Company: PCRX
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001396814-25-000041
Chunk: 70

Company: Pacira BioSciences, Inc.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 16
Chunk 70
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 credit carryforwards to offset taxable income or tax will be limited. Such ownership changes were triggered by the initial acquisition of the Company’s stock in 2007 as well as cumulative ownership changes arising as a result of the completion of the Company’s initial public offering, other financing transactions and the Flexion Acquisition in 2021. As a result of these ownership changes, the Company has $451.2 million of federal NOLs subject to annual limitations and are available as follows: $32.5 million will become available in 2025, $28.3 million in 2026, $6.9 million in 2027 and thereafter.In accordance with ASC Topic 740, the Company establishes a valuation allowance for deferred tax assets that, in its judgment, are not more-likely-than-not realizable. These judgments are based on projections of future income—including tax-planning strategies—by individual tax jurisdictions. In each reporting period, the Company assesses the likelihood that its deferred tax assets will be realized and determines if adjustments to its valuation allowance are appropriate. The Company had a net decrease in its valuation allowance of $0.7 million in the year ended December 31, 2024 and a net increase of $2.6 million for the year ended December 31, 2023. The $0.7 million net decrease in the current year valuation allowance is primarily 

Pacira BioSciences, Inc.  |  2024 Annual Report on Form 10-K  |  Page F-38

Table of ContentsPACIRA BIOSCIENCES, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

related to foreign net deferred tax assets. The Company continues to maintain a full valuation allowance against foreign net deferred tax assets since it is more-likely-than-not the tax benefit related to the foreign losses are not realizable. In 2024, the Company recorded a $2.7 million net increase to unrecognized tax benefits, or UTBs of which a $1.5 million increase is related to tax credit and filing positions taken during the year, and a $1.2 million increase related to prior year tax credit and filing positions. The Company’s UTB liability at December 31, 2024 was $9.4 million. The change in the Company’s UTBs for the year ended December 31, 2024 is summarized as follows (in thousands):UnrecognizedTax BenefitBalance at December 31, 2022