Greenidge Generation Holdings Inc.GREE
Greenidge Generation Holdings Inc. Income Taxes Disclosure
INCOME TAXES
(a) State taxes in New York, South Carolina, and Mississippi make up the majority (greater than 50%) of the tax effect of this category.
The components of income (loss) before the benefit from income taxes are as follows:
| For the Year Ended December 31, | ||||||||||||||
| $ in thousands | 2025 | 2024 | ||||||||||||
| Domestic | $ | 4,807 | $ | (19,854) | ||||||||||
| Foreign | — | — | ||||||||||||
| Total | $ | 4,807 | $ | (19,854) | ||||||||||
The components of the benefit from income taxes consist of the following:
| For the Year Ended December 31, | ||||||||||||||
(in thousands) | 2025 | 2024 | ||||||||||||
| Current tax provision: | ||||||||||||||
| Federal | $ | — | $ | — | ||||||||||
| State | 60 | (69) | ||||||||||||
| Foreign | (539) | — | ||||||||||||
| Total current benefit | (479) | (69) | ||||||||||||
| Deferred tax provision: | ||||||||||||||
| Federal | — | — | ||||||||||||
| State | — | — | ||||||||||||
| Foreign | — | — | ||||||||||||
| Total deferred tax provision (benefit) | — | — | ||||||||||||
| Total benefit from income taxes | $ | (479) | $ | (69) | ||||||||||
A reconciliation of the benefit from income taxes to the amount computed by applying the U.S. federal income tax rate of 21% to income before taxes after the adoption of ASU 2023-09 is as follows:
| For the Year Ended December 31, | ||||||||||||||
(in thousands, except percentage data) | 2025 | |||||||||||||
| Provision at the Federal statutory rate | $ | 1,010 | 21.0 | % | ||||||||||
| State income taxes, net of federal tax benefits (a) | (250) | (5.2) | % | |||||||||||
| Foreign Tax Effects: | ||||||||||||||
| India | ||||||||||||||
| Amended Return Adjustment | (539) | (11.2) | % | |||||||||||
| Change in valuation allowance | (739) | (15.4) | % | |||||||||||
| Nontaxable or Nondeductible Items: | ||||||||||||||
| Share-Based Payment Awards | 36 | 0.7 | % | |||||||||||
| Other | 3 | 0.1 | % | |||||||||||
| Benefit from income taxes | $ | (479) | (10.0) | % | ||||||||||
A reconciliation of the benefit from income taxes to the amount computed by applying the U.S. federal income tax rate of 21% to income before taxes prior to the adoption of ASU 2023-09 is as follows:
For the Year Ended December 31, | |||||||||||
(in thousands, except percentage data) | 2024 | ||||||||||
| Benefit at the Federal statutory rate | $ | (4,170) | 21.0 | % | |||||||
| State income taxes, net of federal tax benefits | (301) | 1.5 | % | ||||||||
| Change in Valuation Allowance | 4,430 | (22.3) | % | ||||||||
| Other, net | (28) | 0.1 | % | ||||||||
| Benefit from income taxes | $ | (69) | 0.3 | % | |||||||
Components of income taxes paid (refund), net, are as follows:
| (in thousands) | For the Year Ended December 31, 2025 | ||||
| Federal | $ | — | |||
| State | 33 | ||||
| Total | $ | 33 | |||
| State: | |||||
| MS | $ | 100 | |||
| SC | (21) | ||||
| Other | (46) | ||||
The Company’s effective tax rate of (10.0)% for the year ended December 31, 2025 was lower than the U.S. federal statutory income tax rate of 21% primarily due to a change in the valuation allowance, foreign taxes as a result of an amended return and state taxes.
The Company’s effective tax rate of 0.35% for the year ended December 31, 2024 was lower than the U.S. federal statutory income tax rate 21% primarily due to a change in the valuation allowance and state taxes.
