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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes
14.
Income Taxes.

The Company is subject to income taxes in the U.S. federal jurisdiction and various states jurisdictions.

The income tax expense for the years ended December 31, 2024, 2023 and 2022 consists of (in thousands):

 

 

2024

 

 

2023

 

 

2022

 

Current - Federal

 

$

52,876

 

 

$

34,975

 

 

$

12,858

 

Current - State

 

 

8,951

 

 

 

5,931

 

 

 

3,877

 

Deferred - Federal

 

 

(8,442

)

 

 

(16,093

)

 

 

4,739

 

Deferred - State

 

 

(1,011

)

 

 

(1,712

)

 

 

166

 

 

$

52,374

 

 

$

23,101

 

 

$

21,640

 

 

The reconciliation of income tax expense computed at the statutory federal income tax rate of 21% to amounts included in the statements of operations is as follows:

 

 

2024

 

 

2023

 

 

2022

 

Statutory rate

 

 

21.0

%

 

 

21.0

%

 

 

21.0

%

State tax

 

 

2.8

%

 

 

3.1

%

 

 

3.1

%

Executive compensation limitation

 

 

4.1

%

 

 

2.6

%

 

 

3.6

%

Tax credit

 

 

(0.1

)%

 

 

—

 

 

 

(1.9

)%

Stock compensation windfall

 

 

(4.1

)%

 

 

(4.4

)%

 

 

(5.6

)%

Other

 

 

0.5

%

 

 

2.1

%

 

 

0.5

%

 

 

24.2

%

 

 

24.4

%

 

 

20.7

%

 

14.
Income Taxes (continued).

Deferred tax assets and liabilities reflect the net tax effects of net operating loss and tax credit carryovers and the temporary differences between the carrying amounts of assets and liabilities for financial reporting and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets/(liabilities) as of December 31, 2024 and 2023 are as follows (in thousands):

 

 

2024

 

 

2023

 

Deferred tax assets:

 

 

 

 

 

 

Deferred compensation

 

$

7,950

 

 

$

6,473

 

Inventory

 

 

561

 

 

 

448

 

Intangible assets

 

 

29,167

 

 

 

24,847

 

Accrued expenses

 

 

4,863

 

 

 

788

 

Operating lease liability

 

 

762

 

 

 

854

 

Capitalized research

 

 

5,755

 

 

 

4,927

 

Total deferred tax assets

 

 

49,058

 

 

 

38,337

 

Deferred tax liabilities:

 

 

 

 

 

 

Prepaid expenses

 

 

(1,096

)

 

 

(1,023

)

Right-of use asset

 

 

(668

)

 

 

(759

)

Other

 

 

(1,312

)

 

 

(11

)

Total deferred tax liabilities

 

 

(3,076

)

 

 

(1,793

)

Deferred tax assets, net

 

$

45,982

 

 

$

36,544

 

 

The Company has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets. As of December 31, 2024, the Company determined that there is sufficient positive evidence to conclude that it is more likely than not that the above deferred taxes of approximately $46 million are realizable.

The Company has received several orphan drug designations by the FDA for products currently under development. The orphan drug designations allow the Company to claim increased federal tax credits for certain research and development activities.

An immaterial amount of interest and penalties were accrued through December 31, 2024 and 2023. The Company’s policy is to recognize any related interest or penalties in income tax expense. The Company is not currently under income tax examinations by any tax authorities.