Company: FOACW
Filing Date: 2025-05-20
Form Type: 10-K/A
Source: 0001828937-25-000032
Chunk: 236

Company: Finance of America Companies Inc.
Filing Date: 2025-05-20
Form: 10-K/A
Chunk 236
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 Therefore, a valuation allowance for the deferred tax asset in excess of deferred tax liabilities has been maintained. Management also determined that the future sources of taxable income from reversing temporary differences that comprise the investment in FOA Equity deferred tax liability would only be fully realized upon sale of FOA’s interest in FOA Equity. Accordingly, the deferred tax liability from investment in FOA Equity has been treated as an indefinite-lived intangible and is limited by the federal net operating loss utilization rules. The net change in the valuation allowance was $ 3.9million and $ 17.7million for the years ended December 31, 2024 and 2023, respectively. Furthermore, $ 1.2million and $ 3.3million of decreases in the valuation allowance associated with transactions with noncontrolling interests in the years ended December 31, 2024 and 2023, respectively, are offset to additional paid-in capital.

Net deferred tax liabilities are included in accrued and other liabilities, which is part of Payables and other liabilities in the Consolidated Statements of Financial Condition.

Tax positions taken in tax years that remain open under the statute of limitations will be subject to examinations by tax authorities. With few exceptions, the Company is no longer subject to state or local examinations by tax authorities for tax years ende d December 31, 2020 or prior.

The Company’s unrecognized tax benefits, excluding related interest and penalties, were (in thousands):

|                                                          |     |   | For the year ended December 31, 2024 |     |   | For the year ended December 31, 2023 |
|:---------------------------------------------------------|:----|:--|-------------------------------------:|:----|:--|-------------------------------------:|
| Unrecognized tax benefits—beginning of period            |     | $ |                                  421 |     | $ |                                  307 |
| Increases on tax positions related to the current period |     |   |                                   47 |     |   |                                  114 |
| Decreases on tax positions related to prior periods      |     |   |                                  -31 |     |   |                                    — |
| Unrecognized tax benefits—end of period                  |     | $ |                                  437 |     | $ |                                  421 |

If recognized, the entire amount of the tax benefits disclosed above would reduce the Company’s annual effective tax rate. FOA does not believe that it will have a material increase or decrease in its unrecognized tax benefits during the coming year.

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