Blink Charging Co. Income Taxes Disclosure

12. INCOME TAXES

 

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases, and net operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted rates expected to be applicable to taxable income in the years those temporary differences are recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in income during the period that includes the enactment date. A valuation allowance is recorded by the Company when it is more likely than not that some portion or all of a deferred tax asset will not be realized.

 

On July 4, 2025, H.R.1 (the “Tax Reform Act of 2025”) was enacted in the U.S. The Tax Reform Act of 2025 includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act of 2017, modifications to the international tax framework, and the restoration of favorable tax treatment for certain business provisions. Important business provisions include, but are not limited to, reinstatement of permanent expensing of domestic research and development costs, higher EBITDA cap on the deduction for interest expense and 100% bonus depreciation. The provisions in the Tax Reform Act of 2025 have multiple effective dates, with certain provisions effective in 2025 and others implemented through future years. The Tax Reform Act of 2025 did not materially impact the Company’s effective tax rate for 2025. The Company continues to evaluate the future impact of these tax law changes on its financial statements.

 

The provision for income taxes for the years ended December 31, 2025, 2024, and 2023 consists of the following:

 SCHEDULE OF INCOME TAX PROVISION

		For the Years Ended December 31
		2025				2024				2023
Federal:
Current		$	-			$	-			$	-
Deferred			-				-				-
State:
Current			91				119				-
Deferred			-				-				-
Foreign:
Current			226				537				1,494
Deferred			-				-				-
Income tax provision		$	317			$	656			$	1,494

 

No federal or state current tax provision has been recorded for the years ended December 31, 2025, 2024, and 2023 because the Company had net operating losses for federal and state tax purposes. However, a foreign tax provision was recorded related to the Company’s operations in India. The net operating loss carryovers may be subject to annual limitations under Internal Revenue Code Section 382, and similar state provisions, should there be a greater than 50% ownership change as determined under the applicable income tax regulations. The amount of the limitation would be determined based on the value of the company immediately prior to the ownership change and subsequent ownership changes could further impact the amount of the annual limitation. An ownership change pursuant to Section 382 may have occurred in the past or could happen in the future, such that the NOLs available for utilization could be significantly limited. The Company will perform a Section 382 analysis in the future. The related decrease in the deferred tax asset will be offset by the decrease in valuation allowance.

 

 

BLINK CHARGING CO.

 

Notes to Consolidated Financial Statements

(dollars in thousands, except for share and per share amounts)

 

12. INCOME TAXES – CONTINUED

 

In accordance with ASU 2023-09, the following table summarizes differences between income tax expense (benefit) at the statutory federal income tax rate and as presented on the consolidated statements of operations during the year ended December 31, 2025.

 SUMMARY OF RECONCILIATION OF STATUTORY FEDERAL INCOME TAX RATE AND EFFECTIVE INCOME TAX RATE

Permanent differences:
		For the Year Ended December 31, 2025
Tax benefit at U.S. federal statutory rate		$	(17,248	)			21.0	%
State income taxes, net of federal benefit (1)			83				(0.1	)%
Nontaxable or non deductible items
Stock compensation			34				0.0	%
Loss on impairment of intangibles and goodwill			3,758				(4.6	)%
Other permanent differences			(1,928	)			2.3	%
Income from non-includable foreign entities			3,143				(3.8	)%
Foreign tax effects (2)
India foreign tax expense (2)			225				(0.3	)%
Tax credits			(30	)			0.0	%
Change in valuation allowance			12,280				(14.9	)%
Effective income tax rate		$	317				(0.4	)%

 

(1)

State taxes in California, Florida, and Maryland accumulated to over 50% of the tax effect in this category.

(2)

India is the only foreign jurisdiction which meets the 5% threshold.

 

The Company has determined that a valuation allowance for the entire net deferred tax asset is required. A valuation allowance is required if, based on the weight of evidence, it is more likely than not that some or the entire portion of the deferred tax asset will not be realized. After consideration of all the evidence, both positive and negative, management has determined that a full valuation allowance is necessary to reduce the deferred tax asset to zero, the amount that will more likely not be realized.

