Local Bounti Corporation 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 Components of Income Tax Expense (Benefit)

The provision for income taxes consists of the following:


	Year Ended December 31,
	2025		2024
	(in thousands)
Currently reportable expense
Federal	$	—	$	—
State	—		—
	—		—
Deferred benefit:
Federal	(22,039)		22,737
State	(9,911)		8,356
	(31,950)		31,093
Less: Valuation allowance	31,950		(31,093)
Total provision for income tax expense	$	—	$	—

Schedule of Effective Income Tax Rate Reconciliation

The following table presents the reconciliation of the U.S. federal statutory income tax rate to the Company’s effective tax rate (in thousands):


	Year Ended December 31, 2025
	Amount	%
Tax at federal statutory rate	(19,820)	21.0%
State and local income taxes, net of federal benefit	—	—%
Tax credits:
Research tax credit	(41)	—%
Changes in valuation allowances	(24,120)	25.6%
Non-taxable or non-deductible items:
Stock compensation	1,034	(1.1)%
Executive compensation limitation	583	(0.6)%
Other	975	(1.0)%
Cancellation of debt income	41,389	(43.9)%
Effective tax rate	—	—	%

For the year ended December 31, 2024, prior to the adoption of ASU 2023-09, the following table presents the reconciliation of the U.S. federal statutory income tax rate to the Company’s effective tax rate:



	2024
Federal statutory income tax rate	21.0%
State tax	5.5%
Stock-based compensation	0.1%
Non-deductible expenses	(0.8)%
Research and development credit	—%
Change in valuation allowance	(25.8)%
Effective tax rate	—	%

Schedule of Deferred Tax Assets and Liabilities

The components of the Company's deferred tax assets and liabilities are as follows:


	December 31,
	(in thousands)
	2025		2024
Gross deferred tax assets arising from:
Net operating loss carryforwards	$	49,281	$	81,865
ASC 842 lease liability	4,539		3,838
Acquired intangibles	10,566		10,672
Accruals and reserves	10,667		11,688
Capitalized research expenditures	10,533		7,592
Research and development credit carryforward	310		269
Gross deferred tax assets	85,896		115,924
Less: Valuation allowance	(65,196)		(97,220)
Deferred tax assets, net of valuation allowance	20,700		18,704
Deferred tax liabilities arising from:

ASC 842 right-of-use asset	(2,700)		(2,924)
Fixed assets and land	(18,000)		(15,780)
Gross deferred tax liabilities	(20,700)		(18,704)
Net deferred tax liabilities	$	—	$	—