Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense (Benefit) from Continuing Operations

The income tax expense (benefit) from continuing operations is comprised of the following (dollars in thousands):


		Year Ended December 31,
		2025				2024
Current state tax expense (benefit)		$	151			$	(1,844	)
Current federal tax expense (benefit)			(10	)			4
Deferred tax expense (benefit)			—				—
Total income tax expense (benefit)		$	141			$	(1,840	)

Summary of Income Tax Expense (Benefit) Reconciliation

The following is a reconciliation of the statutory federal income tax rate from continuing operations to the Company's effective tax rate from continuing operations for the tax years ended December 31, 2025 and 2024 (dollars in thousands):


		Year Ended December 31,
		2025								2024
Income (loss) before income taxes		$	(18,297	)						$	(36,080	)
Statutory U.S. federal income tax rate			(3,842	)			21.0	%			(7,577	)			21.0	%
State income taxes, net of federal benefit			(260	)			1.4	%			2,753				-7.6	%
Tax‑exempt investment income and dividend received deduction			(3	)			0.0	%			(9	)			0.0	%
Nondeductible meals and entertainment			5				0.0	%			43				-0.1	%
Change in valuation allowance on deferred tax assets			4,420				-24.2	%			2,708				-7.5	%
Other			(179	)			1.0	%			242				-0.7	%
Income tax expense (benefit)		$	141				-0.8	%		$	(1,840	)			5.1	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below (dollars in thousands):


		2025				2024
Deferred tax assets:
Discounted unpaid losses and loss adjustment expenses		$	1,487			$	1,774
Unearned premiums			596				1,079
Net operating loss carryforwards			16,794				13,647
Net unrealized losses on investments			1,756				2,603
State net operating loss carryforwards			4,213				3,890
Other			80				218
Gross deferred tax assets			24,926				23,211
Less valuation allowance			(22,905	)			(19,747	)
Total deferred tax assets, net of allowance			2,021				3,464
Deferred tax liabilities:
Investment basis difference			546				348
Tax rate change transition discounting			—				45
Deferred policy acquisition costs			135				909
Installment sale gain			1,061				1,816
Deferred intercompany gain			141				141
Intangible assets			115				115
Other			23				90
Total deferred tax liabilities			2,021				3,464
Net deferred tax liability		$	—			$	—

Summary of Income Taxes Paid

The following table presents the amount of income taxes paid by the Company for the years ended December 31, 2025 and 2024 (dollars in thousands):


		December 31,
		2025				2024
Income taxes paid:
State:
California		$	60			$	—
Texas			12
All Other States			71				1
Total State			143				1
Total federal			—				—
Total income taxes paid		$	143			$	1