v3.26.1
Income Tax (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Provision for Continuing Operations
The following table summarizes the components of the provision for (benefit from) income tax (in thousands):
Year Ended December 31,
20252024
Current:
Federal$— $— 
State— — 
Total current taxes— — 
Deferred:
Federal2,711 2,313 
State612 358 
Total deferred taxes3,323 2,671 
Other:
Valuation allowance(7,497)(6,506)
Provision for (benefit from) income taxes$(4,174)$(3,835)
Reconciliation of Statutory Federal Income Tax Rate
The following table presents a reconciliation of the statutory federal income tax rate to the Company's effective income tax rate (in thousands):
Year Ended December 31,
20252024
$%$%
Statutory rate $2,704 21.00 %$2,252 21.00 %
State income taxes—net of federal benefit (1)
(770)(5.98)%(608)(5.67)%
Change in valuation allowance (6,117)(47.50)%(5,404)(50.39)%
Nontaxable or nondeductible items:
    Sec. 162(m) compensation disallowance167 1.30 %96 0.90 %
    Stock compensation(252)(1.96)%(131)(1.23)%
    Other94 0.73 %(40)(0.38)%
Effective tax rate$(4,174)(32.41)%$(3,835)(35.77)%
(1)
State taxes in Virginia made up the majority (greater than 50%) of the tax effect in this category.
Components of Deferred Tax Assets and Liabilities
The following table summarizes the components of the Company's deferred tax assets and liabilities (in thousands):
December 31,
20252024
Deferred tax assets:
Net operating loss and tax credit carryforwards$24,839 $28,589 
Stock-based compensation684 538 
Investments in affiliates990 1,420 
Right of use lease liability1,377 1,615 
Bonus accrual1,987 1,277 
Other 2 — 
Valuation allowance(9,649)(17,146)
Total deferred tax assets$20,230 $16,293 
Deferred tax liabilities:
Right of use lease asset$(1,288)$(1,523)
Depreciation and amortization(48)(50)
Total deferred tax liabilities$(1,336)$(1,573)
Net deferred income tax assets (liabilities)$18,894 $14,720 
Summary of Valuation Allowance
The following table summarizes changes in the Company's deferred tax valuation allowance balance (in thousands):
Year Ended December 31,
20252024
Valuation allowance - Beginning balance$(17,146)$(23,666)
Valuation allowance release7,497 6,506 
Adjustment from impact of blended tax rate— 14 
Valuation allowance - Ending balance$(9,649)$(17,146)