Company: EVCM
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0001853145-25-000009
Chunk: 175

Company: EverCommerce Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 8
Chunk 175
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 tax rate if recognized. The Company recognizes interest and penalties, if any, related to unrecognized tax positions in the provision for income taxes in the accompanying consolidated statements of operations and comprehensive loss. The Company does not expect a significant increase or decrease in unrecognized tax benefits over the next twelve months.The Company, through its foreign subsidiary Alnashmi Digital Marketing, LLC, provides exported technology services, the profits of which are exempt from income tax through December 31, 2025 according to the provisions of the article (9/A/4) of Regulation Number 106 of the 2016 Regulations. So long as the services are exported outside of Jordan, they originate in Jordan and there are no other services within the exported services, the qualifications are met. The approximate dollar value of tax expense related to the tax holiday was $0.1 million and $0.2 million as of December 31, 2024 and 2023, respectively.During the year ended December 31, 2023, we restructured the ownership of certain intellectual property, which resulted in an income tax benefit.During the year ended December 31, 2024, we sold Fitness Solutions as discussed in Note 3. Acquisitions and Dispositions, which resulted in an income tax benefit.

II-49

   EverCommerce Inc.Notes to Consolidated Financial Statements

The income tax benefit differs from the expected tax benefit computed by applying the U.S. federal statutory rate to income before taxes as a result of the following:Year Ended December 31,202420232022(in thousands, except percentages)Benefit at U.S. statutory rate$(7,414)21.00%$(9,236)21.00%$(13,544)21.00%Change in income tax resulting from:State income benefit, net of federal benefit(938)2.66(810)1.84(852)1.32Stock-based compensation416 (1.18)2,513 (5.71)2,961 (4.59)Nondeductible compensation1,863 (5.28)876 (1.99)163 (0.25)Nondeductible transaction costs— —61 (0.14)— —Foreign rate differential1,501 (4.25)85 (0.19)(129)0.20Change in valuation allowance12,992 (36.80)5,342 (12.15)15,648