Company: BLND
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0001855747-25-000017
Chunk: 84

Company: Blend Labs, Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 8
Chunk 84
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4 and disallowed interest expense.At December 31, 2024, the Company had net operating loss (“NOL”) carryforwards for federal and state income tax purposes of approximately $616.3 million and $618.1 million, respectively, available to reduce future taxable income. The federal net operating losses generated before 2018 will begin to expire in 2028. The federal net operating losses generated in and after 2018 may be carried forward indefinitely. The state NOL carryforwards vary by state and begin to expire in 2025.At December 31, 2024, the Company had $25.7 million of federal research credit carryforwards which will begin to expire in 2033 and state research credit carryforwards of $13.3 million which have no expiration date.Utilization of the net operating loss and tax credit carryforwards may be subject to annual limitations due to the ownership change limitation provided by the Internal Revenue Code of 1986, as amended, and similar state provisions. Events which may cause limitations in the amount of the NOLs that the Company may use in any one year include, but are not limited to, a cumulative ownership change of more than 50% over a three-year period. Any annual limitations may result in the expiration of NOL and credits before they are able to be utilized.

116

Blend Labs, Inc.Notes to Consolidated Financial Statements

As of December 31, 2024, the Company had $11.7 million of unrecognized tax benefits, none of which, if recognized, would impact the effective tax rate. The Company’s policy is to include interest and penalties related to unrecognized tax benefits within the provision for income taxes. Interest and penalties were not significant during the years ended December 31, 2024, 2023 and 2022. The Company does not expect any material changes to its unrecognized tax benefits within the next twelve months.The following table reflects the changes in the Company’s unrecognized tax benefits:Year Ended December 31,202420232022(in thousands)Beginning Balance$10,040 $8,228 $5,948 Gross increases—tax positions in prior periods275 191 — Gross increases—tax positions in current periods1,362 1,621 2,300 Gross decreases—tax positions in prior periods— — (20)Ending balance$11,677 $10,040 $8,228 The Company