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

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

The table below presents the current and deferred components of income tax expense (benefit) for the following periods:



	Year Ended
	December 31, 2024		December 31, 2023
Current:
Federal	$	—	$	—
State	67		(73)
Foreign	(284)		512
Total current income tax expense (benefit)	(217)		439

Deferred:
Federal	(122)		48
State	271		62
Foreign	(1,952)		(1,035)
Total deferred income tax expense (benefit)	(1,803)		(925)

Total income tax expense (benefit)	$	(2,020)	$	(486)

A reconciliation of the U.S. federal statutory income tax expense to actual income tax expense is as follows:




	Year Ended
	December 31, 2024			December 31, 2023
Income (loss) before income taxes	$	(116,331)		$	(27,750)
Federal statutory income tax rate	21.0		%	21.0		%
Expected federal provision (benefit) for income taxes at the federal statutory income tax rate	(24,430)			(5,828)
State income tax (benefit), net of federal tax benefit	(3,159)			(1,190)
Change in fair value of warrants	10,912			422


Permanent differences	314			136
Tax (benefits) / non-deductible expenses related to equity-based compensation	(636)			984
Acquisition costs	219			—

Change in valuation allowance	16,153			4,808
Other	(1,393)			182
Total income tax expense (benefit)	$	(2,020)		$	(486)

Effective tax rate	1.7		%	1.8		%

The table below presents the components of deferred tax assets, net and deferred tax liabilities:


	December 31, 2024		December 31, 2023
Deferred tax assets:
Accrued expenses and reserves	$	456	$	1,992
Capitalized research and development expenses	4,528		2,241

Tax credit carryforwards	243		240
Deferred revenue	1,367		1,217
Net operating loss carryforwards	38,676		20,371
Interest disallowance	10,007		6,640
Equity-based compensation	2,643		1,580
Lease liability	4,956		4,454
Other assets	62		54
Total deferred tax assets	62,938		38,789
Less: valuation allowance	(45,324)		(23,821)
Deferred tax assets, net of valuation allowance	17,614		14,968

Deferred tax liabilities:
Right-of-use asset	$	(4,291)	$	(3,725)

Depreciation and amortization	(13,616)		(13,523)
Other	(217)		(122)
Deferred tax liabilities	(18,124)		(17,370)
Total net deferred tax assets (liabilities)	$	(510)	$	(2,402)

The table below presents the change in valuation allowance for the following periods:







Valuation allowance as of December 31, 2022	$	(19,013)
Income tax expense	(4,808)
Valuation allowance as of December 31, 2023	$	(23,821)
Acquired deferred tax assets	(5,350)
Income tax expense	(16,153)
Valuation allowance as of December 31, 2024	$	(45,324)

The table below presents changes in reserves for unrecognized income tax benefits for the following periods:



	Year Ended
	December 31, 2024		December 31, 2023
Unrecognized tax benefits, beginning of period	$	1,380	$	1,380
Increase (decrease) for tax positions taken related to a prior period	—		—

Unrecognized tax benefits, end of period	$	1,380	$	1,380