Company: BLND
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0001855747-25-000017
Chunk: 83

Company: Blend Labs, Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 8
Chunk 83
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 interest(15)(249)(9,226)Other306 263 (30)Total provision for income taxes$109 $94 $(2,241)Deferred income taxes reflect the net tax effects of loss and credit carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows:

115

Blend Labs, Inc.Notes to Consolidated Financial Statements

December 31, 2024December 31, 2023(in thousands)Deferred tax assets:Net operating loss carryforwards$163,431 $145,096 Lease liabilities947 2,684 Research and other credits25,297 21,697 Accruals and reserves982 1,046 Interest expense limitation15,023 13,437 Stock-based compensation6,285 9,421 Fixed assets1,469 1,382 Capitalized research and development costs37,428 44,586 Other deferred tax assets100 2,910 Gross deferred tax assets250,962 242,259 Less: valuation allowance(246,310)(237,205)Total deferred tax assets4,652 5,054 Deferred tax liabilities:Right-of-use assets$(360)$(1,997)Deferred contract costs(1,016)(858)ASC 606 adjustments(3)(3)Other deferred tax liabilities(2,038)(918)Amortization(745)(749)Acquired intangible assets(490)(495)Gross deferred tax liabilities(4,652)(5,020)Total net deferred tax assets$— $34 Included in the Company’s deferred tax assets and liabilities are the deferred tax effects associated with the fair value of the assets acquired and liabilities assumed from the acquisition of Title365 and acquired tax attributes that carry over to post-acquisition tax periods, including U.S. and state net operating losses and tax credits.At December 31, 2024, the Company believes that, based on available evidence, both positive and negative, it is more likely than not that the net deferred tax assets will not be utilized.  At December 31, 2024, the Company had a valuation allowance of $246.3 million. The valuation allowance increase of $9.1 million during 2024 is primarily attributable to an increase in deferred tax assets resulting from net operating losses in 202