Income Taxes

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Note 13. Income Taxes

Teknova’s benefit from income taxes consist of the following (in thousands):

	For the Year Ended December 31,
	2024			2023
Current:
Federal	$	—		$	—
State		4			6
Total current		4			6
Deferred:
Federal		(24	)		(25	)
State		(68	)		(279	)
Total deferred		(92	)		(304	)
Income tax benefit	$	(88	)	$	(298	)

A reconciliation of the statutory tax rate to the Company’s effective tax rate was as follows:

	For the Year Ended December 31,
	2024			2023
Statutory federal income tax rate %		21.0	%		21.0	%
State income tax rate		4.9			5.9
Stock compensation		(2.4	)		(0.5	)
Research and development credit		0.1			0.7
Change in valuation allowance		(21.5	)		(26.1	)
Other		(1.8	)		(0.2	)
Effective tax rate %		0.3	%		0.8	%

Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due, plus deferred taxes. Deferred taxes are recognized for differences between the basis of assets and liabilities for financial statement and income tax purposes. The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will be either deductible or taxable when the assets and

liabilities are recovered or settled. The Company’s component of net deferred tax liability and assets consist of the following (in thousands):

	As of December 31,
	2024			2023
Deferred tax asset
Net operating loss carryforwards	$	20,499		$	14,184
Accrued compensation		509			803
Stock compensation		1,762			1,823
Tax credit carryforwards		1,058			880
Accruals and other		635			131
Operating lease liabilities		4,382			4,599
Capitalized research and development expenses		2,288			2,304
Inventory capitalization		386			428
Total deferred tax asset		31,519			25,152
Deferred tax liability
Property, plant, and equipment		(2,410	)		(1,231	)
Intangibles		(3,280	)		(3,600	)
Operating right-of-use lease assets		(4,140	)		(4,402	)
Total deferred tax liability		(9,830	)		(9,233	)
Valuation allowance		(22,516	)		(16,838	)
Net deferred tax liability	$	(827	)	$	(919	)

As of the end of December 31, 2024, Teknova has federal and state net operating loss carryforwards (NOLs) of $75.3 million and $69.2 million, respectively. The federal NOLs will carryforward indefinitely but are subject to an 80% taxable income limitation. The state NOLs begin to expire in 2036. As of December 31, 2024, the Company had federal research and development tax credit carryforwards of $0.6 million, which will begin to expire in 2036 and a state research and development tax credit carryforward of $0.2 million and carry forward indefinitely. NOLs and tax credit carryforwards may become subject to an annual limitation in the event of certain cumulative changes in the ownership interest of significant stockholders, as defined under Sections 382 and 383 of the Internal Revenue Code of 1986, as amended, as well as similar state tax provisions. This could limit the amount of NOLs and tax credits that the Company can utilize annually to offset future taxable income or tax liabilities.

For the years ended December 31, 2024 and 2023, the Company recorded a net increase in valuation allowances of $5.7 million and $9.7 million, respectively, comprised primarily of an increase of valuation allowance on certain NOLs being carried forward which are not expected to be realizable. Valuation allowances are determined based on management’s assessment of its deferred tax assets that are more likely than not to be realized.

The Company had unrecognized tax benefits of $0.1 million and $0.1 million at December 31, 2024 and 2023, respectively. In connection with FASB’s Accounting for Uncertainty in Income Taxes, the Company recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. The Company does not expect to recognize any unrecognized tax benefits over the next twelve months. Consequently, the Company had not accrued interest or penalties related to uncertain tax positions as of the end of December 31, 2024 or 2023.

Teknova files income tax returns in the U.S. federal jurisdiction and various states. The Company is no longer subject to U.S. federal income tax examinations for tax years prior to 2021. The Company is no longer subject to state income tax examinations for tax years prior to 2020. All net operating losses and tax credits generated to date are subject to adjustment for U.S. federal and state income tax purposes. The Company is currently not under examination by the Internal Revenue Service or any other taxing authorities.