Company: APPN
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001441683-25-000041
Chunk: 24

Company: APPIAN CORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 24
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139)Total debt, net of debt issuance costs$248,024$250,424Debt, current$9,598$9,598Long-term debt 238,426240,826Total debt$248,024$250,424(1) Deferred debt issuance costs associated with the term loan facility are recorded net of the debt obligation and amortized to interest expense over the term of the Credit Agreement. As of March 31, 2025, one of our bank accounts exceeded its permitted cash threshold under the Credit Agreement due to customer payments that were received just prior to quarter end, resulting in a covenant violation. We promptly cured the matter by transferring cash to be within the permitted threshold and obtained a waiver from our lenders waiving their rights to call our obligations under the Credit Agreement. As a result, we are currently in compliance with all covenants contained in the Credit Agreement. As of March 31, 2025, we had $62.0 million outstanding under our $100.0 million revolving credit facility, and we had outstanding letters of credit totaling $14.6 million in connection with securing our leased office space.

9. Income TaxesThe provision for income taxes is based upon the estimated annual effective tax rates for the year applied to the current period income before tax plus the tax effect of any significant or unusual items, discrete events, or changes in tax law. Our operating subsidiaries are exposed to statutory effective tax rates ranging from zero to approximately 35%. Fluctuations in the distribution of pre-tax income among our operating subsidiaries can lead to fluctuations of the effective tax rate in the consolidated financial statements. For the three months ended March 31, 2025 and 2024, the actual effective tax rates were (170.0)% and 1.4%, respectively.

18

As of March 31, 2025, our net unrecognized tax benefits totaled $7.8 million, which if recognized would result in no net effect on the effective tax rate due to a valuation allowance. The amount of reasonably possible unrecognized tax benefits that could decrease over the next 12 months due to the expiration of certain statutes of limitations or settlements of tax audits is not material to our consolidated financial statements.We file income tax returns in the U.S. federal jurisdiction and in various state and foreign jurisdictions. Due to our net operating loss carryforwards, the tax years 2016 through 2024 remain open to examination by the major taxing jurisdictions to which we are subject. There are no open examinations that