Company: HGBL
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0000950170-25-038691
Chunk: 47

Company: Heritage Global Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 15
Chunk 47
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.7 million per annum through December 31, 2023. As of December 31, 2023, all of the Company's restricted net operating loss carry forwards have been fully utilized. The Company has no net operating loss carry forwards limited under Section 382 of the Internal Revenue Code as of December 31, 2024.All loss taxation years remain open for audit pending the application of the respective tax losses against income in a subsequent taxation year. In general, the statute of limitations expires three years from the date that a company files a tax return applying prior year tax loss carry forwards against income for tax purposes in the later year. The 2021 through 2023 taxation years remain open for audit.The Company is subject to state income tax in multiple jurisdictions. In most states, the Company does not have tax loss carry forwards available to shield income attributable to a particular state from being subject to tax in that particular state.The reported tax expense varies from the amount that would be provided by applying the statutory U.S. Federal income tax rate to the income before income tax expense for the following reasons in each of the years ended December 31, (in thousands except for percentages): 

        2024

        2023

        Dollars

        Percent

        Dollars

        Percent

        Expected income tax expense at federal statutory rate
         
        $
        1,885

        21.0
        %
         
        $
        2,939

        21.0
        %

        Increase (reduction) in taxes resulting from:

        State income taxes

        656

        7.3
        %

        996

        7.1
        %

        Non-deductible expenses (permanent differences)

        (22
        )

        (0.2
        )%

        (196
        )

        (1.4
        )%

        Change in valuation allowance

        1,290

        13.9
        %

        (2,205
        )

        (15.8
        )%

        Changes in unrecognized tax benefits

        (18
        )

        (0.2
        )%

        (14
        )

        (0.8
        )%

        Income tax expense
         
        $
        3,791

        41.8
        %
         
        $
        1,520

        10.1
        %
       
      Income tax expense (benefit) for