ADMA BIOLOGICS, INC.ADMA
ADMA BIOLOGICS, INC. Income Taxes Disclosure
11.
INCOME TAXES
Income (loss) before provision for income taxes was as follows:
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| (in thousands) | ||||||||||||
|
Domestic
|
$ | 182,656 | $ | 125,714 | $ | (28,239 | ) | |||||
|
Foreign
|
- | - | - | |||||||||
|
Income (loss) before income taxes
|
$ | 182,656 | $ | 125,714 | $ | (28,239 | ) | |||||
The components of the Company’s income tax expense (benefit) are as follows:
| Year Ended December 31, | |||||||||||||
| 2025 | 2024 | 2023 | |||||||||||
| (in thousands) | |||||||||||||
|
Current:
|
|||||||||||||
|
Federal
|
$ | 21,926 | $ | 10,434 | $ | - | |||||||
|
State
|
2,780 | 1,887 | - | ||||||||||
|
Total current
|
24,706 | 12,321 | - | ||||||||||
|
Deferred:
|
|||||||||||||
|
Federal
|
9,383 | (72,858 | ) | - | |||||||||
|
State
|
1,637 | (11,422 | ) | - | |||||||||
|
Total deferred
|
11,020 | (84,280 | ) | - | |||||||||
|
Total income tax expense (benefit)
|
$ | 35,726 | $ | (71,959 | ) | $ | - | ||||||
The following table is a reconciliation of the U.S. federal statutory rate to the Company’s effective rate for the year ended December 31, 2025 in accordance with the guidance in ASU No. 2023-09:
| Amount | Percent | |||||||
| (in thousands) | ||||||||
|
Tax expense at U.S. federal statutory rate
|
$ | 38,358 | 21.0 | % | ||||
|
State taxes, net of federal benefit
(1)
|
3,834 | 2.1 | % | |||||
|
Nontaxable or Nondeductible Items
|
||||||||
|
Nondeductible executive compensation
|
2,799 | 1.5 | % | |||||
|
Excess tax benefits related to stock-based compensation
|
(7,998 | ) | -4.3 | % | ||||
|
Tax credits
|
(1,883 | ) | -1.0 | % | ||||
|
Change in valuation allowance
|
- | 0.0 | % | |||||
|
Other Adjustments
|
||||||||
|
Other
|
616 | 0.3 | % | |||||
|
Income tax expense
|
$ | 35,726 | 19.6 | % | ||||
(1)
State taxes in Florida, Georgia, Illinois and North Carolina made up the majority (greater than 50%) of the tax effect in this category.
The following table is a reconciliation of the U.S. federal statutory rate to the Company’s effective rate for the years ended December 31, 2024 and 2023 in accordance with the guidance prior to the adoption of ASU 2023-09:
| Years Ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| (in thousands) | ||||||||
|
Tax expense (benefit) at U.S. federal statutory rate
|
$ | 26,400 | $ | (5,930 | ) | |||
|
State taxes, net of federal benefit
|
(9,931 | ) | (763 | ) | ||||
|
Non-deductible executive compensation
|
4,340 | 983 | ||||||
|
Excess tax benefits related to stock-based compensation
|
(5,661 | ) | - | |||||
|
Change in valuation allowance
|
(87,969 | ) | 4,696 | |||||
|
Other
|
862 | 1,014 | ||||||
|
Income tax benefit
|
$ | (71,959 | ) | $ | - | |||
The amounts of cash income taxes paid by the Company during the year ended December 31, 2025 were as follows:
| Amount | Percent | |||||||
| (in thousands) | ||||||||
|
Federal
|
$ | 17,590 | 89.4 | % | ||||
|
State and Local
|
2,093 | 10.6 | % | |||||
|
Total
|
$ | 19,683 | 100.0 | % | ||||
The significant components of the Company’s net deferred tax assets are as follows:
| Year Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
|
Deferred tax assets:
|
(in thousands) | |||||||
|
Federal and state net operating loss carryforwards
|
$ | 64,432 | $ | 65,615 | ||||
|
Interest expense limitation carryforwards
|
3,328 | 13,604 | ||||||
|
Inventory
|
3,978 | 3,911 | ||||||
|
Stock-based compensation
|
3,923 | 2,523 | ||||||
|
Lease obligations
|
2,392 | 2,549 | ||||||
|
Accrued expenses and other
|
4,316 | 5,779 | ||||||
|
Total deferred tax assets
|
82,369 | 93,981 | ||||||
|
Deferred tax liabilities:
|
||||||||
|
Depreciation of property and equipment
|
(6,270 | ) | (6,166 | ) | ||||
|
Right-of-use assets
|
(2,047 | ) | (2,247 | ) | ||||
|
Other deferred tax liabilities
|
(791 | ) | (1,288 | ) | ||||
|
Total deferred tax liabilities
|
(9,108 | ) | (9,701 | ) | ||||
|
Net deferred tax assets
|
$ | 73,261 | $ | 84,280 | ||||
As of December 31, 2025, the Company has federal and state (post-apportioned basis) net operating losses (“NOLs”) of $265.6 million and $176.9 million, respectively. Approximately $33.4 million and $46.8 million of the foregoing Federal and state NOLs, respectively, will expire at various dates beginning in , if not limited by triggering events prior to such time. Under the provisions of the Internal Revenue Code, changes in ownership of the Company, in certain circumstances, would limit the amount of federal NOLs that can be utilized annually in the future to offset taxable income. In particular, Section 382 of the Internal Revenue Code (“Section 382”) imposes limitations on an entity’s ability to use NOLs upon certain changes in ownership. If the Company is limited in its ability to use its NOLs in future years in which it has taxable income, then the Company will pay more taxes than if it were otherwise able to fully utilize its NOLs. The Company may experience ownership changes in the future as a result of shifts in ownership of the Company’s capital stock that the Company cannot predict or control that could result in further limitations being placed on the Company’s ability to utilize its Federal NOLs. The annual amount of Federal NOLs that expire each year is as follows (in thousands):
|
Expiration Date
|
Remaining Available
| |||
|
2031
|
$ | 2,409 | ||
|
2032
|
7,430 | |||
|
2033
|
11,295 | |||
|
2034
|
1,025 | |||
|
2035
|
1,025 | |||
|
2036
|
1,025 | |||
|
2037
|
9,157 | |||
|
Indefinite
|
232,240 | |||
|
Total
|
$ | 265,606 | ||
A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. When determining the amount of net deferred tax assets that are more likely than not to be realized, the Company assesses all available positive and negative evidence. This evidence includes, but is not limited to, prior earnings history, expected future earnings, carry-back and carry-forward periods and the feasibility of ongoing tax strategies that could potentially enhance the likelihood of the realization of a deferred tax asset. The weight given to the positive and negative evidence is commensurate with the extent the evidence may be objectively verified. As of December 31, 2025, the Company
believes it is more-likely-than-not that the Company's federal and state
deferred tax assets will be realized.
The
Company does not have any unrecognized tax benefits as of December 31, 2025 and
2024 and does not anticipate a significant change in unrecognized tax benefits
during the next 12 months. The Company files income tax returns in the U.S. federal and various state jurisdictions. 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’s income tax returns are open to examination for tax years 2007 through 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Mar 18, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 23, 2023 | |
| 2021 | Mar 24, 2022 | |
| 2020 | Mar 25, 2021 | |
| 2019 | Mar 13, 2020 | |
| 2018 | Mar 13, 2019 | |
| 2017 | Mar 29, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Mar 23, 2016 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.