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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Major Jurisdictions | The following are the major jurisdictions in which Octave and its subsidiaries, including its foreign subsidiaries, operate and the earliest tax years subject to examination:
Jurisdiction | Tax Year
United States | 2009
New York State | 2015
New York City | 2019
United Kingdom | 2021
Significant Portions of Deferred Tax Liabilities and Deferred Tax Assets | The tax effects of temporary differences that give rise to significant portions of the deferred tax liabilities and deferred tax assets at December 31, 2025 and 2024, are presented below:
December 31, | 2025 |  | 2024
Deferred tax liabilities: |  |  |
Amortizable intangible | $ | 69,929 |  |  | $ | 71,414 |
Deferred acquisition costs | 1,871 |  |  | 9,474 |
Investments | — |  |  | 3,568 |
Other | — |  |  | 787 |
Total deferred tax liabilities | 71,800 |  |  | 85,243 |
Deferred tax assets: |  |  |
Federal net operating loss carryforward | 356,575 |  |  | 349,931 |
Outside basis difference (1) | — |  |  | 17,044 |
Unearned premium reserves | 1,714 |  |  | 9,138 |
Loss reserves | 1,400 |  |  | 1,102 |
State capital loss carryforward | 12,813 |  |  | — |
State capital loss carryforward | 256,665 |  |  | 3,096 |
Compensation | 189 |  |  | 1,423 |
Investments | 1,721 |  |  | — |
Foreign net operating loss carryforward | 4,322 |  |  | — |
Other | 1,262 |  |  | 429 |
Subtotal deferred tax assets | 636,661 |  |  | 382,163 |
Valuation allowance (1) | 630,078 |  |  | 367,055 |
Total deferred tax assets | 6,583 |  |  | 15,108 |
Net deferred tax liability | $ | 65,217 |  |  | $ | 70,135 |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | U.S. and foreign components of pre-tax income (loss) from continuing operations were as follows:
Year Ended December 31, | 2025 |  | 2024 |  | 2023
U.S. | $ | (81,400) |  |  | $ | (58,014) |  |  | $ | (24,221) |
Foreign | (19,614) |  |  | (1,831) |  |  | — |
Total | $ | (101,014) |  |  | $ | (59,845) |  |  | $ | (24,221) |
Schedule of Components of Income Tax Expense (Benefit) | The components of the provision (benefit) for income taxes from continuing operations were as follows:
Year Ended December 31, | 2025 |  | 2024 |  | 2023
Current taxes |  |  |  |  |
U.S. state and local | $ | — |  |  | $ | 108 |  |  | $ | — |
Foreign | 5,103 |  |  | 2,090 |  |  | — |
Total current taxes | 5,103 |  |  | 2,198 |  |  | 431 |
Deferred taxes |  |  |  |  |
U.S. federal | (2,464) |  |  | (633) |  |  | (1,509) |
U.S. state and local | (37) |  |  | — |  |  | — |
Foreign | (7,813) |  |  | (2,489) |  |  | — |
Total deferred taxes | $ | (10,314) |  |  | $ | (3,122) |  |  | $ | (1,509) |
Provision for income taxes | $ | (5,211) |  |  | $ | (924) |  |  | $ | (989) |
Schedule Of Income Taxes Charged Credited Directly To Equity | The total effect of income taxes on net income and stockholders’ equity for the years ended December 31, 2025, 2024 and 2023 is as follows:
Year Ended December 31, | 2025 |  | 2024 |  | 2023
Total income taxes charged to net income | $ | (5,211) |  |  | $ | (924) |  |  | $ | (989) |
Income taxes charged (credited) to stockholders’ equity: |  |  |  |  |
Unrealized gains (losses) on investment securities, including foreign exchange | (867) |  |  | 144 |  |  | 918 |
Unrealized gains (losses) on foreign currency translations | 4,985 |  |  | (1,922) |  |  | — |
Valuation allowance to equity | 867 |  |  | 1,778 |  |  | (918) |
Total charged to stockholders’ equity: | 4,985 |  |  | — |  |  | — |
Total effect of income taxes | $ | (226) |  |  | $ | (924) |  |  | $ | (989) |
Schedule of Effective Income Tax Rate Reconciliation |
Year Ended December 31, | 2025 |  | 2024 |  | 2023
Total income taxes charged to net income | $ | (5,211) |  |  | $ | (924) |  |  | $ | (989) |
Income taxes charged (credited) to stockholders’ equity: |  |  |  |  |
Unrealized gains (losses) on investment securities, including foreign exchange | (867) |  |  | 144 |  |  | 918 |
Unrealized gains (losses) on foreign currency translations | 4,985 |  |  | (1,922) |  |  | — |
Valuation allowance to equity | 867 |  |  | 1,778 |  |  | (918) |
Total charged to stockholders’ equity: | 4,985 |  |  | — |  |  | — |
