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

22. Income Taxes

Income before Income Tax Expense – Domestic and Foreign

The U.S. and foreign components of income before income tax expense for the years ended December 31, 2024, 2023 and 2022 are as follows:

   Year Ended December 31,
   2024  2023  2022
U.S.  $27,638   $4,652   $(4,067)
Foreign   67,764    114,356    44,017 
Total  $95,402   $119,008   $39,950 

Income Tax Expense/(Benefit) – By Jurisdiction

The components of current and deferred income tax expense included in the Consolidated Statement of Operations for years ended December 31, 2024, 2023 and 2022 are as follows:

   Years Ended December 31,
   2024  2023  2022
Current:         
Federal  $13,377   $6,957   $4,685 
State and local   3,547    1,883    1,415 
Foreign   12,183    8,103    (15,538)
   $29,107   $16,943   $(9,438)
Deferred:               
Federal  $(581)  $(494)  $(6)
State and local   (120)   (102)   (1)
Foreign   303    115    (1,289)
    (398)   (481)   (1,296)
Income tax expense/(benefit)  $28,709   $16,462   $(10,734)

Reconciliation of Statutory Federal Income Tax Rate to the Effective Income Tax Rate

Below is a tabular rate reconciliation pursuant to the disclosure requirements of ASU 2023-09 for the year ended December 31, 2024:

  

Year Ended

December 31, 2024

   Amount  Percent
U.S. federal statutory income tax  $20,034    21.0% 
State and local income taxes, net of federal benefit(1)   909    1.0% 
Foreign tax effects:          
Jersey, Channel Islands:          
Statutory tax rate difference   (3,456)   (3.6%)
United Kingdom:          
Statutory tax rate difference   1,822    1.9% 
Other   (96)   (0.1%)
Ireland:          
Statutory tax rate difference   (351)   (0.4%)
Other   75    0.1% 
Other Foreign Jurisdictions   226    0.2% 
Changes in valuation allowances   290    0.3% 
Non-taxable or non-deductible items          
Loss on debt extinguishment   6,219    6.5% 
Civil money penalty relating to SEC ESG Settlement   972    1.0% 
Executive compensation   901    1.0% 
Stock-based compensation tax shortfalls   409    0.4% 
Other adjustments   755    0.8% 
Income tax expense  $28,709    30.1% 
(1)State and local taxes in New York and California comprise the majority of this category.

Below is a reconciliation of the statutory federal income tax expense and the Company’s total income tax expense for the years ended December 31, 2023 and 2022:

   Years Ended December 31,
   2023  2022
U.S. federal statutory income tax  $24,992   $8,386 
Gain on revaluation/termination of deferred consideration(1)   (13,007)   (5,842)
Non-deductible loss on extinguishment of convertible notes   2,263    
—
 
Foreign operations   (1,868)   (2,919)
Non-deductible executive compensation   1,833    789 
Decrease in unrecognized tax benefits, net   (1,386)   (19,871)
Change in valuation allowance – Capital losses   1,340    4,761 
Expiration of capital losses   796    
—
 
Stock-based compensation tax shortfalls   373    507 
Change in tax-related indemnification assets, net   291    4,173 
Change in foreign net operating losses (“NOLs”)   174    
—
 
State income tax rate, net of federal benefit   153    (134)
Change in valuation allowance—Foreign NOLs and interest carryforwards   
—
    (1,609)
GILTI   
—
    499 
Other differences, net   508    526 
Income tax expense/(benefit)  $16,462   $(10,734)
(1)The gain on revaluation of deferred consideration is not adjusted for income taxes as the obligation was assumed by a wholly-owned subsidiary that is based in Jersey, a jurisdiction where the Company is subject to a zero percent tax rate.

Income Tax Payments

Disclosed below is a summary of income taxes paid by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the year ended December 31, 2024:

   Year Ended
December 31, 2024
United States - Federal  $16,139 
United States - State and local   4,005 
United Kingdom   11,485 
Other   589 
   $32,218 

 

Disclosed below is a summary of income taxes paid by jurisdiction for the years ended December 31, 2023 and 2022:

   Years Ended December 31,
   2023  2022
Federal  $4,824   $6,424 
State and local   1,457    1,431 
Foreign   9,875    4,645 
   $16,156   $12,500 

Deferred Tax Assets

A summary of the components of the Company’s deferred tax assets at December 31, 2024 and 2023 is as follows:

   2024  2023
Deferred tax assets:          
Capital losses  $21,984   $22,489 
Accrued expenses   6,465    6,000 
Stock-based compensation   2,843    2,468 
NOLs—Foreign   1,024    1,502 
Goodwill and intangible assets   705    895 
Foreign currency translation adjustment   427    146 
Software capitalization   199    
—
 
Operating lease liabilities   95    96 
NOLs—U.S.   
—
    127 
Unrealized losses   
—
    335 
Other   332    401 
Deferred tax assets   34,073    34,459 
           
Deferred tax liabilities:          
Fixed assets and prepaid assets   246    296 
Right of use assets—operating leases   95    96 
Unremitted earnings—European subsidiaries   92    186 
Unrealized gains   76    
—
 
Deferred tax liabilities   509    578 
Total deferred tax assets less deferred tax liabilities   33,564    33,881 
Less: Valuation allowance   (21,908)   (22,824)
Deferred tax assets, net  $11,656   $11,057 

Net Operating and Capital Losses – U.S.

The Company’s tax effected capital losses at December 31, 2024 were $21,984. These capital losses expire between the years 2025 and 2028. During the years ended December 31, 2024 and 2023, tax effected capital losses in the amount of $0 and $3,278 expired, respectively.

Net Operating Losses – Europe

One of the Company’s European subsidiaries generated NOLs outside the U.S. These tax effected NOLs, all of which are carried forward indefinitely, were $1,024 at December 31, 2024.

Valuation Allowance

The Company’s valuation allowance has been established on its net capital losses (net of unrealized gains), as it is more-likely-than-not that these deferred tax assets will not be realized.

Income Tax Examinations

The Company is subject to U.S. federal income tax as well as income tax of multiple state, local and certain foreign jurisdictions.

As of December 31, 2024, with few exceptions, the Company was no longer subject to income tax examinations by any taxing authority for the years before 2020.

Uncertain Tax Positions

During the year ended December 31, 2023, $1,353 of unrecognized tax benefits lapsed due to the statute of limitations. There were no unrecognized tax benefits at December 31, 2024 and 2023.

Undistributed Earnings of Foreign Subsidiaries

ASC 740-30 Income Taxes provides guidance that U.S. companies do not need to recognize tax effects on foreign earnings that are indefinitely reinvested. The Company repatriates earnings of its foreign subsidiaries and therefore has recognized a deferred tax liability of $92 and $186 at December 31, 2024 and 2023, respectively.