 Research and development tax credits1,482 1,446 Earnout awards5,025 5,099 TRA836 1,161 Other177 316 Gross deferred tax assets48,930 45,294 Valuation allowance(38,454)(42,365)Deferred tax assets, net of valuation allowance10,476 2,929 Deferred tax liabilitiesInvestment in FOA Equity 13,095 3,137 Gross deferred tax liabilities13,095 3,137 Net deferred tax liability$(2,619)$(208)The federal and state NOL carryforwards amount to $164.1 million and $145.6 million at December 31, 2024 and December 31, 2023, respectively. It is expected that these NOL’s will not expire.A valuation allowance is provided when it is more likely than not that a portion or all of a deferred tax asset will not be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and recent results of operations. As of December 31, 2024, due to current year operating results and forecasted taxable income or losses, management has maintained their assessment that the existing taxable temporary differences that will reverse through the course of ordinary business will not more-likely-than-not generate sufficient taxable income to utilize the current attributes. Therefore, a valuation allowance for the deferred tax asset in excess of deferred tax liabilities has been maintained. Management also determined that the future sources of taxable income from reversing temporary differences that comprise the investment in FOA Equity deferred tax liability would only be fully realized upon sale of FOA