Company: DOMO
Filing Date: 2025-09-05
Form Type: 10-Q
Source: 0001505952-25-000075
Chunk: 9

Company: DOMO, INC.
Filing Date: 2025-09-05
Form: 10-Q
Item: Item 1A
Chunk 9
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 tax laws or revised interpretations of existing tax laws and precedents, which could harm our liquidity and operating results. In addition, the authorities in these jurisdictions could review our tax returns and impose additional tax, interest and penalties, and the authorities could claim that various withholding requirements or other taxes apply to us or our subsidiaries or assert that benefits of tax treaties are not available to us or our subsidiaries, any of which could adversely affect our operating results. 

Further, many countries and the Organization for Economic Cooperation and Development have proposed to reallocate some portion of profits of large multinational companies to markets where sales arise, known as “Pillar One,” as well as enact a global minimum tax rate of at least 15% for multinationals with global revenue exceeding certain thresholds, known as “Pillar Two,” and many countries have adopted or intend to adopt these proposals. On June 28, 2025, the G7 released a joint Statement on Global Minimum Tax, announcing an understanding regarding a proposed “side-by-side” solution that would exempt U.S. multinational businesses from some of the Pillar Two rules (including the 15% global minimum tax adopted by certain members of the EU and other countries). The OECD released a draft proposal, dated August 13, 2025, to exclude U.S. multinational companies from key minimum tax enforcement measures; however, no agreement has yet been reached. We will continue to monitor legislative and regulatory developments to assess potential impacts that Pillar Two and other OECD and non-U.S. rules may have on our business, operating results and financial condition. Changes to these and other areas in relation to international tax reform, including future actions taken by foreign governments could increase uncertainty and may adversely affect our tax rate and operating results in future years.

Our ability to use our net operating losses to offset future taxable income may be subject to certain limitations.

 As of January 31, 2025, we had net operating loss (NOL) carryforwards for federal and state income tax purposes of approximately $1,183.2 million and $1,364.4 million, respectively, which may be available to offset taxable income in the future. The federal NOLs will begin to expire in various years beginning in 2032 if not utilized. The state NOLs will expire depending on the various rules in the state jurisdictions in which we operate. A lack of future taxable income could adversely affect our ability to utilize these NOLs before they expire. 

In general, under Section 382 of the