Company: ADAMM
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001273685-25-000072
Chunk: 95

Company: ADAMAS TRUST, INC.
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 95
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0252024Current income tax (benefit) expense $(168)$— $486 $163 Deferred income tax expense7 342 1 69 Total income tax (benefit) expense$(161)$342 $487 $232 Deferred Tax Assets and LiabilitiesThe major sources of temporary differences included in the deferred tax assets (liabilities) and their deferred tax effect as of June 30, 2025 and December 31, 2024, respectively, are as follows (dollar amounts in thousands): June 30, 2025December 31, 2024Deferred tax assets  Net operating loss carryforward$7,652 $9,671 Capital loss carryover20,168 16,259 GAAP/Tax basis differences4,160 11,346 Deferred tax assets31,980 37,276 Less: Valuation allowance (28,134)(26,412)Net deferred tax assets (1)3,846 10,864 Deferred tax liabilities  GAAP/Tax basis differences2,265 9,282 Deferred tax liabilities (2)2,265 9,282 Total net deferred tax asset$1,581 $1,582 (1)Included in other assets in the accompanying condensed consolidated balance sheets.(2)Included in other liabilities in the accompanying condensed consolidated balance sheets.    As of June 30, 2025, the Company, through wholly-owned TRSs, had incurred net operating losses in the aggregate amount of approximately $34.5 million. The Company’s carryforward net operating losses can be carried forward indefinitely until they are offset by future taxable income. Additionally, as of June 30, 2025, the Company, through its wholly-owned TRSs, had also incurred approximately $90.9 million in capital losses. The Company's carryforward capital losses will expire between 2025 and 2030 if they are not offset by future capital gains. As of June 30, 2025, the Company has recorded a valuation allowance against certain deferred tax assets as management does not believe that it is more likely than not that these deferred tax assets will be realized. The change in the valuation for the current year is an increase of approximately $1.7 million. The Company will continue to monitor positive and negative evidence related to the utilization of the remaining deferred tax assets for which a valuation allowance continues to be provided. 

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The Company files income