Company: CIFRW
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001819989-25-000005
Chunk: 8

Company: Cipher Mining Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 8
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 provision for income taxes primarily consists of U.S. deferred federal taxes. A valuation allowance is recorded against substantially all of our net deferred tax assets, which are composed primarily of federal and state net operating loss carryforwards, stock-based compensation, non-goodwill intangibles, investments in joint ventures and lease liabilities; in addition, we have deferred tax liabilities resulting from our derivative and right-to-use assets. Our ability to offset our deferred tax liabilities with our deferred tax assets is limited due to restrictions on the ability to offset taxable income by more than eighty percent with federal net operating losses. As a result, we have recorded a deferred tax liability for the amount of future taxable income that is not expected to be covered by net operating losses. We evaluate our ability to recognize our deferred tax assets annually by considering all positive and negative evidence available as proscribed by the Financial Accounting Standards Board (“FASB”) under its general principles of Accounting Standards Codification (“ASC”) 740, Income Taxes.

53

Results of Operations

The following table presents sets forth our results of operations for the periods indicated (in thousands):

Year Ended December 31,20242023Revenue - bitcoin mining$151,270 $126,842 Costs and operating (expenses) incomeCost of revenue(62,364)(50,309)Compensation and benefits(60,796)(57,399)General and administrative(32,655)(27,796)Depreciation and amortization(102,448)(59,093)Change in fair value of derivative asset(7,921)26,836 Power sales5,405 9,941 Equity in losses of equity investees(384)(2,530)Unrealized gains on fair value of bitcoin11,313 3,299 Realized gains on sale of bitcoin51,548 7,739 Other gains3,333 2,355 Total costs and operating expenses(194,969)(146,957)Operating loss(43,699)(20,115)Other income (expense)Interest income3,384 164 Interest expense(1,708)(1,999)Change in fair value of warrant liability250 (243)Other expense(2,544)(17)Total other income (expense)(618)(2,095)Loss before taxes(44,317)(22,210)Current income tax expense(1,255)(201)Deferred income tax benefit (expense)937 (3,366)Total income tax benefit (