Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of (Benefit) Provision for Income Taxes

The provision for income taxes consists of the following (in thousands):


	Years Ended December 31,
	2025		2024
Current:
Federal	$	—	$	—
State	330		239
Deferred:
Federal	—		—
Provision for income taxes	$	330	$	239

Schedule of Provision (Benefit) for Income Taxes by Statutory Income Tax Rate

Applying the updated requirements in ASU 2023-09 on a prospective basis, the principal reconciling items from the U.S. statutory income tax rate to the effective tax rate (provision for income taxes as a percentage of income before income taxes) are as follows (dollars in thousands):


	Year Ended December 31,
	2025
	$		%
Tax (benefit) provision at federal statutory rates	$	(15,155)	21.0	%
State income tax (benefit) provision, net of federal effects (1)	261		(0.4)	%
Nontaxable or nondeductible items:
Income attributable to noncontrolling interests	51		(0.1)	%

Stock based compensation expense	458		(0.6)	%
Permanent impact of employee retention credit claims	(1,185)		1.6	%


Other non-deductible items	(92)		0.1	%
Change in deferred tax asset valuation allowance	16,390		(22.7)	%
Other adjustments	$	(398)	0.6	%
Provision for income taxes	$	330	(0.5)	%

(1) Texas makes up over 50% of the state income tax in this category.

For the year ended December 31, 2024, prior to the adoption of ASU 2023-09, the principal reconciling items from the U.S. statutory income tax rate to the effective tax rate are as follows (in thousands):


	Year Ended December 31,
	2024
Tax (benefit) provision at federal statutory rates	$	(639)

Income attributable to noncontrolling interests	257
State income tax (benefit) provision, net of federal effects	475
Change in deferred tax asset valuation allowance	155
Stock based compensation expense	496
Permanent impact of employee retention credit claims	(585)
Other non-deductible items	80
Provision for income taxes	$	239

Summary of Deferred Tax Assets and Liabilities

A summary of the Company’s deferred tax assets and liabilities, are as follows (in thousands):


	December 31,
	2025		2024
Deferred tax assets:

Net operating loss carryforward	$	101,078	$	89,623
Compensation costs	3,368		4,148
Depreciation and amortization	12,031		3,271
Other	2,711		3,963
Total deferred tax assets	119,188		101,005
Deferred tax asset valuation allowance	(119,076)		(100,994)
Total deferred tax assets, net	112		11
Deferred tax liabilities:
Operating lease right-of-use assets	(112)		(11)

Total deferred tax liabilities	(112)		(11)
Deferred taxes, net	$	—	$	—

Schedule of Unrecognized Tax Benefits Activity and Related Information

A summary of the Company’s unrecognized tax benefits activity and related information for the years ended December 31, 2025 and 2024 is presented below (in thousands):


	Years Ended December 31,
	2025		2024
Beginning balance, January 1	$	3,602	$	3,193
Gross increases – tax positions in prior period	415		409


Ending balance, December 31	$	4,017	$	3,602