Company: BL
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001666134-25-000003
Chunk: 162

Company: BLACKLINE, INC.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 162
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Contingent consideration— %(11.6)%15.7 %Nondeductible meals and entertainment0.5 %0.7 %(1.1)%Foreign-derived intangible income tax benefit(1.8)%— %— %Other(0.2)%— %(0.3)%(34.5)%2.4 %28.5 %

93

Significant components of the Company’s deferred tax assets and liabilities were as follows (in thousands):December 31,20242023Deferred tax assetsNet operating loss carryforwards$14,906 $55,779 Research and other credits17,288 39,248 Capitalized R&D40,131 28,455 Stock-based compensation7,570 7,811 Operating and finance leases3,382 3,343 Accrued expenses and other current liabilities7,300 5,445 Other2,962 779 Total deferred tax assets93,539 140,860 Less: valuation allowance(4,677)(92,079)Deferred tax assets, net of valuation allowance88,862 48,781 Deferred tax liabilitiesIntangible assets(13,801)(18,698)Prepaid expenses(23,194)(24,861)Operating lease right-of-use and finance lease assets(3,191)(2,973)Accretion on investment— (8,253)Other— (245)Total deferred tax liabilities(40,186)(55,030)Net deferred taxes$48,676 $(6,249)ASC 740, Income Taxes, requires that the tax benefit of net operating losses, temporary differences, and credit carryforwards be recorded as an asset to the extent that management assesses that realization is “more likely than not.” A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. Realization of future tax benefits is dependent on the Company’s ability to generate sufficient taxable income within the carryforward period. During the quarter ended December 31, 2024, the Company determined that the $89.1 million U.S. deferred tax asset valuation allowance was no longer required. This determination was based on an evaluation of positive and negative factors, including, but not limited to, the Company’s achievement of adjusted pre-tax income resulting in a three-year cumulative income position as of December 31, 2024, the Company’s full utilization