Company: APPN
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001441683-25-000017
Chunk: 134

Company: APPIAN CORP
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 134
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 included $27.3 million of tax expense attributable to the change in the valuation allowance in the United States and Switzerland, partially offset by $10.3 million of favorable tax benefits for research credits. In 2022, the effective tax rate of (0.5)% included $39.2 million of tax expense attributable to the change in the valuation allowance in the United States, Switzerland, and Germany partially offset by $8.6 million of favorable tax benefits for research credits.

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APPIAN CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Deferred tax assets and liabilities reflect the net tax effects of temporary differences between the carrying amount of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. As of December 31, 2024 and 2023, significant components of our deferred tax assets and liabilities were as follows (in thousands): As of December 31,20242023Deferred tax assets:Net operating losses$107,170 $103,299 Tax credits34,885 29,582 Deferred revenue521 861 Equity compensation3,994 4,879 Lease liabilities17,465 18,822 Accrued compensation3,225 3,323 Bad debt502 447 Other accrued expense318 218 Capitalized research and development costs45,820 35,047 Other4,033 1,369 Gross deferred tax assets217,933 197,847 Less: Valuation allowance(187,969)(161,966)Total deferred tax assets29,964 35,881 Deferred tax liabilities:Prepaid expenses(13,298)(16,505)Right-of-use assets(8,406)(10,626)Depreciation(3,245)(3,779)Intangible assets(688)(1,179)Other(198)(341)Total deferred tax liabilities(25,835)(32,430)Net deferred tax assets$4,129 $3,451 As of December 31, 2024 and 2023, we had $287.5 million and $295.9 million, respectively, of gross net operating loss (“NOL”) carryforwards for U.S. federal tax purposes. U.S. federal NOL carryforwards in the gross amount of $16.6 million and generated prior to 2018 will expire, if unused, in 2037. Under the Tax