Company: QXO-PB
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001628280-25-009626
Chunk: 32

Company: QXO, Inc.
Filing Date: 2025-03-04
Form: 10-K
Item: Item 16
Chunk 32
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 the result of temporary differences between the bases of assets and liabilities for financial reporting and income tax purposes. Deferred tax assets and liabilities are comprised of the following:As of(in thousands)December 31, 2024December 31, 2023Deferred tax assets:Net operating loss carry forwards$656 $1,417 Long lived assets1,645 210 Share based payments1,416 5 Accrued expenses98 84 Allowance for doubtful accounts154 135 Other6 61 Deferred tax assets3,975 1,912 Deferred tax liabilities:Long lived assets(1,236)(128)Deferred tax liabilities(1,236)(128)Net deferred tax asset2,739 1,784 Less: Valuation allowance(136)(340)Net deferred tax assets$2,603 $1,444 The company regularly assesses the need for a valuation allowance of its deferred tax assets, and to the extent it is determined that an adjustment is needed, such adjustment will be recorded in the period that the determination is made.As of December 31, 2024 and 2023, the Company had U.S. federal net operating loss carryforwards of $3.4 million and $5.8 million, respectively. The federal net operating loss carryforwards will expire at various amounts beginning in the year ending December 31, 2026, if not utilized. Utilization of the net operating losses remaining as of December 31, 2024 is subject to an annual limitation provided for in Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”) and any annual limitation could result in the expiration of net operating loss carryforwards before utilization. Approximately $3.4 million of federal net operating losses are currently limited from use under such provisions the annual limitation could result in the expiration of net operating loss carryforwards before utilization. The Company has a valuation allowance recorded for the deferred tax asset related to the net operating losses that are more-likely-than-not to expire unutilized. 

As of December 31, 2024 and 2023, the Company had state net operating loss carryforwards of $0 and $1.7 million, respectively. 

NOTE 12 – RELATED PARTY TRANSACTIONS

Upon the closing of the Equity Investment, pursuant to the execution of the Investment Agreement, the Company reimbursed JPE for certain transactional, market research and employee costs related to establishing the foundation