Mobile Infrastructure Corp Income Taxes Disclosure

Note 13 — Income Taxes

 

We are taxed as a C corporation and are subject to federal income tax on our taxable income at regular corporate rates. A full valuation allowance for deferred tax assets was historically provided each year as it was more likely than not that we would not realize the benefits of our deferred tax assets.  As a taxable C Corporation, we have evaluated our deferred tax assets for the year ended December 31, 2025, which consist primarily of net operating losses and our investment in the Operating Partnership. Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three-year period ended  December 31, 2025. Such objective evidence limits the ability to consider other subjective evidence, such as our projections for future growth. We have continued to generate a net loss and as such we have determined that we will continue to record a full valuation allowance against our deferred tax assets for the year ended December 31, 2025. A change in circumstances  may cause us to change our judgment about whether deferred tax assets should be recorded, and further whether any such assets would more likely than not be realized. We would generally report any change in the valuation allowance through our Consolidated Statements of Operations in the period in which such changes in circumstances occur.

 

The provision for income taxes for the years ended  December 31, 2025 and 2024 consisted of the following (dollars in thousands):

 

		2025				2024
Current
Federal			—				—
State			—				57
Total Current		$	—			$	57
Deferred
Federal			—				—
State			—				—
Total Deferred			—				—
Total		$	—			$	57

 

The following table presents a reconciliation of the statutory corporate U.S. federal income tax rate to our effective tax rate as of December 31, 2025 and 2024 (dollars in thousands):

 

		2025								2024
Tax at U.S. statutory rate			21.00	%		$	(4,493	)			21.00	%		$	(1,284	)
Change in valuation allowance			(17.74	)%			3,794				(21.59	)%			1,320
Provision to return			(4.20	)%			898				—				—
Other			0.93	%			(199	)			0.59	%			(36	)
State taxes, net of federal effect (1)			—				—				—				—
Effective income tax			—				—				—				—

 

(1)	As the state tax liability is zero, there are no states over the 50% threshold.

 

The balances for deferred taxes for the years ended December 31, 2025 and 2024 consisted of the following (dollars in thousands):

 

		Year Ended December 31,
		2025				2024
Deferred Tax Assets:
NOL carryforward		$	22,618			$	19,958
Intangible assets			3,288				3,766
Investment in Operating Partnership			10,814				9,399
Gross deferred tax assets		$	36,720			$	33,123
Less valuation allowance			(36,720	)			(33,123	)
Total deferred tax assets		$	—			$	—
Deferred Tax Liabilities:
Total net deferred taxes		$	—			$	—

 

As of December 31, 2025 and 2024, we had federal and various state net operating loss (NOL) carryforwards of $97.8 million and $95.8 million, respectively. The federal net operating losses generated in 2018 and after of $87.2 million will carryforward indefinitely and be available to offset up to 80% of future taxable income each year. The federal net operating losses generated prior to 2018 of $8.6 million will begin to expire in 2036 unless previously utilized.

 

The One Big Beautiful Bill Act (“OBBBA”) was enacted on  July 4, 2025 and does not materially impact the Company’s effective tax rate or cash flows in the current fiscal year.