Company: MSTR
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000950170-25-021814
Chunk: 186

Company: Strategy Inc
Filing Date: 2025-02-18
Form: 10-K
Item: Item 16
Chunk 186
---
. The Company repatriated foreign earnings and profits of $6.5 million during 2024 and $20.3 million during 2023.  As of December 31, 2024, the Company has not indefinitely reinvested any of its undistributed foreign earnings and has recorded a deferred tax liability of $4.0 million on undistributed foreign earnings related to foreign withholding tax and U.S. state income taxes.

101

Deferred income taxes reflect the net tax effects of the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities (in thousands) were as follows for the periods indicated: 

        December 31,

        2024

        2023

        Deferred tax assets, net:

        Net operating loss carryforwards
         
        $
        231,063

        $
        727

        Tax credit carryforwards

        6,287

        1,841

        Intangible assets, including capitalized R&D

        88,362

        57,410

        Deferred revenue

        902

        1,481

        Accrued compensation

        5,204

        5,882

        Share-based compensation expense

        14,042

        30,345

        Digital asset impairment losses

        1,165,831

        652,280

        Interest expense carryforward

        24,974

        11,627

        Lease liability

        16,734

        18,197

        Other

        1,854

        4,699

        Deferred tax assets before valuation allowance

        1,555,253

        784,489

        Valuation allowance

        (494
        )

        (1,427
        )

        Deferred tax assets, net of valuation allowance

        1,554,759

        783,062

        Deferred tax liabilities:

        Prepaid expenses and other

        8,278

        3,681

        Property and equipment

        373

        1,062

        Deferred tax on undistributed foreign earnings

        3,962

        2,923

        Right of use asset

        17,246

        18,180

        Total deferred tax liabilities

        29,859

        25