Company: DOMO
Filing Date: 2025-04-04
Form Type: 10-K
Source: 0001505952-25-000045
Chunk: 172

Company: DOMO, INC.
Filing Date: 2025-04-04
Form: 10-K
Item: Item 8
Chunk 172
---
):As of January 31,20242025Deferred tax assets:Net operating loss carryforwards$315,082 $316,434 Research and development credit carryforwards25,013 26,398 174 Expense21,403 22,899 163(j) interest limitation16,759 20,044 Stock based compensation6,992 5,077 Lease liability3,969 3,663 Deferred revenue682 712 Accruals and other reserves502 618 Foreign acquisition costs33 — Other515 717 Gross deferred tax assets390,950 396,562 Valuation allowance(375,505)(381,262)Total deferred tax assets, net of valuation allowance15,445 15,300 Deferred tax liabilities:Contract acquisition costs(8,306)(8,452)Capitalized software(4,583)(4,843)Right-of-use assets(2,923)(2,845)Basis difference in intangible assets(350)(268)Other(190)— Total deferred tax liabilities(16,352)(16,408)Net deferred tax liabilities$(907)$(1,108)In assessing whether deferred tax assets should be recognized, the Company considered whether it is more-likely-than-not that some portion or all of the deferred tax assets would be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company considered the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. While limited losses may be utilized due to capitalization of research and development expense, the Company determined it was more-likely-than-not that its domestic deferred tax assets would not be realized as of January 31, 2024 and 2025 and, accordingly, recorded a full valuation allowance. Net deferred tax liabilities are included in other liabilities, noncurrent on the consolidated balance sheets.As of January 31, 2025, the Company had federal and state NOLs available to offset future taxable income, if any, of $1,183.2 million and $1,364.4 million, respectively. The federal NOLs will begin to expire in 2032. The state NOLs will expire depending upon the various rules in the states in which the Company operates. Full realization of the NOLs is dependent on generating sufficient taxable income prior to their expiration. The ability to