Company: FTCI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0000950170-25-047224
Chunk: 235

Company: FTC Solar, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 235
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        1,886

        Other

        3,257

        2,048

        Subtotal

        87,116

        76,446

        Less: valuation allowance

        (86,582
        )

        (75,858
        )

        Total deferred tax assets

        534

        588

        Deferred tax liabilities:

        Leases

        (261
        )

        (339
        )

        Prepaid expenses

        (52
        )

        (166
        )

        Total deferred tax liabilities

        (313
        )

        (505
        )

        Net deferred tax assets
         
        $
        221

        $
        83

      The net change in the total valuation allowance for the year ended December 31, 2024, was an increase of $10.7 million recorded through continuing operations. The net change in the total valuation allowance for the year ended December 31, 2023, was an increase of $10.2 million recorded through continuing operations. In assessing the realizability of deferred tax assets, we considered whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We considered 

81

the scheduled reversal of deferred tax liabilities, carryback potential, projected future taxable income and tax planning strategies in making this assessment. After consideration of these factors and based upon the level of historical taxable losses, we believe it is more likely than not that the Company will not realize the benefits of these deductible differences at December 31, 2024.We have federal net operating loss carryforwards of approximately $321.1 million at December 31, 2024. These loss carryforwards have an indefinite carryforward period. We also have state net operating loss carryforwards of approximately $126.2 million which begin to expire in 2034. We have federal R&D credit carryforwards of approximately $2.4 million at December 31, 2024, which begin to expire in 2038.Utilization of our net operating loss carryforwards and other tax attributes to offset federal taxable income may be subject to annual limitation due to changes in ownership, pursuant to Internal Revenue Code Sections 382 and 383.We are subject to U.S. federal income tax, as well as income tax in multiple state and foreign