Company: LASR
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001124796-25-000021
Chunk: 62

Company: NLIGHT, INC.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 8
Chunk 62
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55

The following table presents a reconciliation of the changes in the unrecognized tax benefit (in thousands): Balance at December 31, 2021$8,435 Additions based on tax positions related to the current year822 Reductions for tax positions of prior years(53)Reductions as a result of a lapse of applicable statute of limitations(183)Other(437)Balance at December 31, 20228,584 Additions based on tax positions related to the current year416 Reductions for tax positions of prior years(70)Reductions as a result of a lapse of applicable statute of limitations(371)Other(84)Balance at December 31, 20238,475 Additions based on tax positions related to the current year150 Reductions for tax positions of prior years(30)Reductions as a result of a lapse of applicable statute of limitations(33)Other(75)Balance at December 31, 2024$8,487     At December 31, 2024, we had $2.7 million of unrecognized tax benefits (excluding interest and penalties) in Non-Current Income Taxes Payable and $5.8 million of unrecognized tax benefits as an offset to our long-term deferred tax assets embedded in Other Assets, Net on the accompanying Consolidated Balance Sheets. The $5.8 million of unrecognized tax benefits in non-current deferred tax assets is entirely offset by a valuation allowance in both the U.S. and China. Of our unrecognized tax benefits, $2.7 million, if recognized, would impact the effective tax rate. At December 31, 2023, we had $2.8 million of unrecognized tax benefits (excluding interest and penalties) in Non-Current Income Taxes Payable and $5.7 million of unrecognized tax benefits as an offset to our long-term deferred tax assets embedded in Other Assets, Net on the accompanying Consolidated Balance Sheets. We do not expect a significant decrease to the total amount of unrecognized tax benefits within the next twelve months. We recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense. We recognized a net increase (decrease) in penalties and interest during the years ended December 31, 2024, 2023 and 2022, of $0.2 million, $(1.0) million, and $0.3 million, respectively. At December 31, 2024 and 2023, interest and