Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Income Taxes [Abstract] | |
| Income Taxes | 14. Income Taxes
The Company’s provision for income taxes consists of federal and state taxes, as applicable, in amounts necessary to align the Company’s year-to-date tax provision with the effective rate that it expects to achieve for the full year. Each quarter the Company updates its estimate of the annual effective tax rate and records cumulative adjustments as necessary. As of June 30, 2026, the Company has concluded that its deferred tax assets are realizable on a more-likely-than-not basis with the exception of investments that are expected to generate capital losses when realized.
For the three and six months ended June 30, 2026, the Company recorded an income tax benefit of $146,000 and $1,041,000, respectively on pre-tax book loss of $472,000 and $3,339,000, respectively. The effective tax rate for the three and six months ended June 30, 2026 was 30.9% and 31.2% respectively. The effective tax rate differs from the federal statutory rate of 21% primarily related to certain permanent tax differences and state and local taxes.
For the three and six months ended June 30, 2025, the Company recorded an income tax benefit of $1,113,000 and an income tax provision of $722,000 on pre-tax book loss of $5,832,000 and pre-tax book income of $4,664,000, respectively. The effective tax rate for the three and six months ended June 30, 2025 was 19.1% and 15.5% respectively. The effective tax rate differs from the federal statutory rate of 21% primarily related to the Company’s ability to utilize certain deferred tax assets for capital loss carryforwards to offset expected capital gains on its Investment in Equity Security. These capital loss carryforwards were not previously realizable on a more-likely-than-not basis and the Company has reversed a portion of its valuation allowance resulting in an income tax benefit.
As of both June 30, 2026 and December 31, 2025, the Company recorded an uncertain tax position of $63,000 related to various tax matters, which is included in the line item “Taxes receivable” in the statements of financial condition. |