Company: SRFM
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0000950170-25-043326
Chunk: 201

Company: SURF AIR MOBILITY INC.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 1B
Chunk 201
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        4,164

        2,551

        Deferred revenues

        1,444

        —

        Other

        156

        —

        Deferred Tax Assets, Gross

        71,662

        58,082

        Valuation Allowance

        (57,548
        )

        (45,065
        )

        Deferred Tax Assets, Net of Valuation Allowance

        14,114

        13,017

        Depreciation and amortization differences

        (10,302
        )

        (10,473
        )

        ROU assets - operating leases

        (4,532
        )

        (3,404
        )

        Prepaid expenses

        (321
        )

        (369
        )

        Other

        —

        (106
        )

        Total Deferred Tax Liabilities

        (15,155
        )

        (14,352
        )

        Total Deferred Tax Assets (Liabilities), net
         
        $
        (1,041
        )
         
        $
        (1,335
        )
       
       As of December 31, 2024, the Company has approximately $327.5 million of gross federal net operating loss (“NOL”) carryforwards, of which $90.5 million will begin to expire in 2030. The federal NOLs generated after 2017 can be carried forward indefinitely and be used to offset up to 80% of future taxable income. Additionally, as of December 31, 2024, the Company has approximately $306.6 million of gross state NOL carryforwards, which will begin to expire in 2027. The described carryforwards are included in the Company's calculation of its deferred tax asset; however, realization of the deferred tax asset is dependent on the Company generating sufficient taxable income prior to expiration of the NOL carryforwards. Also, utilization of the operating losses and tax credits may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986 under Section 382 and similar state provisions. As of December 31, 2024 and 2023, the Company recorded a valuation allowance of approximately $57.5 million and $45.1 million, respectively, on the net deferred tax assets, as management does not believe it is more likely than not that the tax assets will ultimately be realized. The valuation allowance increased by