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

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Significant components of the Company's deferred tax assets and liabilities from continuing operations are as follows at the respective year ends:


(in thousands)	2024		2023
Deferred income tax assets:

Inventory valuation reserves	$	1,570	$	1,829

Inventory capitalization	550		360




Accrued bonus	318		127

State net operating loss carryforwards	2,055		2,239
Federal net operating loss carryforwards	4,075		2,209


Lease liabilities	7,484		7,415


Interest Limitation Carryforwards	1,488		1,396
Intangible asset basis differences	781		2,564
Other	1,444		1,932
Total deferred income tax assets	19,765		20,071
State valuation allowance	(2,026)		(1,641)
Federal valuation allowance	(7,040)		—
Total net deferred income tax assets	10,699		18,430

Deferred income tax liabilities:
Fixed asset basis differences	4,010		5,478
Prepaid expenses	300		445
Lease assets	6,709		6,699


Total deferred income tax liabilities	11,019		12,622
Deferred income taxes, net	$	(320)	$	5,808

Significant components of the provision for income taxes are as follows:

The reconciliation of income tax computed at the U. S. federal statutory tax rates to income tax expense is:


(in thousands)	2024				2023
	Amount		%		Amount		%
Tax at U.S. statutory rates	$	(1,064)	21.0	%	$	(8,616)	21.0	%
State income taxes, net of federal tax benefit	112		(2.2)	%	(585)		1.4	%
State valuation allowance	400		(7.9)	%	270		(0.7)	%
Federal valuation allowance	6,539		(129.2)	%	—		—	%
Stock option compensation	37		(0.7)	%	87		(0.2)	%




Other nondeductible expenses	(5)		0.1	%	33		(0.1)	%

Goodwill impairment	—		—	%	2,049		(5.0)	%
Other, net	140		(2.7)	%	(162)		0.5	%
Total	$	6,159	(121.6)	%	$	(6,924)	16.9	%