Black Rifle Coffee Company Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Components of the Provision for Income Taxes

The components of the provision for income tax (benefit) provision are as follows (dollars in thousands):


	Year Ended December 31,
	2025		2024		2023
Current expense
Federal	$	—	$	—	$	—
Foreign	—		—		—
State	132		172		185
Total current expense	132		172		185
Deferred expense
Federal	—		—		—
Foreign	—		—		—
State	—		—		—
Total deferred expense	—		—		—
Total income tax provision	$	132	$	172	$	185

Schedule of Reconciliation of the Federal Statutory Income Tax Rate to the Effective Tax Rate

Reconciliation of the U.S. federal statutory income tax rate to the Company’s effective tax rate is as follows (dollars in thousands):


	December 31,
	2025				2024				2023
	Amount		Rate		Amount		Rate		Amount		Rate
U.S. federal statutory tax rate	$	(6,741)	21.0	%	$	(1,570)	21.0	%	$	(11,872)	21.0	%
State and local income tax net of federal benefit[1]	132		(0.4)	%	172		(2.3)	%	185		(0.3)	%
Changes in valuation allowance	4,292		(13.4)	%	9,331		(124.8)	%	9,186		(16.2)	%
Non-taxable or non-deductible items
Investment in partnership	(3,603)		11.2	%	(8,896)		119.0	%	(5,427)		9.6	%
Other non-taxable adjustments	(248)		0.8	%	(11)		0.1	%	(3,679)		6.5	%
Other
Non-controlling interests	6,300		(19.6)	%	1,146		(15.3)	%	11,792		(20.9)	%
Other adjustments	—		—	%	—		—	%	—		—	%
Income tax expense	$	132	(0.4)	%	$	172	(2.3)	%	$	185	(0.3)	%

[1] State taxes in Texas made up the majority (greater than 50%) of the tax effect in this category.

Schedule of Components of Deferred Tax Assets / (Liabilities)

The tax effects of cumulative temporary differences that give rise to significant deferred tax assets and deferred tax liabilities are presented below (dollars in thousands):


	December 31,
	2025		2024		2023
Deferred tax assets:
Investment in partnership	$	86,128	$	88,506	$	83,483
Net operating losses	20,223		14,330		11,209
Disallowed interest expense	1,609		1,048		438
Other	441		—		—
Total deferred tax assets before valuation allowance	108,401		103,884		95,130
Less: valuation allowance	(108,401)		(103,884)		(95,130)
Deferred tax assets - net of valuation allowance	—		—		—

Deferred tax liabilities	—		—		—
Total deferred tax liabilities	—		—		—
Deferred tax (liabilities) assets, net	$	—	$	—	$	—

Schedule of Income Taxes Paid

During fiscal years 2025, 2024, and 2023 the Company paid cash taxes of $132, $425, and $562, respectively, to the state of Texas (dollars in thousands):


	Year Ended December 31,
	2025		2024		2023
Federal	$	—	$	—	$	—
State	132		425		562
Total cash paid for income taxes	$	132	$	425	$	562