Company: AWRE
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0000950170-25-038714
Chunk: 68

Company: AWARE INC /MA/
Filing Date: 2025-03-13
Form: 10-K
Item: Item 5
Chunk 68
---
 If an “ownership change” has occurred or does occur in the future, utilization of the NOL carryforwards or other tax attributes may be limited, which could potentially result in increased future tax liability to us.Uncertain tax benefits - As of December 31, 2024 and 2023, we had $0.7 million of uncertain tax positions that were primarily related to our research and development tax credits.  There were no changes to this amount during each of the years ended December 31, 2024 and 2023.  The uncertain tax positions will impact our effective tax rate if realized.  

46

Tax examinations – We file tax returns as prescribed by the tax laws of the jurisdictions in which we operate.  In the normal course of business, we are subject to examination by federal and state jurisdictions, where applicable.    The earliest tax years that remain subject to examination by jurisdiction is 2019 for both federal and Massachusetts.  However, to the extent the Company utilizes net operating losses or credits from years prior to 2019, the statute remains open to the extent of the net operating losses or other credits are utilized. 

8.	EQUITY AND STOCK COMPENSATION PLANSStock Option Plan – During the year ended December 31, 2023, we had one active fixed stock option plan, the 2001 Nonqualified Stock Plan (the “2001 Plan”), under which we were authorized to grant nonqualified stock options, stock appreciation rights, and stock awards to employees and directors for up to 8,000,000 shares of common stock. As of December 31, 2023, there were 1,577,130 shares available for grant under the 2001 Plan.On January 17, 2024, our shareholders approved the Aware, Inc. 2023 Equity and Incentive Plan (the “2023 Plan”), which replaced the 2001 Plan. The 2023 Plan provides for the grant of various equity-based awards, including incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock, unrestricted stock, restricted stock units, dividend equivalent rights, and cash awards. The 2023 Plan authorizes the issuance of an aggregate of 1,277,130 shares of common stock, plus an additional number of shares equal to the number of shares subject to outstanding awards under the 2001 Plan that are forfeited, expire unexercised, or are repurchased or withheld to cover taxes or exercise prices, up to