Company: PRTA
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001559053-25-000009
Chunk: 198

Company: PROTHENA CORP PUBLIC LTD CO
Filing Date: 2025-02-27
Form: 10-K
Item: Item 8
Chunk 198
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. subsidiaries. The determination of a hypothetical unrecognized deferred tax liability as of December 31, 2024 is not practicable because of the complexity and variety of assumptions necessary to compute the tax.A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands):20242023Gross Unrecognized Tax Benefits at January 1$13,354 $11,564 Additions for tax positions taken in the current year2,201 2,355 Additions for tax positions taken in the prior year— — Reductions for tax positions taken in the prior year (128)(565)Gross Unrecognized Tax Benefits at December 31 $15,427 $13,354 If recognized, none of the Company's unrecognized tax benefits as of December 31, 2024, would reduce its annual effective tax rate, primarily due to corresponding adjustments to its deferred tax valuation allowance. As of December 31, 2024, the Company has not recorded a liability for potential interest or penalties. The Company also does not expect its unrecognized tax benefits to change significantly over the next 12 months.

The Company is subject to reviews and audits by the U.S. Internal Revenue Service (“IRS”), the Irish Revenue Commissioners, and other taxing authorities from time to time. The Company’s U.S. subsidiaries are currently under examination by the IRS for tax year 2021. The Company periodically reviews its uncertain tax positions. The Company’s assessment is based on many factors, including any ongoing IRS audits. For the year ended December 31, 2024, the Company’s assessment did not result in a material change in unrecognized tax benefits. The tax years 2013 to 2024 remain subject to examination by the U.S taxing authorities and the tax years 2019 to 2024 remain subject to examination by the Irish taxing authorities as of December 31, 2024. 

11. Employee Retirement Plan

In the U.S., the Company provides a qualified retirement plan under section 401(k) of the Internal Revenue Code (the “IRC”) under which participants may contribute up to 100% of their eligible compensation, subject to maximum deferral limits specified by the IRC. In addition, the Company contributes 3% of each participating employee’s eligible compensation, subject to limits specified by the IRC, on a quarterly basis. Further, the Company may make an annual discretionary matching and/or profit-sharing contribution as determined solely by the Company. The Company recorded total expense for matching contributions in the U