Company: NCNO
Filing Date: 2025-04-01
Form Type: 10-K
Source: 0001902733-25-000026
Chunk: 44

Company: nCino, Inc.
Filing Date: 2025-04-01
Form: 10-K
Item: Item 8
Chunk 44
---
 that these earnings are indefinitely reinvested, a tax liability will be recognized, which could include other taxes such as withholding tax. The determination of the amount of the unrecognized tax liability is directly influenced by the Company’s net operating loss and valuation allowance position in the U.S. If the Company were to repatriate the undistributed earnings, the tax liability is $1.2 million.The net operating loss and tax credit carryforwards as of January 31, 2025 were as follows:As of January 31, 2025 First Fiscal Year Expiring  Federal net operating loss carryforwards1354,217 NoneState net operating loss carryforwards1254,212 2030State net operating loss carryforwards181,394 NoneForeign net operating loss carryforwards8,790 2031Foreign net operating loss carryforwards1102,385 NoneFederal tax credit carryforwards114,840 2037State tax credit carryforwards2,788 2032Foreign tax credit carryforward61 None1The Company acquired a portion of these carryforwards through mergers and acquisitions. These acquired carryforwards will be subject to limitations which could limit the Company's utilization in future periods.In 2021, the Organization of Economic Cooperation and Development introduced its Pillar Two Framework Model Rules ("Pillar 2"). The Company is under the revenue threshold where Pillar 2 would not apply and is not subject to tax under these rules. The Company will continue to monitor and reflect the impact of such legislative changes in future financial statements as appropriate.A reconciliation of the gross beginning and ending balance of total unrecognized tax benefits is as follows: Fiscal Year Ended January 31,202320242025Balance, beginning of period$— $— $— Additions for current year tax positions— — 1,813 Additions for prior year tax positions— — 4,356 Additions for current year acquisitions— — 2,536 Balance, end of period$— $— $8,705 As of January 31, 2025 gross unrecognized tax benefits related to uncertain tax positions were $8.7 million. The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate would be $3.7 million for the year ended January 31, 2025. The Company's policy for classifying interest and penalties with unrecognized tax benefits is to include such items in income tax expense.