Company: MDXG
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001376339-25-000009
Chunk: 43

Company: MIMEDX GROUP, INC.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 8
Chunk 43
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 the income approach; specifically, a discounted cash flow method. As a result of this assessment, management concluded that the carrying value of the reporting unit exceeded its fair value by an amount that exceeded its goodwill balance. Accordingly, the Company recognized an impairment loss for the full amount of the goodwill ascribed to the Regenerative Medicine reporting unit. The goodwill impairment loss is included as a component of discontinued operations in the audited consolidated statement of operations for the year ended December 31, 2023. Impairment of goodwill of $0.5 million was recorded as part of loss from discontinued operations for the year ended December 31, 2023.

16.    Income Taxes 

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):December 31,20242023Deferred Tax Assets:Capitalized research and development expenditures$9,970 $10,843 Research and development and other tax credits6,752 8,117 Share-based compensation3,933 3,266 Net operating loss3,713 13,712 Accrued expenses3,038 3,660 Lease liabilities1,456 600 Allowance for doubtful accounts778 778 Intangible assets580 — Sales return and allowances494 270 Property and equipment295 84 Interest limitation carry forward— 1,873 Other155 437 Deferred Tax Liabilities:Prepaid expenses(949)(1,045)Right of use asset(1,392)(571)Interest limitation carry forward(12)— Intangible assets— (337)Net Deferred Tax Assets28,811 41,687 Less: Valuation allowance(505)(910)Net Deferred Tax Assets after Valuation Allowance$28,306 $40,777 

F- 34

The reconciliation of the federal statutory income tax rate of 21% to the effective rate is as follows:Year ended December 31,202420232022Federal statutory rate21.0 %21.0 %21.0 %State taxes, net of federal benefit4.1 %(21.8)%(0.8)%Nondeductible compensation1.1 %1.8 %(3.2)%Deferred tax adjustments0.9 %1.3 %(4