Company: LPSN
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001102993-25-000018
Chunk: 110

Company: LIVEPERSON INC
Filing Date: 2025-03-14
Form: 10-K
Item: Item 7
Chunk 110
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 represents interest earned from cash deposits.

Year Ended December 31,20242023% Change(Dollars in thousands)Interest expense$(14,486)$(4,882)(197)%Interest income5,860 9,551 (39)%Gain on debt extinguishment73,083 7,200 915%Other (expense) income, net(12,800)3,234 (496)%Total other income, net$51,657 $15,103 242%

Total other income, net increased by $36.6 million to income of $51.7 million for the year ended December 31, 2024 from $15.1 million for the year ended December 31, 2023. The increase is primarily due to a gain of $73.1 million related to the extinguishment of the 2026 Notes, partially offset by a $12.2 million adjustment to the fair value of our Warrants and $14.5 million interest expense on our convertible debt. The remaining amount of total other income, net fluctuation is primarily attributable to interest income on our money market accounts, and the impact of currency rate fluctuations.

Provision For Income Taxes 

Year Ended December 31,20242023% Change(Dollars in thousands)Provision for income taxes$2,735 $4,163 (34)%

We had a provision for income taxes of $2.7 million and $4.2 million for the years ended December 31, 2024 and 2023, respectively. Our consolidated effective tax rate was impacted by the statutory income tax rates applicable to each of the jurisdictions in which we operate, valuation allowance recorded against losses generated in the U.S. and Germany and changes to unrecognized tax benefits in Israel. The overall tax provision recorded represents tax on non-U.S. earnings in the various jurisdictions in which we operate and the provision for U.S. state and local impacts. The total tax expense associated with non-U.S. jurisdictions is relatively consistent between periods.

Liquidity and Capital Resources

The following describes the Company’s cash flows for the years ended December 31, 2024 and 2023:

Year Ended December 31,20242023(In thousands)Net cash used in operating activities$(15,130)$(19,765)Net cash used in investing activities(28,216)(18,842)Net cash provided by (used in) financing activities14,972 (151,142)

As of December