Total effect of income taxes | $ | (226) |  |  | $ | (924) |  |  | $ | (989) |
Reconciliation of U.S. Federal Statutory Income Tax Rate to Actual Income Tax Rate The tax provisions for continuing operations in the accompanying Consolidated Statements of Total Comprehensive Income (Loss) reflect effective tax rates differing from prevailing federal corporate income tax rates. As allowed by ASU 2023-09, Improvements to Income Tax Disclosures, Management has elected to apply the enhanced disclosure requirements of the ASU prospectively. This results in non-comparable rate reconciliation disclosures between the current and prior years. Below is a reconciliation of these differences for the year ended December 31, 2025, followed by a reconciliation of these differences for the years ended December 31, 2024 and 2023:
Year Ended December 31, | 2025 |  |  |  |
Tax on income from continuing operations at statutory rate | $ | (21,213) |  |  | 21.0 | % |  |  |  |  |  |  |  |
Changes in expected tax resulting from: |  |  |  |  |  |  |  |  |  |  |
Nondeductible executive compensation | 2,939 |  |  | (2.9) | % |  |  |  |  |  |  |  |
Other | (811) |  |  | 0.8 | % |  |  |  |  |  |  |  |
Cross-border tax laws | 1,286 |  |  | (1.3) | % |  |  |  |  |  |  |  |
Changes in valuation allowance | (31,790) |  |  | 31.5 | % |  |  |  |  |  |  |  |
Other |  |  |  |  |  |  |  |  |  |  |
Outside basis differences | 41,712 |  |  | (41.3) | % |  |  |  |  |  |  |  |
Adjust DTA related to intangibles | 1,497 |  |  | (1.5) | % |  |  |  |  |  |  |  |
Other | (440) |  |  | 0.4 | % |  |  |  |  |  |  |  |
Domestic state income taxes, net of federal | 261 |  |  | (0.3) | % |  |  |  |  |  |  |  |
Foreign jurisdictions |  |  |  |  |  |  |  |  |  |  |
United Kingdom |  |  |  |  |  |  |  |  |  |  |
Foreign tax effects | (1,228) |  |  | 1.2 | % |  |  |  |  |  |  |  |
Change in valuation allowance | 4,322 |  |  | (4.3) | % |  |  |  |  |  |  |  |
Other | (1,746) |  |  | 1.7 | % |  |  |  |  |  |  |  |
Tax expense on income from continuing operations | $ | (5,211) |  |  | 5.2 | % |  |  |  |  |  |  |  |
For the year ended December 31, 2025, activity in California, Florida, Illinois, New Jersey, New York state, New York City and New Jersey account for the majority of the amounts in the Domestic state income taxes, net of federal tax effect category.
Year Ended December 31, | 2024 |  | 2023
Tax on income/(loss) at statutory rate | $ | (12,567) |  |  | 21.0 | % |  | $ | (5,086) |  |  | 21.0 | %
State DTA tax rate change | 4,554 |  |  | (7.6) | % |  | — |  |  | — | %
Tax-exempt interest | (4) |  |  | — | % |  | (5) |  |  | — | %
Foreign taxes | 787 |  |  | (1.3) | % |  | — |  |  | — | %
State income taxes | 79 |  |  | (0.1) | % |  | 411 |  |  | (1.7) | %
Outside basis differences (1) | 21,076 |  |  | (35.2) | % |  | — |  |  | — | %
Acquisition costs | 2,017 |  |  | (3.4) | % |  | 1,497 |  |  | (6.2) | %
Changes in valuation allowance (1) | (17,044) |  |  | 28.5 | % |  | 1,602 |  |  | (6.6) | %
Other | 178 |  |  | (0.3) | % |  | 592 |  |  | (2.4) | %
Tax expense on income from continuing operations | $ | (924) |  |  | 1.5 | % |  | $ | (989) |  |  | 4.1 | %
(1)These amounts have been revised from the amounts previously disclosed to accurately reflect the outside basis difference in the subsidiary held for sale.
Schedule of Net Operating Loss And Tax Credit Carryovers | As of December 31, 2025, the Company has $1,690,842 of U.S. net operating loss carryforwards ("NOLs") that, if not utilized, will begin expiring in 2030. Of the total NOLs $118,910 carry forward indefinitely. The Company has state net operating loss carryforwards of $231,347 that begin expiring in 2042.
Schedule of Supplemental Cash Flow Information [Table Text Block] | Income taxes paid, net of refunds, exceeds 5% of total income taxes paid, net of refunds, in the following jurisdictions:
Year Ended December 31, |  |  | 2025 |  | 2024 |  | 2023
State |  |  |  |  |  |  |
Texas |  |  | $ | 24 |  |  | $ | 18 |  |  | $ | — |
Foreign |  |  |  |  |  |  |
United Kingdom |  |  | 5,528 |  |  | 508 |  |  | — |
Total |  |  | $ | 5,552 |  |  | $ | 526 |  |  | $ | — |

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