Company: CRNX
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000950170-25-029050
Chunk: 37

Company: Crinetics Pharmaceuticals, Inc.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 16
Chunk 37
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        Expiration of the statute of limitations for the assessment of taxes

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        Ending balance
         
        $
        10,689

        $
        6,946

        $
        4,110

       Due to the existence of the valuation allowance, future changes in unrecognized tax benefits would not have any effect on the Company’s effective tax rate. The Company does not foresee any material changes to its unrecognized tax benefits within the next twelve months. There have been no decreases in unrecognized tax benefits due to settlements or expiration of statute of limitations for the assessment of taxes during the years ended December 31, 2024, 2023 and 2022. The Company’s policy is to recognize the interest expense and/or penalties related to income tax matters as a component of income tax expense. The Company had no accrual for interest or penalties on its consolidated balance sheets as of December 31, 2024 or December 31, 2023, and has not recognized interest and/or penalties in its consolidated statements of operations for the years ended December 31, 2024, December 31, 2023, and December 31, 2022 as the unrecognized tax benefits relate to tax positions for which no cash tax liability has been reduced.In response to the pandemic, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was signed into law on March 27, 2020.  The CARES Act, among other things, includes tax provisions relating to refundable payroll tax credits, deferment of employer’s social security payments, net operating loss utilization and carryback periods, modifications 

F-28

to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property.  The CARES Act did not have a material impact on our income tax provision for the year ended December 31, 2024, 2023, and 2022.Deferred income taxes have not been provided for undistributed earnings of the Company’s consolidated foreign subsidiaries because the Parent entity would not be required to include the distribution into income as the amount would be tax free. The Company has no foreign withholding tax liability as of December 31, 2024 as a result of losses in foreign subsidiaries.                              The Tax Cuts and Jobs Act subjects a US shareholder to tax on Global Intangible Low-Taxed Income ("GILTI") earned by certain foreign subsidiaries.  The FASB Staff Q&A, Topic