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Income Taxes | 12 Months Ended
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Dec. 31, 2024
Income Taxes [Abstract] |
Income Taxes | 14. Income Taxes Significant components of deferred tax assets and liabilities included in the consolidated balance sheets as of the periods below were as follows.
|  | As of the Year Ended |
|  | December 31, 2024 |  |  | December 31, 2023 |
|  | (In thousands) |
Deferred tax assets: |  |  |  |  |  |
Compensation |  | $ | 2,370 |  |  | $ | 1,680 |
Provision for credit losses |  |  | 747 |  |  |  | 574 |
Lease obligations - including closed clinics |  |  | 36,205 |  |  |  | 28,592 |
Deferred tax assets |  | $ | 39,322 |  |  | $ | 30,846 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Depreciation and amortization |  | $ | (32,392 | ) |  | $ | (27,290 | )
Operating lease right-of-use assets |  |  | (34,221 | ) |  |  | (26,427 | )
Gain on cash flow hedge |  |  | (960 | ) |  |  | (955 | )
Change in revaluation of put-right liability |  |  | (638 | ) |  |  | (586 | )
Other |  |  | (576 | ) |  |  | (403 | )
Deferred tax liabilities |  |  | (68,787 | ) |  |  | (55,661 | )
Net deferred tax liabilities |  | $ | (29,465 | ) |  | $ | (24,815 | )
The deferred tax assets and liabilities related to purchased interests not yet finalized may result in an adjustment. As of December 31, 2024, the Company has a federal tax payable of $4.5 million, which is included in accrued expenses in the accompanying balance sheet, and state tax receivables of $0.9 million, which is included in other current assets in the accompanying balance sheet. The differences between the federal tax rate and the Company’s effective tax rate for the years ended December 31, were as follows for the periods presented:
|  | For the Year Ended |
|  | December 31, 2024 |  |  | December 31, 2023 |  |  | December 31, 2022 |
|  | (In thousands) |
U.S. tax at statutory rate |  | $ | 9,667 |  |  |  | 21.0 | % |  | $ | 8,483 |  |  |  | 21.0 | % |  | $ | 9,307 |  |  |  | 21.0 | %
State income taxes, net of federal benefit |  |  | 2,945 |  |  |  | 6.4 | % |  |  | 2,135 |  |  |  | 5.3 | % |  |  | 2,079 |  |  |  | 4.7 | %
Shortfall (excess) equity compensation deduction |  |  | 75 |  |  |  | 0.2 | % |  |  | 123 |  |  |  | 0.3 | % |  |  | 149 |  |  |  | 0.3 | %
Non-deductible expenses |  |  | 907 |  |  |  | 2.0 | % |  |  | 710 |  |  |  | 1.8 | % |  |  | 629 |  |  |  | 1.4 | %
Return to provision adjustments |  |  | 1,015 |  |  |  | 2.1 | % |  |  | 705 |  |  |  | 1.7 | % |  |  | - |  |  |  | 0.0 | %
|  | $ | 14,609 |  |  |  | 31.7 | % |  | $ | 12,156 |  |  |  | 30.1 | % |  | $ | 12,164 |  |  |  | 27.4 | %
Significant components of the provision for income taxes were as follows for the periods presented.
|  | For the Year Ended |
|  | December 31, 2024 |  |  | December 31, 2023 |  |  | December 31, 2022 |
|  | (In thousands) |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 5,805 |  |  | $ | 6,996 |  |  | $ | (770 | )
State |  |  | 3,930 |  |  |  | 512 |  |  |  | 518 |
Total current |  |  | 9,735 |  |  |  | 7,508 |  |  |  | (252 | )
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 4,006 |  |  |  | 3,819 |  |  |  | 9,933 |
State |  |  | 868 |  |  |  | 829 |  |  |  | 2,483 |
Total deferred |  |  | 4,874 |  |  |  | 4,648 |  |  |  | 12,416 |
Total income tax provision |  | $ | 14,609 |  |  | $ | 12,156 |  |  | $ | 12,164 |
For 2024, 2023 and 2022, the Company performed a detailed reconciliation of its federal and state taxes payable and receivable accounts along with its federal and state deferred tax asset and liability accounts. The Company considers this reconciliation process to be an annual control. The Company is required to establish a valuation allowance for deferred tax assets if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income in the periods which the deferred tax assets are deductible, management believes that a valuation allowance is not required, as it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets. The Company’s U.S. federal returns remain open to examination for 2021 through 2023 and U.S. state jurisdictions are open for periods ranging from 2020 through 2023. The Company does not believe that it has any significant uncertain tax positions at December 31, 2024 and December 31, 2023, nor is this expected to change within the next twelve months due to the settlement and expiration of statutes of limitation. The Company did not have any accrued interest or penalties associated with any unrecognized tax benefits nor was any interest expense recognized during the years ended December 31, 2024, 2023 and 2022.

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