Resolute Holdings Management, Inc. Income Taxes Disclosure
4. INCOME TAXES
The Company recorded income tax expense (benefit) of $885 and $(24) for the years ended December 31, 2025, and December 31, 2024, respectively. Income (loss) before income taxes for the years ended December 31, 2025 and December 31, 2024 consisted of the following:
Year ended December 31, | ||||||
| 2025 | | 2024 | |||
Domestic income (loss) before income taxes | $ | 134,903 | $ | 110,122 | ||
The components of the provision for income taxes for the years ended December 31, 2025 and December 31, 2024 consisted of the following:
Year ended December 31, | ||||||
| 2025 | | 2024 | |||
Federal | $ | 706 | $ | — | ||
State | 335 | — | ||||
Total current | 1,041 | — | ||||
Federal | (108) | (14) | ||||
State | (48) | (10) | ||||
Total deferred | (156) | (24) | ||||
Total income tax expense (benefit) | $ | 885 | $ | (24) | ||
The Company’s effective tax rate was 0.7% and (0.0)% for the years ended December 31, 2025 and December 31, 2024, respectively. The Company’s effective income tax rate differs from the U.S. statutory rate primarily due to the non-controlling interest adjustment as the income attributable to the non-controlling interest in GPGI Holdings is pass-through income which flows through to its 100% owner GPGI. Additional reconciling differences include non-deductible equity based compensation from the GPGI Equity Plan, disallowed compensation expense related to excess officers’ compensation, and expenses allocated to Resolute Holdings for which the income tax deduction will ultimately be determined at GPGI.
A reconciliation of the Company’s statutory U.S. federal income tax rate to the effective income tax rate for the years ended December 31, 2025 and December 31, 2024 is as follows:
Year ended December 31, 2025 | Year ended December 31, 2024 | |||||||||||
U.S. federal statutory tax rate | $ | 28,330 | % | 21.00 | $ | 23,126 | % | 21.00 | ||||
State and local taxes, net of federal benefit | 253 | 0.19 | (8) | (0.01) | ||||||||
Non-taxable or non-deductible items | 1,603 | 1.19 | — | — | ||||||||
Income attributable to non-controlling interest | (29,388) | (21.78) | (23,621) | (21.44) | ||||||||
Other | 87 | 0.06 | 479 | 0.43 | ||||||||
Income tax expense (benefit) | $ | 885 | % | 0.66 | $ | (24) | % | (0.02) | ||||
The Company had net deferred tax assets of $180 and $24 as of December 31, 2025 and December 31, 2024, respectively. The Company will continue to assess and evaluate strategies that will enable the deferred tax asset, or portion thereof, to be utilized, and have not recorded a valuation allowance as the “more likely than not” criteria to utilize the deferred tax assets is expected to be satisfied. No valuation allowance was recorded for the years ended December 31, 2025 and December 31, 2024. As of December 31, 2025, the Company has no net operating losses available.
Year ended December 31, | ||||||
| 2025 | | 2024 | |||
Net operating losses | $ | — | $ | 24 | ||
Debt issuance costs | 19 | — | ||||
Formation costs | 73 | — | ||||
Equity based compensation - Resolute Equity Plan | 88 | — | ||||
Total deferred tax assets | 180 | 24 | ||||
Valuation allowance | — | — | ||||
Total deferred tax assets, net of allowance | $ | 180 | $ | 24 | ||
The Company paid $1,093 of income taxes during the year ended December 31, 2025 and $0 during the year ended December 31, 2024 as prior to the Inception Date the Company solely generated income from GPGI Holdings which is pass-through income that flows through to its 100% owner GPGI. Taxes paid for the years ended December 31, 2025 and Decembers, 31, 2024 consisted of the following:
Year ended December 31, | ||||||
| 2025 | | 2024 | |||
U.S. Federal | $ | 626 | $ | — | ||
U.S. State and Local | ||||||
New York | 86 | — | ||||
New York City | 86 | — | ||||
New Jersey | 295 | — | ||||
Total income taxes paid | $ | 1,093 | $ | — | ||
On July 4, 2025, the One, Big, Beautiful Bill Act (the “OBBB”) was signed into law. The OBBB includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act and the restoration of favorable tax treatment for certain business provisions. The OBBB did not have a material impact on the Company’s financial statements.
There were no uncertain tax positions taken, or expected to be taken in a tax return, that would be determined to be an unrecognized tax benefit on the Company’s consolidated financial statements for the years ended December 31, 2025 and December 31, 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 12, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
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.