Phunware, Inc. Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Effective Income Tax Rate Reconciliation

The difference between income taxes expected at the U.S. federal statutory income tax rate of 21% and the reported income tax expense (benefit) are summarized as follows:


	Year ended December 31,
	2024			2023
Income tax (benefit) at statutory rate (continuing operations)	$	(2,156	)	$	(8,800	)
Income tax (benefit) at statutory rate (discontinued operation)		—			(2,277	)
Valuation allowance		1,930			6,319
State income tax (benefit), net of federal benefit		464			(1,289	)
Business tax credit net of reserves		(3	)		91
Non-deductible expenses (continuing operations)		(194	)		4,840
Non-deductible expenses (discontinued operation)		—			1,123
Foreign income taxes at different rate		—			22
Income tax expense (benefit)	$	41		$	29
Effective tax rate		(0.41	)%		(0.05	)%

Schedule of Provision Expense for Income Taxes

The provision expense for income taxes consist of the following:


	Year ended December 31,
	2024		2023
Current:
State	$	41	$	29
Total current		41		29
Deferred:
Total deferred		-		-
Total income tax (benefit) expense	$	41	$	29

Schedule of Components of Net Deferred Income Taxes

The components of net deferred income taxes consist of the following:


	December 31,
	2024			2023
Deferred tax assets:
Net operating loss	$	60,925		$	58,913
Unrealized loss on digital assets		91			104
Tax credits		1,593			1,940
Reserves and accruals		53			62
Leases - lease liability		226			430
Amortization of acquired intangibles		4,080			4,726
Other deferred tax assets		490			603
Gross deferred tax assets		67,458			66,778

Less valuation allowance		(67,072	)		(65,375	)
Total deferred tax assets		386			1,403

Deferred tax liabilities:
Leases - right of use asset		(204	)		(376	)
Other deferred tax liabilities		(182	)		(1,027	)
Total deferred tax liabilities		(386	)		(1,403	)
Net deferred tax liabilities	$	-		$	-

Schedule of Reconciliation of Unrecognized Tax Benefits

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits:


	December 31,
	2024		2023
Unrecognized tax benefits, beginning of period	$	1,757	$	1,757
Tax positions taken in prior periods:
Gross increases		-		-
Gross decreases		-		-

Tax positions taken in current period:
Gross increases		-		-
Settlements		-		-

Lapse of statute of limitations		-		-

Unrecognized tax benefits, end of period	$	1,757	$	1,757