XML 34 R22.htm IDEA: XBRL DOCUMENT v3.25.4
INCOME TAXES
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
For the years ended December 31, 2025, and 2024, the components of the provision for income taxes were as follows:
Year Ended December 31,
(in thousands)20252024
Current:
Federal$— $2 
State and Local29 15 
Foreign(15)115 
Total current provision$14 $132 
Deferred:  
Federal$— $— 
State and local— — 
Foreign— — 
Total deferred provision$— $— 
Total tax provision$14 $132 
For the year ended December 31, 2025, the following table reconciles the Company's effective income tax rate to the U.S. federal statutory income tax rate:
Year ended December 31, 2025
(in thousands, except percentages)Total%
Loss before income taxes(6,413)
U.S. federal statutory income tax provision (benefit)$(1,347)21.0 %
State and Local Income Tax, Net of Federal Income Tax Effect (a)
(137)2.1 %
Foreign Withholding Taxes(15)0.2 %
Nontaxable or Nondeductible Items
Officers Compensation1,473 (23.0)%
Stock Compensation Windfall(861)13.4 %
Other Permanent Items13 (0.2)%
Changes in Valuation Allowance769 (12.0)%
Other
Other119 (1.9)%
Effects of Changes in Tax Law— — %
Tax Credits— — %
Changes in Unrecognized Tax Benefits— — %
Total Effective Tax Rate$14 (0.2)%
(a) State taxes in CA, IL, NY, and NYC made up the majority (greater than 50%) of the tax effect in this category.
The amounts of cash taxes (refunded) paid by CuriosityStream are as follows:
Year Ended December 31,
(in thousands)20252024
Federal$— $— 
State29 9 
Foreign
Foreign Withholding Taxes(216)— 
Others 170 — 
Income Taxes, Net of Amounts Refunded(17)9 
Other Taxes— — 
Total$(17)$9 
For the years ended December 31, 2024, the following table reconciles the Company’s effective income tax rate to the U.S. federal statutory income tax rate:
Year ended December 31, 2024
(in thousands, except percentages) Total%
Loss before income taxes$(12,809)
U.S. federal statutory income tax provision (benefit)$(2,697)21.1 %
State Taxes(351)2.7 %
Permanent Items1,013 (7.9)%
Change in Valuation Allowance(1,782)13.9 %
Deferred Adjustments3,314 (25.9)%
RTP Adjustments229 (1.8)%
Foreign Withholding Taxes115 (0.9)%
Current/Deferred Rate Differential2 — %
Change in State Rate266 (2.1)%
Other23 (0.2)%
Total tax provision$132 (1.0)%
Deferred income taxes reflect the net tax effect of temporary differences between the amounts recorded for financial reporting purposes and the bases recognized for tax purposes. As of December 31, 2025, and 2024, the significant components of deferred tax assets and liabilities were as follows:
Year Ended December 31,
(in thousands)
20252024
Deferred tax assets:
Net operating loss carryforwards$55,414 $56,835 
Accrued expenses and reserves1,289 712 
Intangibles and content assets6,539 7,267 
Stock based compensation1,780146 
Lease liability895 1,031 
Equity method investment in Spiegel848 574 
Other182 228 
Total deferred tax asset66,947 66,793 
Valuation allowance(66,311)(66,055)
Deferred tax assets, net of valuation allowance$636 $738 
Deferred tax liabilities:
ROU asset(636)(738)
Deferred tax liabilities, net$— $— 
As of December 31, 2025, and 2024, the Company maintained a valuation allowance on substantially all of its deferred tax assets. The deferred tax assets predominantly relate to operating losses, intangibles and content assets, and stock-based compensation. As a result of Legacy CuriosityStream’s conversion from an LLC to a C corporation in 2018, Legacy CuriosityStream recognized a partial step-up in the tax basis of intangibles and content assets that will be recovered as those assets are sold or the basis is amortized. On the date of the conversion, Legacy CuriosityStream recorded an estimated net deferred tax asset relating to this partial step-up in tax basis.
The valuation allowance was determined in accordance with applicable accounting guidance, which requires an assessment of both positive and negative evidence when determining whether it is more likely than not that deferred tax assets are recoverable. Such assessment is required on a jurisdiction-by-jurisdiction basis. The Company’s history of cumulative losses, along with expected future U.S. losses, required that the Company record a full valuation allowance against all net deferred tax assets. The Company intends to maintain a full valuation allowance on net deferred tax assets until sufficient positive evidence exists to support a reversal of the valuation allowance.
As of December 31, 2025, and 2024, the Company held federal net operating loss (“NOL”) carryforwards of approximately $223.6 million and $228.6 million, respectively. This balance includes $7.3 million that expires in 2037 and $216.3 million that has an indefinite carryforward period. As of December 31, 2025, and 2024, the Company held gross state NOL carryforwards of approximately $142.8 million and $144.5 million, respectively, which begin to expire in 2028.
Pursuant to Section 382 of the Internal Revenue Code, or IRC, annual use of the Company’s NOL carryforwards may be limited in the event a cumulative change in ownership of more than 50% occurs within a three-year period. Such ownership change could result in annual limitations on the utilization of tax attributes, including NOL carryforwards and tax credits. The Company performed an analysis to determine if any ownership changes occurred as of year end 2025 and a change was identified. While this limitation may restrict the timing of the utilization of NOLs, due to the large net unrealized built-in-gain and projected recognized built-in-gain recognitions, the Company does not expect a significant portion of its NOLs to expire unused.
The Company has not been audited by the IRS or any state income or franchise tax agency, but tax returns remain open to examination subject to a three to four year statute of limitations, depending on the state.
The Company has not recorded a liability related to uncertain tax positions in the consolidated financial statements. The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not that the position is sustainable upon examination by the taxing authority, based on the technical merits. The tax benefit recognized is measured as the largest amount of benefit which is more likely than not (greater than 50% likely) to be realized upon settlement with the taxing authority. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in its tax provision.
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into law. The OBBBA includes significant provision, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework, and the restoration of favorable tax treatment for certain business provisions. The OBBBA has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The Company has evaluated the provisions of the OBBBA and determined that the Act did not have a material impact on its consolidated financial statements or effective tax rate for the year ended December 31, 2025. As the Company maintains a full valuation allowance against its deferred tax assets, any adjustments to the gross value of these assets resulting from the enactment of the OBBBA were offset by a corresponding change in the valuation allowance, resulting in no net impact to the consolidated financial statements. The Company will continue to monitor the impact of the OBBBA as additional guidance is issued and further provisions become effective in future periods.