| Schedule of components of income tax provision |
|
|
|
|
|
|
|
(In thousands) |
|
Year Ended December 31, |
|
|
2025 |
|
2024 |
Current Taxes |
|
|
|
|
|
|
Federal |
|
$ |
— |
|
$ |
— |
State |
|
|
— |
|
|
(41) |
Current tax provision |
|
|
— |
|
|
(41) |
Deferred Taxes |
|
|
|
|
|
|
Federal |
|
|
(7,891) |
|
|
(7,958) |
State |
|
|
(4,936) |
|
|
(3,447) |
Increase in valuation allowance |
|
|
13,357 |
|
|
11,667 |
Deferred tax provision |
|
|
530 |
|
|
262 |
Total tax provision |
|
$ |
530 |
|
$ |
221 |
|
| Schedule of effective income tax rate reconciliation |
|
|
|
|
|
|
|
(In thousands, except percentages) |
|
Year Ended December 31, 2025 |
|
|
Percent |
|
Amount |
Federal income tax benefit at U.S. statutory rate |
|
21.0 |
% |
|
$ |
(8,330) |
State income taxes, net of federal income tax effect(1) |
|
12.4 |
% |
|
|
(4,937) |
Tax credits |
|
0.4 |
% |
|
|
(162) |
Changes in valuation allowance |
|
(33.6) |
% |
|
|
13,357 |
Nontaxable or nondeductible items |
|
(0.7) |
% |
|
|
266 |
Other adjustments |
|
(0.8) |
% |
|
|
336 |
Effective tax rate |
|
(1.3) |
% |
|
$ |
530 |
__________
| (1) |
State taxes in Indiana and Illinois made up the majority (greater than 50 percent) of the tax effect in this category.
|
|
|
|
|
|
|
|
(In thousands, except percentages) |
|
Year Ended December 31, 2024 |
|
|
Percent |
|
Amount |
Federal income tax benefit at U.S. statutory rate |
|
21.0 |
% |
|
$ |
(8,495) |
State taxes, net of federal benefit |
|
8.6 |
% |
|
|
(3,488) |
Change in valuation allowance |
|
(28.8) |
% |
|
|
11,667 |
Permanent differences |
|
— |
% |
|
|
7 |
Credits |
|
0.4 |
% |
|
|
(162) |
Other |
|
(1.7) |
% |
|
|
692 |
Effective tax rate |
|
(0.5) |
% |
|
$ |
221 |
|
| Schedule of deferred tax assets and liabilities |
|
|
|
|
|
|
|
(In thousands) |
|
December 31, |
|
|
2025 |
|
2024 |
Deferred tax assets: |
|
|
|
|
|
|
Deferred compensation |
|
$ |
2,241 |
|
$ |
2,505 |
Depreciation of fixed assets |
|
|
675 |
|
|
— |
Intangible assets and amortization |
|
|
6,076 |
|
|
5,706 |
Net operating loss carry-forwards |
|
|
34,105 |
|
|
21,810 |
Accrued expenses |
|
|
1,381 |
|
|
1,255 |
Credits |
|
|
1,431 |
|
|
1,269 |
Loan Fees |
|
|
896 |
|
|
1,133 |
Interest limitation |
|
|
8,375 |
|
|
6,647 |
Lease liabilities |
|
|
15,181 |
|
|
14,675 |
Deferred revenues |
|
|
1,363 |
|
|
1,352 |
Other |
|
|
193 |
|
|
177 |
Gross deferred income tax assets |
|
|
71,917 |
|
|
56,529 |
Valuation allowance |
|
|
(48,992) |
|
|
(35,634) |
Deferred income tax assets, net of valuation allowance |
|
|
22,925 |
|
|
20,895 |
|
|
|
|
|
|
|
Deferred tax liabilities: |
|
|
|
|
|
|
Depreciation of fixed assets |
|
|
— |
|
|
(692) |
Amortization of indefinite-lived intangibles |
|
|
(8,741) |
|
|
(6,859) |
Right-of-use assets |
|
|
(14,821) |
|
|
(14,509) |
Other |
|
|
(1,839) |
|
|
(781) |
Gross deferred income tax liabilities |
|
|
(25,401) |
|
|
(22,841) |
Deferred income tax liabilities, net |
|
$ |
(2,476) |
|
$ |
(1,946) |
|