 

 

The disaggregation of the Company’s domestic and foreign pre-tax loss for the years ended December 31, 2025, 2024, and 2023, is as follows:

 SCHEDULE OF DISAGGREGATION OF DOMESTIC AND FOREIGN PRE-TAX LOSS

		2025				2024				2023
		For the Years Ended December 31
		2025				2024				2023
U.S.		$	(68,101	)		$	(180,327	)		$	(151,883	)
Foreign			(14,967	)			(20,335	)			(50,316	)
Total		$	(83,068	)		$	(200,662	)		$	(202,199	)

 

 

BLINK CHARGING CO.

 

Notes to Consolidated Financial Statements

(dollars in thousands, except for share and per share amounts)

 

12. INCOME TAXES – CONTINUED

 

A reconciliation of the income tax paid by jurisdiction is as follows:

 SCHEDULE OF INCOME TAXES RECONCILIATION JURISDICTION

		For the Year Ended December 31
		2025
Income Taxes paid (net of refunds)
U.S. federal		$	-
U.S. state and local
Maryland			37
Texas			31
Florida			25
Massachusetts			22
Georgia			18
Pennsylvania			18
Other			24
U.S. state and local			175
Foreign
India			163
Total		$	338

 

The tax effects of temporary differences that give rise to deferred tax assets and liabilities are presented below:

 SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES

		2025				2024
		December 31,
		2025				2024
Deferred Tax Assets:
Net Operating Loss Carryforwards - Federal		$	81,341			$	71,339
Net Operating Loss Carryforwards - States			13,679				12,191
Net Operating Loss Carryforwards - UK			8,497				6,560
Net Operating Loss Carryforwards - Belgium			12,149				10,523
Tax Credits			716				686
Stock-Based Compensation			1,135				713
Accruals			2,391				944
Deferred Revenue			2,002				2,299
Allowance for Doubtful Accounts			2,174				1,536
Capitalized Sec. 174 R&E			2,976				2,147
ROU Liability			1,401				1,944
Other			2,061				1,934
Deferred tax assets, gross			130,522				112,816
Deferred Tax Liabilities:
Intangible Assets			(1,742	)			(2,197	)
Depreciable Assets			(6,304	)			(3,613	)
Unrealized Gain/Loss			72				(175	)
ROU Asset			(1,100	)			(1,685	)
Other			(222	)			(531	)
Deferred tax liabilities, gross			(9,296	)			(8,201	)
Net Deferred Tax Assets			121,226				104,615
Valuation Allowance			(121,200	)			(104,589	)
Deferred Tax Assets, Net of Valuation Allowance			26				26
Change in Valuation Allowance		$	16,611			$	15,858

 

 

BLINK CHARGING CO.

 

Notes to Consolidated Financial Statements

(dollars in thousands, except for share and per share amounts)

 

12. INCOME TAXES – CONTINUED

 

The Company has determined that a valuation allowance for the entire net deferred tax asset is required. A valuation allowance is required if, based on the weight of evidence, it is more likely than not that some or the entire portion of the deferred tax asset will not be realized. After consideration of all the evidence, both positive and negative, management has determined that a full valuation allowance is necessary to reduce the deferred tax asset to the amount that will more likely than not be realized.

 

As of December 31, 2025, the Company had net operating loss carry forwards for federal income tax purposes of approximately $387,336, of which $86,636 expire at various dates between 2029 and 2037. The remaining $300,700 of net operating loss carry forwards incurred after 2017 do not have an expiration date.

 

In addition, state net operating loss carryforwards available are approximately $253,241 as of December 31, 2025. The state NOL carryforwards have expiration dates as follows:

 

SUMMARY OF NOL CARRYFORWARDS 

Expiration Date		State NOL
2031		$	265
2032			582
2033			1,219
2034			2,042
2035 and after			152,261
Indefinite			96,872
Total		$	253,241

 

As of December 31, 2025, the Company has foreign NOL carryforwards of approximately $44,724 in the United Kingdom and approximately $48,595 in Belgium, all of which are attributable to the Company’s foreign subsidiaries. These NOL carryforwards may be utilized to offset future taxable income in their respective jurisdictions, subject to applicable statutory limitations and regulations. The NOL carryforwards in both the United Kingdom and Belgium can be carried forward indefinitely.