v3.26.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Components of Provision for Income Taxes from Continuing Operations

The following table summarizes the significant components of the provision for income taxes from continuing operations (in thousands):

 

For the Year Ended December 31, 2025

 

 

For the Year Ended December 31, 2024

 

Federal:

 

 

 

 

 

 

Current

 

$

 

 

$

 

Deferred

 

 

(542

)

 

 

(2,126

)

State:

 

 

 

 

 

 

Current

 

 

18

 

 

 

2

 

Deferred

 

 

269

 

 

 

(255

)

Change in valuation allowance

 

 

273

 

 

 

2,381

 

Total income tax provision

 

$

18

 

 

$

2

 

Schedule of Income Tax Provision Computed at Federal Statutory Corporate Tax Rate

The income tax provision differs from that computed at the federal statutory corporate tax rate as follows (in thousands):

 

 

For the Year Ended
December 31, 2025

 

 

For the Year Ended
December 31, 2024

 

Expected provision at Federal statutory tax rate

 

 

21.00

%

 

 

21.00

%

State tax expense, net of Federal benefit

 

 

(10.90

)%

 

 

2.17

%

Change in valuation allowance

 

 

(10.48

)%

 

 

(20.80

)%

Permanent difference

 

 

(1.67

)%

 

 

(2.05

)%

Other

 

 

1.35

%

 

 

(0.34

)%

 

 

 

 

 

 

 

Total

 

 

(0.70

)%

 

 

(0.02

)%

 

The following table summarizes the Company's effective income tax rate reconciliation disaggregated into the categories below (in thousands):

 

Consolidated

 

US

Federal Statutory Rate

 

 

 

21%

Loss before income taxes

 

$(2,600)

 

$(2,600)

Tax Affected Categories:

 

 

 

 

Income Tax Benefit at federal statutory rate

 

(547)

 

(547)

Business Entertainment

 

57

 

57

Fines & Penalties

 

4

 

4

Stock Option - Windfall

 

(17)

 

(17)

State Tax Expense

 

284

 

284

Valuation Allowance

 

273

 

273

Deferred true up

 

(29)

 

(29)

Return to provision

 

(6)

 

(6)

Total provision

 

$18

 

$18

Schedule of Deferred Tax Assets and Liabilities

The following table summarizes the significant components of the Company’s deferred taxes (in thousands):

 

 

For the Year Ended
December 31, 2025

 

 

For the Year Ended
December 31, 2024

 

Deferred tax assets (liabilities):

 

 

 

 

 

 

Net operating loss

 

$

13,044

 

 

$

13,109

 

Share based compensation

 

 

430

 

 

 

248

 

Disallowed interest

 

 

5,328

 

 

 

3,770

 

Allowance for doubtful accounts

 

 

187

 

 

 

141

 

Lease accounting

 

 

1,482

 

 

 

138

 

Unrealized Loss

 

 

14

 

 

 

14

 

Depreciation

 

 

(4,292

)

 

 

(1,501

)

Total deferred tax assets (liabilities)

 

$

16,193

 

 

$

15,919

 

 

 

 

 

 

 

 

Less valuation allowance

 

 

(16,193

)

 

 

(15,919

)

 

 

 

 

 

 

 

Net deferred tax assets (liabilities)

 

$

 

 

$