Company: OPGN
Filing Date: 2025-08-21
Form Type: 10-K
Source: 0001829126-25-006628
Chunk: 787

Company: OPGEN INC
Filing Date: 2025-08-21
Form: 10-K
Item: Item 3
Chunk 787
---
 )%

    (11.6
    )%
  
    Adjustment on deferred foreign intangible

    (30.8
    )%

    0.0
    %
  
    Foreign income tax

    1.2
    %

    0.0
    %
  
    Lost or expired NOLs

    5.4
    %

    (7.0
    )%
  
    Blended state tax rate change effect on deferrals

    (10.7
    )%

    0.0
    %
  
    Change in valuation allowance

    10.1
    %

    (13.2
    )%
  
    Other

    (2.1
    )%

    0.0
    %
  
    Total 

    1.5
    %

    0.0
    %

Management followed the guidance in ASC 740, which states that “a cumulative loss in recent years is a significant piece of negative evidence that is difficult to overcome” and concluded that the Company’s net deferred tax assets were not realizable as of December 31, 2024 and 2023. Accordingly, a valuation allowance has been recorded to offset the net deferred tax assets in their entirety.

The Company has federal NOL carryforwards of
$227.1
227,148,055 million and $241.1
million at December 31, 2024 and 2023, respectively. The NOL carryforwards incurred prior to 2018 began expiring in 2022. In
December 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the
“Tax Act”), most of the provisions of which took effect starting in 2018. Under the Tax Act, the amount of post 2017
NOLs that we are permitted to deduct in any taxable year is limited to 80%
of our taxable income in such year, where taxable income is determined without regard to the NOL deduction itself. In addition, the
Tax Act generally eliminates the ability to carry back any NOL to prior taxable years, while allowing post 2017 unused NOLs to be
carried forward indefinitely. Utilization of the NOL carryforwards may be subject to an annual limitation as provided by
Section 382 of the Code, defined earlier. There can be no assurance that the NOL carryforwards will ever be fully