Company: KEQU
Filing Date: 2025-07-02
Form Type: 10-K
Source: 0000055529-25-000026
Chunk: 253

Company: KEWAUNEE SCIENTIFIC CORP /DE/
Filing Date: 2025-07-02
Form: 10-K
Item: Item 8
Chunk 253
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 deferred tax assets and liabilities as of April 30 were as follows:$ in thousands20252024Deferred tax assets:Accrued employee benefit expenses$417 $152 Allowance for credit losses151 151 Deferred compensation1,345 950 Tax credits (state, net of federal benefits)170 170 Foreign tax credit carryforwards638 638 Section 174 R&E3,269 2,303 Warranty Accrual193 — Inventory reserves and capitalized costs478 296 Net operating loss carryforwards147 152 Proceeds on sale leaseback6,550 6,316 Operating lease liabilities2,372 1,211 Other457 332 Total deferred tax assets16,187 12,671 Deferred tax liabilities:Book basis in excess of tax basis of property, plant and equipment(3,024)(1,678)Book basis in excess of tax basis of sale leaseback property(1,095)(1,028)Book basis in excess of tax basis of intangibles assets(4,005)— APB 23 Assertion(1,507)(1,572)Right of use assets(2,589)(1,142)Debt Issuance Cost on sale leaseback(138)(142)Total deferred tax liabilities(12,358)(5,562)Valuation allowance(933)(926)Net deferred tax liabilities$2,896 $6,183 Deferred tax assets (liabilities) classified in the balance sheet:Deferred tax assets, non-current$3,994 $7,401 Deferred tax liabilities, non-current(1,098)(1,218)Net deferred tax assets (liabilities)$2,896 $6,183 

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The Company is required to evaluate the realization of the deferred tax asset and any requirement for a valuation allowance in accordance with ASC 740-10-30-2(b). This guidance provides that the future realization of the tax benefit of an existing deductible temporary difference or carryforward ultimately depends on sufficient taxable income of the appropriate character within the carryback or carryforward period available under the tax law. The Company evaluates all available evidence, both positive and negative, to determine the amount of any required valuation allowance. As of April 30, 2025, our deferred tax assets primarily related to proceeds on a prior sale leaseback, Section 174 research and expenditures addbacks, and operating lease liabilities. A valuation allowance of $933,000