Company: ERAS
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0000950170-25-042682
Chunk: 317

Company: Erasca, Inc.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 6
Chunk 317
---
        Federal statutory income tax rate

        21.0
        %

        21.0
        %

        State income taxes, net of federal benefit

        0.1

        (9.8
        )

        Change in valuation allowance

        (22.5
        )

        (11.1
        )

        Other permanent differences

        (1.7
        )

        (1.6
        )

        Research and development credits

        3.7

        5.0

        State net operating loss

        —

        (0.4
        )

        Other

        (0.6
        )

        (3.1
        )

        Effective income tax rate

        —
        %

        —
        %
       
       At December 31, 2024, the Company had federal, California, and other state net operating loss (NOL) carryforwards of $251.8 million, $243.1 million, and $3.3 million, respectively. The federal NOL carryforwards will carryforward indefinitely and can offset 80% of future taxable income each year, the California NOL carryforwards begin to expire in 2038, and the other state NOL carryforwards begin to expire in 2036. 

 F-27

At December 31, 2024, the Company also had federal, California, and Massachusetts research tax credit carryforwards of approximately $16.0 million, $9.0 million, and $717,000, respectively. The federal research tax credit carryforwards begin to expire in 2038, the California research tax credit carryforward does not expire and can be carried forward indefinitely until utilized, and the Massachusetts research tax credit carryforwards begin to expire in 2036. At December 31, 2024, the Company also had federal orphan drug credit carryforwards of approximately $1.3 million. The federal orphan drug credit carryforwards begin to expire in 2043. At December 31, 2024, the Company also had federal and California charitable contribution carryforwards of $15.7 million. The charitable contribution carryforwards begin to expire in 2025. The above NOL carryforward and the research tax credit carryforwards are subject to an annual limitation under Section 382 and 383 of the Internal Revenue Code of 1986, as amended (IRC), and similar state provisions due to