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, 2025

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 (benefit) expense are summarized as follows:


	Year ended December 31,
(in thousands, except percentages)	2025					2024
Income tax (benefit) at statutory rate (continuing operations)	$	(2,398	)	21.0	%	$	(2,156	)	21.0	%
State income tax (benefit) expense, net of federal benefit		395		(3.5	)%		464		(4.5	)%
Tax credits		-		0.0	%		(3	)	0.0	%
Changes in valuation allowance		1,873		(16.4	)%		1,930		(18.8	)%
Nontaxable or nondeductible items		9		(0.1	)%		34		(0.3	)%
Other reconciling items		102		(0.9	)%		(228	)	2.2	%
Income tax (benefit) expense	$	(19	)	0.2	%	$	41		(0.4	)%

Schedule of Provision Expense for Income Taxes

The provision expense for income taxes consist of the following:


	Year ended December 31,
(in thousands)	2025			2024
Current:
State	$	(19	)	$	41
Total current		(19	)		41
Deferred:
Total deferred		-			-
Total income tax (benefit) expense	$	(19	)	$	41

Schedule of Components of Net Deferred Income Taxes

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


	December 31,
(in thousands)	2025			2024
Deferred tax assets:
Net operating loss	$	66,904		$	60,925
Unrealized loss on digital assets		86			91
Tax credits		1,593			1,593
Reserves and accruals		28			53
Leases - lease liability		140			226
Amortization of acquired intangibles		220			4,080
Other deferred tax assets		203			490
Gross deferred tax assets		69,174			67,458

Less valuation allowance		(68,945	)		(67,072	)
Total deferred tax assets		229			386

Deferred tax liabilities:
Leases - right of use asset		(125	)		(204	)
Other deferred tax liabilities		(104	)		(182	)
Total deferred tax liabilities		(229	)		(386	)
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,
(in thousands)	2025		2024
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