Company: NGVC
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001437749-25-037556
Chunk: 617

Company: Natural Grocers by Vitamin Cottage, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 7A
Chunk 617
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The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are as follows, dollars in thousands:

			As of September 30,

			2025

			2024

			Deferred tax assets:

			Trademarks

			$
			563

			562

			Finance lease liabilities

			12,132

			11,511

			Operating lease liabilities

			68,881

			73,037

			Research and experimental expenditures

			855

			955

			Accrued paid time off

			802

			768

			Equity compensation (1)

			983

			509

			Other (1)

			791

			435

			Gross deferred tax assets

			85,007

			87,777

			Deferred tax liabilities:

			Property and equipment

			(15,790
			
			)

			(17,796
			
			)

			Finance lease assets

			(10,461
			
			)

			(9,944
			
			)

			Operating lease assets

			(63,442
			
			)

			(67,426
			
			)

			Leasehold improvements

			(1,906
			
			)

			(1,919
			
			)

			Prepaid expenses (1)

			(503
			
			)

			(635
			
			)

			Goodwill (1)

			(737
			
			)

			(523
			
			)

			Other (1)

			(31
			)

			(5
			)

			Gross deferred tax liabilities

			(92,870
			)

			(98,248
			)

			Net deferred tax liabilities

			$
			(7,863
			)

			(10,471
			)

(1) Equity compensation, prepaid expenses and goodwill at September 30, 2024 have been reclassified from other to be consistent with the current period presentation.

The Company believes that it is more likely than not that it will fully realize all deferred tax assets in the form of future deductions based on the nature of the deductible temporary differences and expected future taxable income.

The Company did not utilize any federal income tax loss or tax credit carryforwards