Ramaco Resources, Inc. Income Taxes Disclosure
NOTE 12—INCOME TAXES
Ramaco Resources, Inc. is organized as a corporation under the laws of Delaware. Ramaco Resources, Inc. files a consolidated U.S. federal tax return with its wholly owned subsidiaries. All our operations are wholly within the United States, but our products are sold to customers worldwide.
Income tax expense (benefit) consisted of the following:
Years ended December 31, | |||||||||
(In thousands) | | 2025 | | 2024 | | 2023 | |||
Federal | |||||||||
Current | $ | 992 | $ | 2,018 | $ | 2,817 | |||
Deferred | (12,221) |
| 1,746 |
| 17,323 | ||||
State | |||||||||
Current |
| 31 |
| 35 |
| 819 | |||
Deferred |
| 504 |
| (71) |
| 1,391 | |||
Total | $ | (10,694) | $ | 3,728 | $ | 22,350 | |||
The items accounting for differences between income taxes computed at the federal statutory rate and the provision recorded for income taxes were as follows:
Years ended December 31, | |||||||||||||||
(In thousands) | | 2025 | | 2024 | | 2023 | |||||||||
Income taxes computed at the federal statutory rate | $ | (13,049) | 21.0% | $ | 3,134 | 21.0% | $ | 21,938 | 21.0% | ||||||
$ | $ | $ | |||||||||||||
| (938) | 1.5% |
| 214 | 1.4% |
| 1,210 | 1.2% | |||||||
Effect of changes in tax laws or rates | 1,449 | (2.3%) | (166) | (1.1%) | 350 | 0.3% | |||||||||
Nontaxable or nondeductible items | |||||||||||||||
Percentage depletion |
| (1,600) | 2.6% |
| (2,410) | (16.1%) |
| (1,717) | (1.6%) | ||||||
162(m) compensation limitation | 2,126 | (3.4%) | 6,172 | 41.4% | 5,716 | 5.5% | |||||||||
Stock-based compensation |
| 504 | (0.8%) |
| (3,299) | (22.1%) |
| (3,395) | (3.3%) | ||||||
Other |
| 317 | (0.5%) |
| 397 | 2.7% |
| 210 | 0.2% | ||||||
Tax credits | 0.0% | (21) | (0.1%) | (170) | (0.2%) | ||||||||||
Effect of cross-border tax laws | |||||||||||||||
IRC 250 FDII | 0.0% | — | (1,475) | (1.4%) | |||||||||||
Other adjustments |
| 497 | (0.9%) |
| (293) | (2.0%) |
| (317) | (0.3%) | ||||||
$ | (10,694) | 17.2% | $ | 3,728 | 25.0% | $ | 22,350 | 21.4% | |||||||
(a) State taxes in West Virginia made up the majority of the tax effect in this category. | |||||||||||||||
There was a significant decrease in 2025 and 2024 compared to 2023 in the foreign-derived intangible income deduction related to our worldwide sales, which was primarily due to the decrease in taxable income and other limitations.
Deferred tax assets and liabilities were as follows:
December 31, | ||||||
(In thousands) | | 2025 | | 2024 | ||
Deferred tax assets: |
| |
| | ||
Loss carryforwards U.S. - Federal/States | $ | 6,693 | $ | 1,798 | ||
Asset retirement obligations |
| 8,041 |
| 6,879 | ||
Section 163(j) business interest limitation | — | 340 | ||||
Section 263A inventory capitalization | 1,928 | 1,156 | ||||
Accrued expenses |
| 3,750 |
| 2,144 | ||
Stock-based compensation |
| 4,685 |
| 3,294 | ||
Other | 134 | — | ||||
Total deferred tax assets |
| 25,231 |
| 15,611 | ||
Deferred tax liabilities: | ||||||
Depreciation & amortization |
| (69,540) |
| (71,638) | ||
Net deferred tax liabilities | $ | (44,309) | $ | (56,027) | ||
As of December 31, 2025, the Company’s federal and state net operating loss carryforward were approximately $20.5 million and $48.0 million, respectively. The majority of the Company’s net operating loss carryforwards are not subject to statutory expiration. State net operating losses of $2.0 million and $3.9 million expire in 2036 and 2046, respectively.
No valuation allowance was recognized by the Company for deferred tax assets as of December 31, 2025 or December 31, 2024.
We are subject to federal, state, and local income taxes in the United States. Significant judgment is required in evaluating tax positions taken and determining the provision for income taxes. As of December 31, 2025, we do not have any significant unrecognized tax benefits. The tax years 2022 through 2024 remain subject to examination by the taxing authorities. We are not currently under examination by any taxing authorities.
The Company made tax payments and received refunds as follows:
December 31, | |||||||||
(In thousands) | | 2025 | | 2024 | 2023 | ||||
U.S. Federal |
| $ | 2,240 | $ | 750 | $ | (10,935) | ||
State: | |||||||||
West Virginia |
| 1 |
| 381 |
| 250 | |||
Virginia | (285) | — | — | ||||||
Other |
| (67) |
| 39 |
| 121 | |||
Total state | (351) | 420 | 371 | ||||||
| |||||||||
Total cash paid for income taxes (net of refunds) | $ | 1,889 | $ | 1,170 | $ | (10,564) | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Mar 17, 2025 | |
| 2023 | Mar 14, 2024 | |
| 2022 | Mar 14, 2023 | |
| 2021 | Apr 1, 2022 | |
| 2020 | Feb 18, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Mar 19, 2019 | |
| 2017 | Mar 21, 2018 | |
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.