Company: PIII
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001628280-25-015305
Chunk: 74

Company: P3 Health Partners Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 7
Chunk 74
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Year Ended December 31,20242023(in thousands)Domestic$(305,991)$(183,731)Foreign— — Total$(305,991)$(183,731)The components of income tax expense were as follows:Year Ended December 31,20242023(in thousands)Current income taxes:Federal $1,217 $170 State4,260 2,525 Total current income taxes5,477 2,695 Deferred income taxes:Federal(835)— State(255)— Total deferred income taxes(1,090)— Total income tax expense$4,387 $2,695 A reconciliation of the statutory federal income tax to the Company’s provision for income taxes is as follows:Year Ended December 31,20242023(dollars in thousands)Tax at federal statutory rate$(64,258)$(38,584)Non-controlling interest and nontaxable income36,984 24,486 Change in valuation allowance29,929 29,781 Investment in P3 LLC(796)(20,420)Return to provision2,006 4,134 Deferred tax adjustments(21)1,754 Other reconciling items543 1,544 Total$4,387 $2,695 Effective tax rate(1.4)%(1.5)%

P3 Health Partners Inc. | 2024 Form 10-K | 102

The Company’s tax rate is affected primarily by the recognition of a valuation allowance and the portion of income and expense allocated to the non-controlling interest.Deferred Income TaxesDeferred income taxes result from differences in the recognition of amounts for tax and financial reporting purposes, as well as operating loss and tax credit carryforwards. Significant components of the Company’s deferred income tax assets and liabilities are as follows:December 31,20242023(in thousands)Deferred tax assets:  Investment in P3 LLC$32,438 $19,709 Net operating loss carryforwards33,087 21,525 Accrued liabilities181 221 Goodwill and identifiable intangible assets1,712 1,923 Section 163j interest limitation5,104 3,031 Other deferred tax assets459 632 Total deferred tax assets72,981 47,041 Less: valuation allowance(71,457)(46,370)Net deferred tax assets1,524 671 Deferred tax liabilities:Operating lease