IronNet, Inc. Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Jan. 31, 2023

Schedule of Components of Provision for Income Taxes

The components of the provision for income taxes are comprised of the following for the fiscal years ended January 31:


	2023		2022
Current income taxes
Federal	$	-	$	-
State		10		1
Foreign		48		464
Deferred income taxes		—		—
Total income tax expense	$	58	$	465

Schedule of effective income tax rate reconciliation

A reconciliation of income tax expense at the U.S. federal statutory income tax rate to annual income tax expense at the Company’s effective tax rate is as follows:


	2023					2022
Income tax expense computed at U.S. federal statutory income tax rate	$	(23,217	)	21.0	%	$	(50,575	)	21.0	%
State income taxes		(8,434	)	7.63	%		(10,190	)	4.2	%
Permanent items		7,623		(6.90	)%		8,197		(3.4	)%
Valuation allowance		36,661		(33.16	)%		53,577		(22.2	)%
Change in State Tax Rate		(12,761	)	11.54	%		(362	)	0.2	%
Other		186		(0.17	)%		(182	)	0.1	%
Income tax expense computed at U.S. federal statutory income tax rate	$	58		(0.06	)%	$	465		(0.1	)%

Schedule of deferred tax assets (liabilities)

Significant components of the Company’s deferred tax assets and (liabilities) are as follows:


	2023			2022
Deferred tax assets
Net operating loss carryforward	$	118,465		$	81,955
Accruals and other		601			610
Intangibles		124			123
Depreciation and amortization		281			118
RSU		9,766			8,499
Others		657			285
Deferred revenue		4,241			5,786
Lease Liabilities		760			—
Gross deferred tax assets		134,895			97,376
Valuation allowance		(132,520	)		(95,533	)
Net deferred tax asset		2,375			1,843
Deferred tax liabilities
Deferred costs		(1,835	)		(1,843	)
ROU Assets		(540	)		—
Net deferred tax assets (liabilities)	$	-		$	-

Summary of Changes to Valuation and Qualifying Accounts

The following summarizes changes to valuation and qualifying accounts for fiscal year 2023 and fiscal year 2022:


Income Tax Valuation Allowance	Balance at Beginning of Period		Charged to Costs & Expenses		Federal/State NOL		Balance at End of Period
Fiscal Year Ended
January 31, 2023		95,533		476		36,510		132,520
January 31, 2022		41,849		10,662		43,022		95,533