Company: CIFRW
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001819989-25-000005
Chunk: 82

Company: Cipher Mining Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 16
Chunk 82
---
3,299 Realized gains on sale of bitcoin7,739 Equity in losses of equity method investees(2,530)Other segment items(1)12,296 Segment operating income65,080 65,080 Adjustments(2)(85,195)Operating loss(20,115)Interest income164 Interest expense(1,999)Other non-operating items(3)(260)Loss before taxes$(22,210)(1) Other segment items included in Bitcoin Mining include Power sales, and Other gains.(2) Other operating items included in adjustments include Compensation and benefits, and General and administrative.(3) Other non-operating items include Change in fair value of warrant liability, and Other expense.

NOTE 21. INCOME TAXES

For the years ended December 31, 2024, and 2023, the Company recorded a deferred tax expense related to an increase in deferred tax liabilities associated with derivatives and joint venture instruments (refer to Note 7. Investment In Equity 

F-34

CIPHER MINING INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Investees for more details on the Company’s joint ventures). Current income taxes are based upon the current period’s income taxable for federal and state tax reporting purposes. Deferred income taxes (benefits) are provided for certain income and expenses, which are recognized in different periods for tax and financial reporting purposes. Deferred tax assets and liabilities are computed for differences between the financial statements and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the period in which the differences are expected to affect taxable income, and net operating loss (“NOL”) carryforwards.The components of the Company’s income tax provision are listed below (in thousands):Year EndedYear EndedDecember 31, 2024December 31, 2023Current:  State$1,255 $201 Total current1,255 201 Deferred:  Federal$(937)$3,366 Total deferred(937)3,366 Income tax provision$318 $3,567 A reconciliation of the expected tax computed at the U.S. statutory federal income tax rate to the total expense for income taxes is shown below:Year Ended Year Ended December 31, 2024December 31, 2023Income tax benefit at federal statutory rate21.0 %21.0 %State taxes, net of federal benefit(