Company: CRCT
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001828962-25-000075
Chunk: 70

Company: Cricut, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 8
Chunk 70
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 items. The estimated effective tax rate is adjusted each quarter. The estimated effective tax rate was 26.7% and 30.6% for the three months ended March 31, 2025 and 2024. The Company’s provision for income taxes was $8.7 million for the three months ended March 31, 2025, and $8.6 million for the three months ended March 31, 2024. The provision for income taxes varied from the tax computed at the U.S. federal statutory income tax rate for the three months ended March 31, 2025, primarily due to  an increase in stock based compensation difference attributable to the decrease in stock price upon vesting versus the stock price at the grant date. The Company reviews its deferred tax assets for realization based upon historical taxable income, prudent and feasible tax planning strategies, the expected timing of the reversals of existing temporary differences and expected future taxable income. The Company has concluded that it is more likely than not that the net deferred tax assets will be realized. Accordingly, the Company has not recorded a valuation allowance against net deferred tax assets for any of the periods presented.

9.Capital Structure 

As of March 31, 2025, the Company had authorized 100,000,000 shares of preferred stock, par value $0.001 per share, and 1,250,000,000 shares of common stock, par value $0.001 per share, which was divided between two series: Class A common stock and Class B common stock. As of March 31, 2025, the Company had 1,000,000,000 shares of Class A common stock and 250,000,000 shares of Class B common stock authorized and 51,628,985 shares of Class A common stock and 160,146,587 shares of Class B common stock issued and outstanding. Each share of Class A common stock is entitled to one vote per share. Each share of Class B common stock is entitled to five votes per share and is convertible at any time into one share of Class A common stock. During the three months ended March 31, 2025 and 2024, 703,636 and 1,027,258 shares of Class B common stock were converted to Class A common stock, respectively. Stock Repurchase ProgramOn July 19, 2022, the Company’s Board of Directors approved a common stock repurchase program to purchase shares of its outstanding Class A common stock up