Company: RSI
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001793659-25-000047
Chunk: 61

Company: Rush Street Interactive, Inc.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 15
Chunk 61
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 expense (benefit) at the federal statutory rate2,558 (3,155)(7,591)State income taxes, net of federal benefit349 (46)(34)Nondeductible stock compensation2,691 1,351 — Foreign operations24,423 11,387 9,113 Change in valuation allowance(3,893)2,589 8,025 Other(1,562)(917)(552)Income tax expense$24,566 $11,209 $8,961 Deferred Tax Assets and LiabilitiesThe Company’s deferred tax position reflects the net tax effects of the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting. Significant components of the deferred tax assets and liabilities are as follows:December 31,($ in thousands)20242023Deferred tax assets:Investment in subsidiaries$172,883 $134,283 Net operating losses26,196 29,724 Imputed interest5,501 2,120 Share-based compensation1,197 1,160 Other assets538 422 Total gross deferred tax assets206,315 167,709 Valuation allowance(205,794)(167,305)Total deferred tax assets, net of valuation allowance521 404 Deferred tax liabilities:Investment in subsidiaries(369)— Total gross deferred tax liabilities(369)— Net deferred tax assets$152 $404 Deferred tax assets and liabilities have been offset to the extent they relate to the same tax jurisdiction. Deferred tax assets of $0.5 million and $0.4 million as of December 31, 2024 and 2023, respectively, are included in Other Assets on the Company’s consolidated balance sheets, and deferred tax liabilities of $0.4 million and nil as of December 31, 2024 and 2023, respectively, are included in Non-current Liabilities on the Company’s consolidated balance sheets.As of December 31, 2024, the Company had approximately $92.1 million and $81.1 million of federal and state net operating loss carryovers, respectively. As of December 31, 2023, the Company had approximately $94.5 million and $83.4 million of federal and state net operating loss carryovers, respectively. If not utilized, the entire federal net operating loss carryforward can be carried forward indefinitely. State net operating loss carryovers will expire in varying