Deferred income taxes are provided for the tax effect of temporary differences between the financial reporting:
| As of December 31, | ||||||||||||||
| $ in thousands | 2025 | 2024 | ||||||||||||
| Deferred tax assets: | ||||||||||||||
| Net operating loss carryforwards | $ | 36,839 | $ | 38,263 | ||||||||||
| Intangibles | 630 | 656 | ||||||||||||
| Stock-based compensation | 534 | 765 | ||||||||||||
| Capitalized costs | 6,317 | 6,179 | ||||||||||||
| Interest Expense Limitation Carryforward | 8,397 | 8,024 | ||||||||||||
| Environmental liabilities | 4,751 | 4,184 | ||||||||||||
| Fixed Assets | 2,228 | 594 | ||||||||||||
| Other | 5,446 | 4,085 | ||||||||||||
| Gross deferred tax assets | 65,142 | 62,750 | ||||||||||||
| Less: valuation allowance | (64,898) | (62,285) | ||||||||||||
| Deferred tax assets, net | 244 | 465 | ||||||||||||
| Deferred tax liabilities: | ||||||||||||||
| Other | (244) | (465) | ||||||||||||
| Deferred tax liabilities | (244) | (465) | ||||||||||||
| Total net deferred tax assets (liabilities) | $ | — | $ | — | ||||||||||
As of December 31, 2025, the Company had net operating loss carryforwards (“NOL”) of approximately $152.9 million for U.S. federal income purposes, of which $15.9 million begins to expire in 2026. The Company also had net operating loss carryforwards for state income tax purposes of approximately $94.5 million, of which $1.0 million begins to expire in 2035. U.S. Federal NOLs incurred in or after 2018 have an indefinite carryforward period, which can be offset by 80% of future taxable income in any given year.
Of the total federal NOLs, $60.8 million were acquired with Support.com, Inc. in 2021 and are subject to Section 382 limitation. Utilization of the Company’s net operating loss and tax credit carryforwards can become subject to a substantial annual limitation due to the ownership change limitations provided by Section 382 and 383 of the Internal
Revenue Code and similar state provisions. Such an annual limitation could result in the expiration or elimination of the net operating loss and tax credit carryforwards before utilization. The Company has performed an analysis of its changes in ownership under Section 382 of the Internal Revenue Code. Management currently believes that the Section 382 limitation will limit utilization of certain acquired net operating loss and tax credit carryforwards of Support.com and may defer the realization of the tax benefit associated with the acquired tax attributes from Support.com. The Company has ended all Support.com operations as of December 31, 2023; however, we continue to retain the existing domestic tax positions of Support.com.
In assessing the need for a valuation allowance, the Company considered whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company evaluated its ability to realize the tax benefits associated with deferred tax assets by analyzing the relative impact of all the available positive and negative evidence regarding the Company’s forecasted taxable income, the reversal of existing deferred tax liabilities, taxable income in prior carry-back years (if permitted) and the availability of tax planning strategies. To the extent the Company does not consider it is more likely than not that a deferred tax asset will be recovered, valuation allowance is established. On the basis of this evaluation, as of December 31, 2025, the Company recorded a full valuation allowance on its net deferred tax, as it did not meet the more likely than not threshold required under ASC 740-10-30. The main form of negative evidence is the three-year cumulative losses. Although the Company currently has taxable income, this results from a nonrecurring sale, and it has a history of operating losses. Therefore, there is significant negative evidence, and a full valuation allowance has been recorded for the Company’s deferred tax assets.
The Company files U.S., state and foreign income tax returns in jurisdictions with varying statutes of limitations. The federal statute of limitation is three years and the state and foreign statutes of limitations are three to four years. Due to net operating loss carryforwards, the Company’s income tax returns remain open and subject to examination for tax years 2005 and thereafter by federal and state tax authorities. The 2022 through 2024 tax years generally remain open and subject to audit by foreign tax authorities.
The Company recognizes the tax benefit from uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the tax authorities, based on the technical merits of the position. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as part of the benefit from income taxes. As of December 31, 2025, the Company has not recorded any amounts for unrecognized tax benefits. The Company’s management does not expect that total amount of unrecognized tax benefits will materially change over the next 12 months.
As of December 31, 2025, the Company recorded an income tax receivable of $0.5 million, which is primarily as a result of filing amended tax returns in India for Support.com.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Apr 10, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Mar 31, 2022 | |
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.