Company: LASR
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001124796-25-000021
Chunk: 61

Company: NLIGHT, INC.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 8
Chunk 61
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 387 293 Intangible assets21,720 16,612 9,184 Total gross deferred tax assets84,403 75,037 67,707 Less: valuation allowance(81,480)(72,461)(64,796)Total deferred tax assets2,923 2,576 2,911 Deferred tax liabilities:Right-of-use assets(2,213)(2,487)(2,869)Total deferred tax liabilities(2,213)(2,487)(2,869)Net deferred tax assets$710 $89 $42     Net deferred tax assets are included in Other assets, net in our Consolidated Balance Sheets. In evaluating our valuation allowance, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and recent financial performance. Due to uncertainty with respect to ultimate realizability of deferred tax assets, we have provided a full valuation allowance against the U.S. deferred tax assets and a partial valuation allowance against the China deferred tax assets. The net change in the total valuation allowance for the years ended December 31, 2024, 2023 and 2022 were increases of $9.0 million, $7.7 million and $10.6 million, respectively. At December 31, 2024, we had U.S., China, and state net operating loss (NOL) carryforwards of $169.6 million, $8.4 million, and $52.9 million, respectively. These carryforwards will expire from 2025 to 2044 if not used by us to reduce taxable income in future periods. We have U.S. research and development credit carryforwards of $9.9 million. These carryforwards will expire from 2025 to 2044 if not used by us to reduce income taxes payable in future periods.  Utilization of NOL carryforwards, credit carryforwards and certain deductions have been subject to annual limitations due to ownership change limitations provided by the Internal Revenue Code of 1986, as amended. We have had three "change in ownership" events that limit the utilization of NOL carryforwards, which occurred twice in August of 2000 and once in January of 2001, and resulted in NOL carryforward limitations totaling $528 thousand. Additional limitations on the use of these tax attributes could occur in the event of possible disputes arising in examination from various taxing authorities.