Company: DOMO
Filing Date: 2025-06-06
Form Type: 10-Q
Source: 0001628280-25-029801
Chunk: 8

Company: DOMO, INC.
Filing Date: 2025-06-06
Form: 10-Q
Item: Item 1A
Chunk 8
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 Act” (House Bill). The House Bill, if enacted into law, would make a number of changes to U.S. federal income tax law, including by temporarily suspending the requirement to capitalize and amortize research and development expenditures, increasing the amount of certain deductions available for “global intangible low-taxed income” (GILTI) derived through non-U.S. subsidiaries and “foreign derived intangible income” (FDII) over the amount that would be available under current law for taxable years beginning after December 31, 2025, and imposing retaliatory taxes on certain taxpayers associated with a “discriminatory foreign country” that imposes an “unfair foreign tax.” There can be no assurances as to whether the House Bill will be enacted into law, either in its current form or an amended form. We are continuing to analyze the potential impact of the House Bill on our operations, business and financial performance.

In addition, taxation of cloud-based software is constantly evolving as many state and local jurisdictions consider the taxability of software services provided remotely. These events could require us or our customers to pay additional tax amounts on a prospective or retroactive basis, as well as require us or our customers to pay fines or penalties and interest for past amounts deemed to be due. If we raise our prices to offset the costs of these changes, existing and potential future 

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customers may elect not to continue to use or purchase subscriptions to our platform in the future. Additionally, new, modified or newly interpreted or applied tax laws could increase our customers’ and our compliance, operating and other costs, as well as the costs of our platform. Any or all of these events could harm our business and operating results. 

We are a multinational organization faced with increasingly complex tax issues in many jurisdictions, and we could be obligated to pay additional taxes in various jurisdictions. 

As a multinational organization, we are subject to taxation in several jurisdictions around the world with increasingly complex tax laws, the application of which can be uncertain, and significant judgment and estimates are required in determining our provision for income taxes. Our tax expense may be impacted if our intercompany transactions, which are required to be computed on an arm’s-length basis, are challenged and successfully disputed by tax authorities. Our policies governing transfer pricing may be determined to be inadequate and could result in additional tax assessments. The amount of taxes we pay in these jurisdictions could increase substantially as a result of changes in the applicable tax principles, including increased tax rates, new tax laws or revised interpretations of existing tax laws