Company: SRPT
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000950170-25-029973
Chunk: 472

Company: Sarepta Therapeutics, Inc.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 9A
Chunk 472
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        Difference in depreciation and amortization

        35,805

        36,611

        Research and development tax credits

        381,451

        374,017

        Stock-based compensation

        107,775

        94,452

        Lease liabilities

        48,172

        33,792

        Capitalized inventory

        7,009

        35,269

        Debt discount

        18,678

        25,597

        Capitalized research and development costs

        203,416

        106,534

        Other

        52,658

        50,308

        Total deferred tax assets

        922,558

        911,528

        Deferred tax liabilities:

        Right of use asset

        (31,971
        )

        (25,800
        )

        Debt discount

        —

        —

        Total deferred tax liabilities

        (31,971
        )

        (25,800
        )

        Valuation allowance

        (888,335
        )

        (883,665
        )

        Net deferred tax assets
         
        $
        2,252

        $
        2,063

      For tax years beginning on or after January 1, 2022, the Tax Cuts and Jobs Act of 2017 eliminates the option to currently deduct research and development expenses and requires taxpayers to capitalize and amortize the costs over five years for research activities performed in the United States and 15 years for research activities performed outside the United States. The requirement to capitalize research and development costs for tax purposes resulted in the Company having taxable profits and recording federal and state tax expense of $5.1 million and $19.7 million, respectively. The state tax expense of $19.7 million is primarily related to the temporary suspension of utilizing net operating loss carryforwards in certain states the Company operates in.On a periodic basis, the Company reassesses the valuation allowance on its deferred tax assets, weighing positive and negative evidence to assess the recoverability of such deferred tax assets. In assessing the Company’s ability to realize its net deferred tax assets, the Company considered various factors, including future reversals of existing taxable temporary differences, projected future taxable income, potential carryback claims and tax planning strategies to determine whether it is more likely than not that some portion or all of its net deferred tax assets will not be realized. Based upon these factors, the