Company: OPGN
Filing Date: 2025-08-21
Form Type: 10-K
Source: 0001829126-25-006628
Chunk: 1710

Company: OPGEN INC
Filing Date: 2025-08-21
Form: 10-K
Item: Item 9B
Chunk 1710
---
, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the
“Tax Act”), most of the provisions of which took effect starting in 2018. Under the Tax Act, the amount of post 2017
NOLs that we are permitted to deduct in any taxable year is limited to 80%
of our taxable income in such year, where taxable income is determined without regard to the NOL deduction itself. In addition, the
Tax Act generally eliminates the ability to carry back any NOL to prior taxable years, while allowing post 2017 unused NOLs to be
carried forward indefinitely. Utilization of the NOL carryforwards may be subject to an annual limitation as provided by
Section 382 of the Code, defined earlier. There can be no assurance that the NOL carryforwards will ever be fully utilized. To
date, the Company has not performed a formal study to determine if any of its remaining NOL and credit attributes might be further
limited due to the ownership change rules of Section 382 or Section 383 of the Code, as amended. The Company will continue
to monitor this matter going forward. There can be no assurance that the NOL carryforwards will ever be fully utilized.

The Tax Act amended IRC Section 174 to require capitalization of all research and development (“R&D”) costs incurred in tax years beginning after December 31, 2021. These costs are required to be amortized over five years if the R&D activities are performed in the U.S., or over 15 years if the activities were performed outside the U.S. The Company capitalized approximately $2.1 million of R&D expenses incurred as of December 31, 2024.

Note 10 – Commitments and Contingencies

Registration and other stockholder rights

In connection with various investment transactions, the Company entered into certain registration rights agreements with stockholders, pursuant to which the investors were granted certain demand registration rights and/or piggyback and/or resale registration rights in connection with subsequent registered offerings of the Company’s common stock.

    F-31

Note 11 – Leases

The following table presents the Company’s ROU assets and lease liabilities as of December 31, 2024 and 2023:

    Schedule of ROU asset and liability classifications

    Lease Classification
     
    December 31, 2024

    December 31, 2023

    ROU assets: