Company: CIFRW
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001819989-25-000005
Chunk: 83

Company: Cipher Mining Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 16
Chunk 83
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2.3)%(0.7)%162m limitations(20.3)%(5.3)%Stock compensation9.7 %(30.3)%Permanent differences(0.1)%(0.5)%Difference and changes in tax rates0.0 %0.0 %RTP and other2.5 %(16.2)%Change in valuation allowance(11.2)%16.1 %Income tax provision(0.7)%(15.9)%

F-35

CIPHER MINING INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Significant components of the Company’s deferred tax assets and liabilities were as follows:December 31, 2024December 31, 2023Deferred tax assets:Net operating loss carryforwards$25,521 $27,075 Share-based compensation2,117 2,109 Accruals and other temporary differences3,517 2,317 Intangible assets3,432 3,762 Lease liability5,113 4,622 Property and equipment, net5,440 — Non-deductible interest59 - Gross deferred tax assets45,199 39,885 Valuation allowance(13,461)(8,520)Net deferred tax assets31,738 31,365 Deferred tax liabilities:Right-of-use asset(5,305)(3,835)Derivatives(18,316)(19,669)Joint venture investments(9,430)(11,268)Bitcoin holdings(2,956)(434)Property and equipment, net— (1,365)Gross deferred tax liabilities(36,007)(36,571)Net deferred tax liabilities$(4,269)$(5,206)As required by ASC 740, management of the Company has evaluated the evidence bearing upon the realizability of its deferred tax assets. Based on the weight of available evidence, both positive and negative, management has determined that it is more likely than not that the Company will not realize the benefits of these assets. Accordingly, the Company recorded a valuation allowance of $13.5 million as of December 31, 2024. The valuation allowance increased by $4.9 million during the year ended December 31, 2024, primarily as a result of the increased tax basis over book basis in property and equipment and the net operating losses generated in the current year.As of December 31, 2024,