v3.26.3
Note 6 - Income Taxes
 12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

6.

Income Taxes

 

The Company has provided a full valuation allowance on the Company’s deferred tax assets because the Company believes it is more likely than not that its deferred tax assets will not be realized. The Company evaluates the recoverability of its deferred tax assets on a quarterly basis. There was no income tax expense (benefit) for the year ended December 31, 2025. In 2024, the Company had deferred income tax expense of $486 thousand. 

 

As part of the Pillarstone OP bankruptcy settlement, a $1 million “Partnership Tax Reserve” was established to satisfy state and federal tax obligations through the December 31, 2025 arising from the Company’s allocable share of Pillarstone OP’s taxable income.

 

A reconciliation of the expected statutory federal tax and the total income tax expense from continuing operations was as follows:

 

   

Year Ended December 31,

  
   

2025

    

2024

  
                                 

Federal statutory rate

   $ (89 )     21 %   $ 117       21 %

Effect of:

                                

Taxes of previously consolidated partnership paid from Partnership Tax Reserve

     456       (108 )%     -       0 %

Change in valuation allowance

     (367 )     87 %     464       83 %

Other, net

     -       - %     (95 )     (17 )%
                                 

Total income tax expense

   $ -       - %   $ 486       87 %

 

Deferred tax assets and liabilities consisted of the following (in thousands):

 

   

December 31,

 
   

2025

    

2024

  

Deferred tax assets and (liabilities):

                

Acquisition and organizational costs

   $ -     $ 36  

Net operating losses

     141       52  

Depreciation and amortization

     -       (96 )

Accruals and other

     (44 )     472  

Net deferred tax asset before valuation allowance

     97       464  

Valuation allowance

     (97 )     (464 )

Net deferred tax asset

   $ -     $ -