Income Taxes |
3 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Income Taxes | |
| Income Taxes | 12. Income Taxes Income before income taxes was $12,044,127 for the three months ended March 31, 2026 while the benefit for income taxes was $2,078,642. The effective tax rate was 16.4% for the three months ended March 31, 2026, which differed from the federal statutory rate of 21%, primarily due to establishing the net deferred tax assets upon our termination of our election to be taxed as a REIT. As a result of the Company’s termination of its election to be taxed as a REIT, the Company recognized net deferred tax assets and a corresponding income tax benefit of $3,902,878. The Company evaluated the realizability of the net deferred tax assets and determined that no valuation allowance was required as of March 31, 2026, because it is more likely than not that the net deferred tax assets will be realized from projected future taxable income and no material uncertain tax positions were identified that would necessitate a valuation allowance. During the three months ended March 31, 2026, the Company recognized current tax expense of $430,037 and deferred tax expense of $1,394,199. During the year ended December 31, 2025, the Company elected to be taxed as a REIT for federal income tax purposes and it did not generate any taxable income from its taxable REIT subsidiaries, accordingly no income tax expense was recorded. The Company has determined that it has no uncertain income tax positions that could have a material impact on the condensed consolidated financial statements. |