Company: KITTW
Filing Date: 2025-04-30
Form Type: ARS
Source: 0001849820-25-000123
Chunk: 125

Company: Nauticus Robotics, Inc.
Filing Date: 2025-04-30
Form: ARS
Chunk 125
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 to any matters. Table of Contents NAUTICUS ROBOTICS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS F-24

10. Income Taxes The income tax expense consisted of the following: Year Ended December 31, 2024 2023 Current income taxes: Federal $ - $ - State and local - - Total current tax - - Deferred income taxes: Federal - - State and local - - Total deferred tax - - Income tax expense $ - $ - The effective tax rates on continuing operations for the years ended December 31, 2024 and December 31, 2023 were 0% and 0%, respectively. The table below reconciles these effective tax rates with the U.S. federal statutory income tax rate as follows: Year Ended December 31, 2024 2023 Loss before income taxes $ (134,906,649) $ (50,686,601) Tax benefit at Federal Statutory Rate (28,330,397) (10,644,186) Debt extinguishment 19,393,825 - Nondeductible (add back) expenses (137,868) 1,251,583 Federal return to accrual (66,938) (13,141) Change in valuation allowance 9,141,378 8,895,230 Deferred tax adjustment - 510,514 Income tax expense $ - $ - Table of Contents NAUTICUS ROBOTICS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS F-25

The 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: Year Ended December 31, 2024 2023 Deferred tax assets: Fixed assets $ 3,709,975 $ 3,377,201 Stock compensation 192,483 267,236 Warrant liability gain/loss 38,202 1,356,828 Net operating losses 25,424,520 15,627,776 Business credit carryforward 1,441,159 1,441,159 Capitalized R & D 467,113 614,299 Accrued expenses 496,060 - Other assets 266,367 199,680 Subtotal 32,035,879 22,884,179 Valuation allowance (31,805,983) (22,654,