Company: BLND
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001855747-25-000041
Chunk: 24

Company: Blend Labs, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 24
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0.7 million in charges related to the 2025 plan. Refer to Note 16, Assets Held for Sale and Discontinued Operations.The reconciliation of the restructuring liability balances is as follows:(In thousands)Restructuring liability as of December 31, 2023$31 January 2024 Plan charge1,086 September 2024 Plan charge1,442 Settlements(2,484)Restructuring liability as of December 31, 2024$75 2025 Plan charge719 Settlements(357)Restructuring liability as of March 31, 2025$437 

13. Income Taxes

The provision for income taxes was less than $0.1 million for the three months ended March 31, 2025 and 2024, respectively. The effective tax rate for the three months ended March 31, 2025 and 2024 was (0.5)% and (0.2)%, respectively. The effective tax rates differ from the federal statutory rate primarily due to a valuation allowance on the Company’s deferred tax assets.The Company reassessed the ability to realize deferred tax assets by considering the available positive and negative evidence. As of March 31, 2025, the Company concluded that its net deferred tax assets are not more-likely-than-not to be realized and maintained a full valuation allowance against such net deferred tax assets.As of March 31, 2025, the Company files tax returns in the U.S. federal and various state jurisdictions. Due to the Company’s U.S. net operating loss carryforwards, its income tax returns generally remain subject to examination by federal and most state tax authorities. Beginning in 2022, the Company’s subsidiary in India files income tax returns in India which are subject to examination by local tax authorities. This subsidiary is currently under examination by the tax authorities for the fiscal years ended March 31, 2023 and 2022.

14. Net Loss Per Share

The Company has three classes of authorized common stock for which voting rights differ by class. The Company computes net loss per share using the two-class method required for multiple classes of common stock. The Company’s Series A Preferred Stock is considered a participating security for purposes of applying the two-class method when calculating earnings per share in periods of net income.  Under the two-class method, net income (loss) attributable to common stockholders for the period is allocated between shares of common stock and participating securities based upon their respective rights to receive