v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 14—INCOME TAXES

The Company is subject to income taxes in the U.S. federal jurisdiction and various state and local jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply.

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

(Loss) income before income taxes:

 

 

 

 

 

 

 

 

 

Domestic

 

$

(2,444

)

 

$

12,177

 

 

$

18,366

 

Foreign

 

 

(43

)

 

 

—

 

 

 

—

 

 

$

(2,487

)

 

$

12,177

 

 

$

18,366

 

The following table details the components of the Company’s income tax provision for the years ended December 31, 2025, 2024 and 2023:

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Current expense:

 

 

 

 

 

 

 

 

 

Federal

 

$

—

 

 

$

1,041

 

 

$

1,006

 

State

 

 

44

 

 

 

597

 

 

 

536

 

 

$

44

 

 

$

1,638

 

 

$

1,542

 

 

 

 

 

 

 

 

 

 

 

Deferred (benefit) expense:

 

 

 

 

 

 

 

 

 

Federal

 

$

(4,348

)

 

$

635

 

 

$

1,869

 

State

 

 

69

 

 

 

170

 

 

 

7

 

 

$

(4,279

)

 

$

805

 

 

$

1,876

 

 

 

 

 

 

 

 

 

 

 

Income tax (benefit) expense

 

$

(4,235

)

 

$

2,443

 

 

$

3,418

 

 

The following table illustrates the deferred tax assets and liabilities as of December 31, 2025 and December 31, 2024:

 

 

December 31, 2025

 

 

December 31, 2024

 

Deferred tax assets:

 

 

 

 

 

 

Net operating loss carry forwards

 

$

4,147

 

 

$

4,100

 

Federal tax credits

 

 

17,339

 

 

 

12,274

 

Book reserves

 

 

2,107

 

 

 

1,824

 

Intangible asset amortization

 

 

4,693

 

 

 

5,297

 

Stock compensation

 

 

1,360

 

 

 

1,657

 

Impairment

 

 

990

 

 

 

387

 

Lease liabilities

 

 

2,075

 

 

 

2,815

 

VIE Loss on investment

 

 

565

 

 

 

565

 

Total deferred tax assets

 

 

33,276

 

 

 

28,919

 

Less: valuation analysis

 

 

(4,542

)

 

 

(4,542

)

Net deferred tax assets

 

$

28,734

 

 

$

24,377

 

 

 

 

 

 

 

 

Deferred tax liabilities:

 

 

 

 

 

 

Property depreciation

 

$

(21,130

)

 

$

(20,319

)

Right of use assets

 

 

(2,054

)

 

 

(2,786

)

Total deferred tax liabilities

 

 

(23,184

)

 

 

(23,105

)

Net deferred tax assets

 

 

5,550

 

 

 

1,272

 

 

As of December 31, 2025, the Company has $2,727 (tax affected) of federal net operating losses carryforwards that are not expected to be realizable due to restrictive loss limitation rules. As such a full valuation allowance has been recorded to offset the value of the related carryforward. As of December 31, 2025, the Company has $1,335 state net operating loss carryforwards. A partial valuation allowance has been recorded to recognize that some attributes may expire before utilization. Additionally, the Company has $17,339 of federal tax credit carryforwards that expire 20 years from the date earned. The credits available as of December 31, 2025 will begin to expire in 2039.

The following table details the components of the Company’s income tax provision for the years ended December 31, 2025, 2024 and 2023:

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 U.S. federal tax at statutory rate

 

$

(522

)

 

21

%

 

$

2,557

 

 

21

%

 

$

3,857

 

 

21

%

 State and local income taxes, net of federal income tax effect

 

 

104

 

 

-4

%

 

 

642

 

 

5

%

 

 

430

 

 

2

%

Tax credits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy-related tax credits

 

 

(4,822

)

 

194

%

 

 

(2,381

)

 

-20

%

 

 

(2,324

)

 

-13

%

Changes in valuation allowances

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

—

 

Nontaxable or nondeductible items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based payment awards

 

 

1,322

 

 

-53

%

 

 

1,298

 

 

11

%

 

 

(175

)

 

-1

%

Limitation on executive compensation

 

 

(343

)

 

14

%

 

 

184

 

 

2

%

 

 

1,530

 

 

8

%

Other

 

 

18

 

 

-1

%

 

 

143

 

 

1

%

 

 

114

 

 

1

%

Changes in unrecognized tax benefits

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

—

 

Other adjustments

 

 

8

 

 

—

 

 

 

—

 

 

—

 

 

 

(14

)

 

0

%

Total income tax (benefit) expense and effective rate

 

$

(4,235

)

 

170

%

 

$

2,443

 

 

20

%

 

$

3,418

 

 

19

%

 

State taxes in Pennsylvania and Texas comprise the majority of the state and local income taxes, net of federal effect category in all presented years.

 

As of December 31, 2025, the tax years 2022, 2023 and 2024 are open for examination by the IRS.

 

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Federal:

 

$

250

 

 

$

1,560

 

 

$

1,111

 

 

 

 

 

 

 

 

 

 

 

State:

 

 

 

 

 

 

 

 

 

California

 

 

114

 

 

 

78

 

 

 

20

 

Idaho

 

 

68

 

 

 

—

 

 

 

84

 

Pennsylvania

 

 

107

 

 

 

118

 

 

 

372

 

Texas

 

 

240

 

 

 

235

 

 

 

328

 

Other

 

 

4

 

 

 

2

 

 

 

—

 

Net cash paid for income taxes

 

$

783

 

 

$

1,993

 

 

$

1,915

 

Valuation Allowance

 

The Company annually reviews its deferred tax assets for the possibility they will not be realized. A valuation allowance will be recorded if it is determined more than a 50% likelihood exists that a deferred tax asset will not be realized. A $4,542 valuation allowance exists as of December 31, 2025 and 2024, which represents the Company’s deferred tax assets that are not expected to be realized. $565 of the valuation allowance represents MNK's investment deferred tax assets that the Company does not expect to realize. Refer to Note 17, Related Party Transactions for further information regarding the consolidation of MNK on December 31, 2024.

Uncertain Tax Position

The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in both federal and state jurisdictions. ASC 740 states that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, on the basis of each situation’s technical merits.

At this point in time the Company is not aware of any tax positions taken that would give rise to recording an uncertain tax position. As such, the Company has not recorded any liability for unrecognized tax benefits as of December 31, 2025 or 2024. The Company records interest and penalties as a component of income tax expense. However, as there are no unrecognized tax benefits for the years ended December 31, 2025 and December 31, 2024, the Company has no penalties or interest accrued at December 31, 2025 and 2024, respectively.