| 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) |
|