Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Summary of The Expense (Benefit) For Income Taxes

The expense (benefit) for income taxes consists (in thousands):


	Year Ended December 31,
	2023		2024

Current:

Federal	$	—	$	2,970

State		—		885


Total current tax		—		3,855


Deferred:

Federal		—		533

State		—		168


Total deferred tax		—		701


Provision for income taxes	$	—	$	4,556

Summary of Reconciliation Between The Company's Income Tax Expense and Taxes

Reconciliation between the Company’s income tax expense and taxes computed at the federal statutory tax rate of 21.0% for calendar years ended December 31, 2024 and 2023 were as follows (in thousands):


	Year Ended December 31,
	2023		2024

Tax at federal statutory rate	$	—	$	(13,960	)

Partnership income (federal) not subject to tax to the Company		—		(8,307	)

State taxes (net of federal benefit)		—		828

Nondeductible Compensation		—		26,406

Other		—		(411	)


Provision for income taxes	$	—	$	4,556


Effective income tax rate				(6.85	)%

Summary of Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2024 and 2023 were as follows (in thousands):


	December 31,
	2023		2024

Deferred tax assets

Amortization	$	—	$	7,939

Lease and rents		—		7,382

Insurance and bad debt reserves		—		3,366

Accrued expenses		—		733

Other		—		341


Total deferred tax assets		—		19,761


Valuation allowance for deferred tax assets		—		—


Deferred tax assets, net of valuation allowance	$	—	$	19,761


Deferred tax liabilities

Lease and rents		—		(7,139	)

Depreciation		—		(6,609	)

Other		—		(741	)

Net deferred tax assets	$	—	$	5,272