Company: CRNX
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000950170-25-029050
Chunk: 83

Company: Crinetics Pharmaceuticals, Inc.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 14
Chunk 83
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 such Tax Attribute carryforwards. The Company updated the study for 2022 and 2023 and did not identify any additional ownership changes. Future ownership changes could still occur which might place further limits on the Company's ability to utilize its Tax Attribute carryforwards.The Company’s federal income tax returns from 2021 forward, state income tax returns from 2020 forward, and its Australian tax returns beginning in 2021 are subject to examination by  tax authorities; however, the Company's tax attribute carryforwards such as NOLs and R&D credits generated in closed years remain subject to adjustment by the taxing authorities until the future tax years in which those attributes are utilized are closed to statute. No such audits are underway.Deferred tax assets and liabilitiesNet deferred tax assets are comprised of the following as of December 31, 2024 and 2023 (in thousands):  

        December 31,

        2024

        2023

        Deferred tax assets:

        Net operating loss carryforwards
         
        $
        109,135

        $
        81,828

        Capitalized research expenses

        83,785

        43,509

        R&D and other tax credits

        57,901

        37,663

        Stock-based compensation

        18,090

        12,207

        Lease liabilities

        11,592

        10,889

        Accrued expenses and other, net

        7,488

        5,350

        Equity method investment

        3,544

        3,230

        Total deferred tax assets

        291,535

        194,676

        Deferred tax liabilities:

        Right-of use assets

        (9,751
        )

        (9,799
        )

        Net of deferred tax liabilities

        (9,751
        )

        (9,799
        )

        Less: valuation allowance

        (281,784
        )

        (184,877
        )

        Net deferred tax assets
         
        $
        —

        $
        —

       Realization of deferred tax assets is dependent upon future earnings, if any, the timing and amount of which are uncertain.  Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be 

F-27

generated to use existing deferred tax assets. Based on the weight of available evidence, including the Company