Company: FLYW
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0000950170-25-027078
Chunk: 56

Company: Flywire Corp
Filing Date: 2025-02-26
Form: 10-K
Item: Item 8
Chunk 56
---
        $
        20,042

        $
        15,417

        Deferred tax liabilities:

        Intangible assets

        (25,008
        )

        (15,234
        )

        Goodwill

        (1,318
        )

        (7,843
        )

        Right-of-use asset

        (669
        )

        (743
        )

        Deferred revenue

        —

        (2,387
        )

        Deferred contract costs

        (2,105
        )

        (2,668
        )

        Other temporary differences

        (19
        )

        (38
        )

        Total deferred tax liabilities

        (29,119
        )

        (28,913
        )

        Net deferred tax liabilities
         
        $
        (9,077
        )
         
        $
        (13,496
        )
       
      As of December 31, 2024, the Company had gross federal and state NOL carryforwards of $57.9 million and $88.3 million, respectively, out of which $1.1 million of federal NOL carryforwards and $87.0  million of state NOL carryforwards begin to expire in 2032 and 2029, respectively. Additionally, $56.8 million of federal NOL carryforwards and $1.2 million of state NOL carryforwards have indefinite lives. As of December 31, 2024, the Company has gross foreign NOL carryforwards of $4.9 million which have indefinite lives. The federal, state and foreign NOL carryforwards may be available to reduce future federal, state and foreign taxable income, respectively.Ownership changes, as defined under Internal Revenue Code Section 382, and similar state provisions may limit the amount of federal and state NOL carryforwards that can be utilized annually to offset future federal and state taxable income. Generally, an ownership change occurs when the ownership percentage of 5% or greater stockholders increases by more than 50% over a three-year period. Accordingly, the purchase of the Company’s stock in amounts greater than specified levels could limit the Company’s ability to utilize federal and state NOL carryforwards for tax purposes. During 2022, the Company completed a Section 382 study and as a result of the ownership changes identified, $1.6 million of Flywire’s NOLs and $0.2 million of Simplee’s