v3.25.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES

12. INCOME TAXES

 

The Company is subject to U.S. federal, state and foreign income taxes.

 

The income tax provision (benefit) for the years ended December 31, 2024, 2023, and 2022 consisted of the following:

 

   For the Years Ended
 
   December 31, 
   2024   2023   2022 
Federal:               
Current  $-   $-   $- 
Deferred   (9,133)   (7,129)   (22,605)
                
State:               
Current   177    -    - 
Deferred   (2,564)   426    (1,430)
                
Foreign:               
Current   538    1,493    317 
Deferred   (3,513)   (7,995)   (4,120)
    (14,495)   (13,205)   (27,837)
Change in valuation allowance   15,209    14,699    28,145 
Provision for income taxes  $714   $1,494   $308 

 

No federal current tax provision has been recorded for the years ended December 31, 2024, 2023, and 2022 because the Company had net operating losses for federal tax purposes. However, a foreign tax provision was recorded related to the Company’s operations in India. The net operating loss carryovers may be subject to annual limitations under Internal Revenue Code Section 382, and similar state provisions, should there be a greater than 50% ownership change as determined under the applicable income tax regulations. The amount of the limitation would be determined based on the value of the company immediately prior to the ownership change and subsequent ownership changes could further impact the amount of the annual limitation. An ownership change pursuant to Section 382 may have occurred in the past or could happen in the future, such that the NOLs available for utilization could be significantly limited. The Company will perform a Section 382 analysis in the future. The related decrease in the deferred tax asset will be offset by the decrease in valuation allowance.

 

 

BLINK CHARGING CO.

Notes to Consolidated Financial Statements

(in thousands, except for share and per share amounts)

 

12. INCOME TAXES – CONTINUED

 

A reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows:

 

   2024   2023   2022 
   For the Years Ended 
   December 31, 
   2024   2023   2022 
Tax benefit at federal statutory rate   (21.0

)%

   (21.0)%   (21.0)%
State income taxes, net of federal benefit   (1.2)%   0.2%   (1.3)%
Permanent differences:               
Stock compensation   0.2%   1.5%   0.6%
Impairment of intangibles and goodwill   13.5%   9.8%   0.0%
Section 162(m)   0.0%   1.9%   1.7%
Other permanent differences   0.0%   0.2%   0.7%
Tax credits   0.0%   0.0%   0.0%
Income from non-includable foreign entities   2.0%   1.8%   4.3%
Deferred adjustments and true-up   0.6%   

2.3

%   (11.2)%
Change in valuation allowance   7.7%   7.3%   30.8%
Foreign tax   (1.5)%   (3.2)%   (4.2)%
Effective income tax rate   0.4%   0.7%   0.3%

 

The Company has determined that a valuation allowance for the entire net deferred tax asset is required. A valuation allowance is required if, based on the weight of evidence, it is more likely than not that some or the entire portion of the deferred tax asset will not be realized. After consideration of all the evidence, both positive and negative, management has determined that a full valuation allowance is necessary to reduce the deferred tax asset to zero, the amount that will more likely not be realized.

 

The disaggregation of the Company’s domestic and foreign pre-tax loss for the years ended December 31, 2024, 2023, and 2022, is as follows:

 

   2024   2023   2022 
   For the Year Ended
December 31,		 
   2024   2023   2022 
U.S.  $(178,810)  $(151,883)  $(76,528)
Foreign   (18,608)   (50,316)   (14,724)
Total  $(197,418)  $(202,199)  $(91,252)

 

 

BLINK CHARGING CO.

Notes to Consolidated Financial Statements

(in thousands, except for share and per share amounts)

 

12. INCOME TAXES – CONTINUED

 

The tax effects of temporary differences that give rise to deferred tax assets and liabilities are presented below:

 

   2024   2023 
   December 31 
   2024   2023 
Deferred Tax Assets:          
Net operating loss carryforwards-federal  $71,205   $64,075 
Net operating loss carryforwards-states   12,160    9,837 
Net operating loss carryforwards-UK   6,560    4,759 
Net operating loss carryforwards-Belgium   10,523    8,454 
Tax credits   686    656 
Stock-based compensation   560    1,542 
Accruals   958    513 
Deferred revenue   1,763    2,052 
Allowance for doubtful accounts   1,536    1,180 
Goodwill   682    714 
Capitalized Sec.174 R&D   2,148    1,154 
Lease liability   1,945    1,781 
Other   1,956     497 
Deferred tax assets, gross   112,682    97,214 
Deferred Tax Liabilities:          
Intangible assets   (2,197)   (3,743)
Fixed assets   (3,453)   (2,226)
Unrealized gain/loss   (175)   (80)
Lease Asset   (1,685)   (1,644)
Other   (257)   (81)
Deferred tax liabilities, gross   (7,767)   (7,774)
           
Net deferred tax assets   104,915    89,440 
Valuation allowance   (104,889)   (89,414)
Deferred tax assets, net of valuation allowance   26    26 
           
Change in valuation allowance  $15,475   $21,024 

 

As of December 31, 2024, the Company had net operating loss carry forwards for federal income tax purposes of approximately $339,082 of which, $86,636 may be used to offset future taxable income through 2037 and the remaining $252,446 of net operating loss carry forwards incurred after 2017, do not have an expiration date. In addition, state NOLs carryforwards available are approximately $224,120, as of December 31, 2024. As of December 31, 2024, the Company had net operating loss carry forwards for foreign income tax purposes of $76,616, these net operating losses carry forwards can be carried forward indefinitely. The Company also has approximately $686 in business credits expiring between 2030 and 2043.

 

 

BLINK CHARGING CO.

Notes to Consolidated Financial Statements

(in thousands, except for share and per share amounts)