Company: OPGN
Filing Date: 2025-08-21
Form Type: 10-K
Source: 0001829126-25-006628
Chunk: 2097

Company: OPGEN INC
Filing Date: 2025-08-21
Form: 10-K
Item: Item 12
Chunk 2097
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 provision (benefit) from applying federal statutory tax rates to the pre-tax loss and actual income tax provision (benefit) relates to the effect of the following:

    Schedule of expected income tax provision (benefit) from applying federal statutory tax rates to the pre-tax loss and actual income tax
provision (benefit)

    2024

    2023

    Federal income tax benefit at statutory rates

    21.0
    %

    21.0
    %
  
    Permanent adjustment

    11.3
    %

    (0.1
    )%
  
    Provision to return adjustment

    1.0
    %

    0.2
    %
  
    State income tax benefit, net of federal benefit

    3.6
    %

    10.7
    %
  
    Foreign rate differential

    (8.5
    )%

    (11.6
    )%
  
    Adjustment on deferred foreign intangible

    (30.8
    )%

    0.0
    %
  
    Foreign income tax

    1.2
    %

    0.0
    %
  
    Lost or expired NOLs

    5.4
    %

    (7.0
    )%
  
    Blended state tax rate change effect on deferrals

    (10.7
    )%

    0.0
    %
  
    Change in valuation allowance

    10.1
    %

    (13.2
    )%
  
    Other

    (2.1
    )%

    0.0
    %
  
    Total 

    1.5
    %

    0.0
    %

Management followed the guidance in ASC 740, which states that “a cumulative loss in recent years is a significant piece of negative evidence that is difficult to overcome” and concluded that the Company’s net deferred tax assets were not realizable as of December 31, 2024 and 2023. Accordingly, a valuation allowance has been recorded to offset the net deferred tax assets in their entirety.

The Company has federal NOL carryforwards of
$227.1
227,148,055 million and $241.1
million at December 31, 2024 and 2023, respectively. The NOL carryforwards incurred prior to 2018 began expiring in 2022. In