Company: IWSH
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001214659-25-004885
Chunk: 318

Company: Wright Investors Service Holdings, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 7A
Chunk 318
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RIGHT INVESTORS’ SERVICE HOLDINGS, INC.

Notes to Consolidated Financial Statements

December 31, 2024

The deferred tax assets and liabilities are summarized as follows (in
thousands):

    Year ended December 31, 

    2024  
    2023 
  
    Deferred tax assets: 

    Net operating loss carryforwards 
    $5,530  
    $5,301 
  
    Unrealized loss on investments 
     93  
     87 
  
    Other 
     3  
     3 
  
    Gross deferred tax assets 
     5,626  
     5,391 
  
    Less: valuation allowance 
     (5,626) 
     (5,391)
  
    Deferred tax assets after valuation allowance 
     -  
     - 

    Net deferred tax assets 
    $-  
     - 

A valuation allowance is provided when it is more likely than not that
some portion of deferred tax assets will not be realized. The valuation allowance increased by approximately $235,000 and had decreased
by approximately $366,000 during the years ended December 31, 2024 and 2023, respectively. The increase in the valuation allowance
during the year ended December 31, 2024 was mainly due to increases in the net operating loss carryforward. The decrease in the valuation
allowance during the year ended December 31, 2023 was mainly attributable to decreases in the gross deferred tax asset related to the
expiration of a capital loss carryforward, net of increases in the net operating loss carryforward.

The Company files a consolidated
federal tax return with its subsidiaries. As of December 31, 2024, the Company has a federal net operating loss carryforward of approximately
$24,334,000, of which $15,177,000 expires from 2031 through 2037, and $9,157,000 does not expire. The Company
also has various state and local net operating loss carryforwards totaling approximately $8,179,000, which expire between 2025 and 2045.
The Company’s capital loss carryforward of approximately $2,371,000 expired during 2023.

    6.
    Capital Stock

The Company’s Board of Directors, without
any vote or action by the holders of common stock, is authorized to