Company: BLLN
Filing Date: 2025-10-07
Form Type: S-1
Source: 0001193125-25-233697
Chunk: 375

Company: BillionToOne, Inc.
Filing Date: 2025-10-07
Form: S-1
Chunk 375
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The Company’s actual tax expense differed from the statutory federal income tax expense using a tax rate of 21% for the years ended December 31, 2023 and 2024 primarily due to state income taxes, nondeductible expenses, research and development tax credits, change in fair value of term loan, and the change in valuation allowance. As of December 31, 2023 and 2024, the Company had a net operating loss carryforwards of $148.7 million and $154.9 million for federal purposes, and $73.8 million and $78.6 million for state and city purposes, respectively. If not utilized, these carryforwards will begin to expire in 2036 for federal, and 2026 for state and city purposes. Federal net operating losses incurred in 2018 and in future years may be carried forward indefinitely, but the deductibility of such federal net operating losses is limited to 80% of U.S. federal taxable income. Some but not all states conform to the federal treatment of net operating losses. As of December 31, 2023, the Company had research and development tax credit carryforwards for federal tax purposes of $2.6 million and state research and development tax credit carryforwards of $1.4 million. As of December 31, 2024, the Company had research and development tax credit carryforwards for federal tax purposes of $4.1 million and state research and development tax credit carryforwards of $2.1 million. The federal research and development tax credit carryforwards will expire at various dates beginning in the year 2041. The Company’s state research and development tax credit carryforwards do not expire. Utilization of the net operating loss (“NOL”) carryforwards and credits may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended, and similar state provisions. The annual limitation may result in the expiration of NOL carryforwards and credits before utilization. Current laws impose substantial restrictions on the utilization of NOL carryforwards and credits in the event of an “ownership change” within a three-year period as defined by the Internal Revenue Code Section 382 (“Section 382”). If there should be an ownership change, the Company’s ability to utilize its NOL carryforwards and credits could be limited. The Company has not performed a