Company: ADAMM
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001273685-25-000088
Chunk: 103

Company: ADAMAS TRUST, INC.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 103
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 U.S. federal income tax purposes. As long as the Company qualifies as a REIT, the Company generally will not be subject to U.S. federal income taxes on its taxable income to the extent it annually distributes at least 100% of its taxable income to stockholders and does not engage in prohibited transactions. Certain activities the Company performs may produce income that will not be qualifying income for REIT purposes. The Company has designated its TRSs to engage in these activities. The tables below reflect the taxes accrued at the TRS level and the tax attributes included in the condensed consolidated financial statements.The income tax (benefit) expense for the three and nine months ended September 30, 2025 and 2024, respectively, is comprised of the following components (dollar amounts in thousands):For the Three Months Ended September 30,For the Nine Months Ended September 30, 2025202420252024Current income tax (benefit) expense $(308)$— $178 $163 Deferred income tax expense10 2,325 11 2,393 Total income tax (benefit) expense$(298)$2,325 $189 $2,556 Deferred Tax Assets and LiabilitiesThe major sources of temporary differences included in the deferred tax assets (liabilities) and their deferred tax effect as of September 30, 2025 and December 31, 2024, respectively, are as follows (dollar amounts in thousands): September 30, 2025December 31, 2024Deferred tax assets  Net operating loss carryforward$8,966 $9,671 Capital loss carryover20,719 16,259 GAAP/Tax basis differences9,220 11,346 Deferred tax assets38,905 37,276 Less: Valuation allowance (29,532)(26,412)Net deferred tax assets (1)9,373 10,864 Deferred tax liabilities  GAAP/Tax basis differences7,802 9,282 Deferred tax liabilities (2)7,802 9,282 Total net deferred tax asset$1,571 $1,582 (1)Included in other assets in the accompanying condensed consolidated balance sheets.(2)Included in other liabilities in the accompanying condensed consolidated balance sheets.    As of September 30, 2025, the Company, through wholly-owned TRSs, had incurred net operating losses in the aggregate amount of approximately