Company: ADPT
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000950170-25-030913
Chunk: 196

Company: Adaptive Biotechnologies Corp
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1B
Chunk 196
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 net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of our deferred tax assets and liabilities as of the dates presented were as follows (in thousands): 

        December 31,

        2024

        2023

        Deferred tax assets

        Net operating losses
         
        $
        274,535

        $
        251,724

        Tax credit carryforward

        45,942

        43,528

        Nonqualifying stock options

        31,010

        29,166

        Operating lease liabilities

        22,912

        25,357

        Deferred revenue

        14,996

        18,874

        Capitalized research and development

        49,550

        42,134

        Tangible and intangible assets

        1,963

        —

        Other

        6,182

        6,146

        Total deferred tax assets

        447,090

        416,929

        Less: Valuation allowance

        (435,509
        )

        (402,424
        )

        Deferred tax assets, net of valuation allowance

        11,581

        14,505

        Deferred tax liabilities

        Tangible and intangible assets

        —

        (1,281
        )

        Right-of-use assets

        (11,581
        )

        (13,224
        )

        Net deferred taxes
         
        $
        —

        $
        —

      ASC Topic 740, Income Taxes, requires that the tax benefit of net operating losses ("NOLs"), temporary differences and credit carryforwards be recorded as an asset to the extent that management assesses that realization is “more likely than not.” Realization of the future tax benefits is dependent on our ability to generate sufficient taxable income within the carryforward period. Because of our history of operating losses, management believes that recognition of the deferred tax assets arising from the above-mentioned future tax benefits is currently not likely to be realized and, accordingly, has provided a valuation allowance. The valuation allowance increased by $33.1 million and $55.8 million during the year ended December 31, 2024 and 2023, respectively.Federal tax laws impose substantial restrictions on the utilization of NOL and credit carryforwards in the event of an ownership change