Company: PIII
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001628280-25-015305
Chunk: 76

Company: P3 Health Partners Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 7
Chunk 76
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 any given year. The Company also has state net operating loss carryforwards of $36.1 million, of which $1.5 million will expire in 2033, $4.5 million will expire in 2034, $7.6 million will expire in 2035, $5.5 million will expire in 2039, $4.5 million will expire in 2043, and $12.5 million will be carried forward indefinitely.

P3 Health Partners Inc. | 2024 Form 10-K | 103

The federal and state net operating loss carryforwards may be subject to limitations under Section 382 and Section 383 of the Internal Revenue Code of 1986 (the “Code”) and similar provisions under state law. The Tax Reform Act of 1986 contains provisions that limit the federal net operating loss carryforwards that may be used in any given year in the event of special occurrences, including significant ownership changes. The Company has completed a Section 382 analysis covering the period January 1, 2018 through September 30, 2023. The Section 382 analysis tested the Company’s stock for each occurrence of stock issuance during the covered period. Through the analysis period, ownership changes were identified resulting in annual limitations to tax attributes; however, due to the indefinite carryforward of U.S. federal income tax net operating losses, no such carryforwards have been derecognized. Uncertain Tax PositionsThe Company is subject to examination for tax years beginning with the year ended December 31, 2020. The Company is not currently under any U.S. federal or state income tax audits for any tax year.A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:20242023(in thousands)Balance at January 1$— $— Additions based on tax positions related to the current year4,285 — Balance at December 31$4,285 $— As of December 31, 2024, there are $4.3 million unrecognized tax benefits related to state tax filing positions that if recognized would affect the annual effective tax rate. Events that could impact the liability include expiration of the statute of limitations or settlement with the state tax authority. Over the next 12 months, the Company does not expect a significant increase or decrease in the unrecognized tax benefits recorded at December 31, 2024.The Company recorded interest and penalties of $1.6 million related to uncertain tax positions