BlackSky Technology Inc. General form of registration statement for all companies including face-amount certificate companies

General form of registration statement for all companies including face-amount certificate companies

Income Tax (Tables)

Income Tax (Tables)

12 Months Ended

Dec. 31, 2020

Deferred tax assets and liabilities as of December 31, 2020 and 2019, consisted of the following:


	December 31,
	2020			2019
	(in thousands)
Deferred tax assets:
Net operating loss carryforwards	$	24,764		$	28,450
Sec. 163(j) carryforward		4,661			2,780
Accruals and reserves		2,155			6,592
Deferred revenue		539			147
Capital loss carryforward		3,368			—
Other deferred tax assets		1,284			1,101
Revenue reserve		—			1,061

Total deferred tax assets		36,771			40,131
Valuation allowance		(35,874	)		(38,873	)

Total net deferred tax assets	$	897		$	1,258

Deferred tax liabilities
Basis difference in intangibles		(895	)		(1,215	)
Other deferred tax liabilities		(2	)		(43	)

Total deferred tax liabilities		(897	)		(1,258	)

Net deferred tax liabilities	$	—		$	—

Schedule of Provision (Benefit) For Income Taxes

The Company’s provision for income taxes from continuing operations for the years ended December 31, 2020 and 2019 is as follows:


	Year Ended December 31,
	2020		2019
	(in thousands)
Current:
Federal	$	—	$	—
State		—		—

Total current		—		—

Deferred:	$	—	$	—
Federal		—		—
State		—		—

Total deferred	$	—	$	—

Total provision for income taxes	$	—	$	—

Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation

The provision (benefit) for income taxes differed from the amount computed by applying the federal statutory income tax rate of 21% to income (loss) before income taxes due to the following items for the years ended December 31, 2020 and 2019:


	Years Ended December 31,
	2020			2019
	(in thousands)
Tax benefit at federal statutory rate	$	(10,022	)	$	(12,572	)
Non-deductible compensation		449			777
State tax, net of federal benefit		(499	)		(345	)
Valuation allowance		9,666			11,674
Other		406			466

Income tax (benefit) expense	$	—		$	—

Summary of The Company's Estimated Loss and Tax Credit Carryforwards

Below is a summary of the Company’s estimated loss and tax credit carryforwards.


	Tax Effected		Expiration
	(in thousands)
Federal net operating loss (“NOL”) carryforward	$	24,621		2033-2060
Federal capital loss carryforward		3,368		2025
State NOL carryforwards		143		2037-2040

Summary of Unrecognized Tax Benefits

Below is a tabular reconciliation of the total amounts of unrecognized tax benefits:


	2020			2019
Unrecognized tax benefits—January 1	$	4,840		$	6,842
Gross decrease—tax positions in current period		(4,840	)		(2,002	)

Unrecognized tax benefits—December 31	$	—		$	4,840

Osprey Technology Acquisition Corp [Member]

Summary of Net Deferred Tax Assets

The Company’s net deferred tax assets are as follows:


	December 31,
	2020			2019
Deferred tax assets
Net operating loss carryforward	$	290,402		$	—
Unrealized (gain) loss on marketable securities		(7,818	)		1,361

Total deferred tax assets		282,584			1,361
Valuation Allowance		(282,584	)		—

Deferred tax assets, net valuation allowance	$	—		$	1,361

Schedule of Provision (Benefit) For Income Taxes

The income tax provision consists of the following:


	As of December 31,
	2020			2019
Federal
Current	$	—		$	94,636
Deferred		(281,223	)		(1,361	)
State and Local
Current		—			—
Deferred		—			—
Change in valuation allowance		282,584			—

Income tax provision	$	1,361		$	93,275

Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation

A reconciliation of the federal income tax rate to the Company’s effective tax rate is as follows:


	December 31, 2020			December 31, 2019
Statutory federal income tax rate		21.0	%		21.0	%
State taxes, net of federal tax benefit		0.0	%		0.0	%
Change in fair value of warrant liability		(19.2	)%		(20.7	)%
Transaction costs allocable to warrant liabilities		0.0	%		(1.7	)%
Valuation allowance		(1.9	)%		0.0	%

Income tax provision		(0.1	)%		(1.4	)%