Company: RRGB
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001171759-25-000012
Chunk: 106

Company: RED ROBIN GOURMET BURGERS INC
Filing Date: 2025-02-26
Form: 10-K
Item: Item 8
Chunk 106
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$(89,804)$(97,386)Property and equipment— (1,242)Supplies inventory(4,349)(4,415)Prepaid expenses(1,862)(1,472)Advanced Payments(364)— Other non-current deferred tax liabilities(7,887)(7,548)Total$(104,266)$(112,063)Net deferred tax asset$— $— The Company had net operating loss carryforwards for tax purposes of $50.7 million as of December 29, 2024. This is comprised of approximately $22.7 million of federal net operating loss carryovers, approximately $19.3 million of state net operating loss carryovers, and approximately $8.7 million of foreign net operating loss carryovers. The federal net operating loss has an indefinite carryforward period, the state net operating loss carryovers expire at various dates between 2025 and 2044, and the foreign net operating loss carryovers expire at various dates between 2035 and 2042.As of December 29, 2024, the Company had a deferred tax asset of $39.8 million related to federal tax credits, which expire at various dates between 2037 and 2041. The Company also had a deferred tax asset of $1.2 million related to state tax credits which expire in 2025.The Company establishes a valuation allowance to reduce the carrying amount of deferred income tax assets when it is more likely than not that it will not realize some portion or all the tax benefit of its deferred income tax assets. The realization of deferred tax assets depends on the generation of future taxable income during the periods in which the temporary differences become deductible. In making this determination, the Company considers all available positive and negative evidence including 

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historical operating losses, the reversal of deferred income tax liabilities, projected future taxable income, and tax planning strategies. In 2020, management determined that a full valuation allowance was required and has recorded a full valuation allowance as of December 29, 2024 and at December 31, 2023.Based on the Company's evaluation of its deferred tax assets, a valuation allowance of approximately $136.6 million has been recorded against the deferred tax asset for federal and state tax credits, federal and state deferred tax assets, all net operating loss carry forwards and the deferred taxes of our foreign subsidiary.The following table summarizes the Company's unrecognized tax benefits at December 29, 2024, December