XML 32 R18.htm IDEA: XBRL DOCUMENT v3.25.1
Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The following table summarizes our provision for income taxes for the presented:
Year Ended December 31,
 202420232022
Current income tax expense:  
Federal$(88)$— $— 
State(114)(35)(17)
Total current income tax expense(202)(35)(17)
Deferred income tax (expense) benefit:  
Federal(4,456)(1,940)(857)
State219 102 346 
Total deferred income tax (expense) benefit(4,237)(1,838)(511)
Provision for income taxes$(4,439)$(1,873)$(528)

The following table summarizes the effective tax rates for the periods presented:
Year Ended December 31,
 202420232022
Statutory rate$(4,550)21.0 %$(1,390)21.0 %$9 21.0 %
State and local taxes130 (0.6)%86 (1.3)%333 812.2 %
Stock-based compensation195 (0.9)%(46)0.7 %(24)(58.5)%
Nondeductible compensation(65)0.3 %(543)8.2 %(757)(1,846.3)%
Other(149)0.7 %20 (0.3)%(89)(217.1)%
Effective rate$(4,439)20.5 %$(1,873)28.3 %$(528)(1,288.7)%

We file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. With few exceptions, we are no longer subject to U.S. federal or state income tax examination by tax authorities for years before 2015.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted in response to the economic impact caused by the COVID-19 pandemic. The CARES Act, among other things, permits federal income tax net operating loss (“NOL”) carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid federal income taxes. We generated significant NOLs during 2018 and 2019 and filed carryback claims for these losses to the preceding five years.

In connection with the filing of these claims, we initially recorded a federal income tax receivable of approximately $15.0 million and an increase of approximately $10.1 million to our deferred tax liability as of March 31, 2020. During 2020, we received federal income tax refunds corresponding to the 2018 NOL carryback leaving approximately $11.3 million remaining to be refunded. In conjunction with the remaining $11.3 million income tax refund claim, we received a notice from the Internal Revenue Service (“IRS”) on March 8, 2023, stating that our income tax returns for 2015, 2016, 2017 and 2019 were selected for examination. Furthermore and as is customary for income tax refunds of this magnitude, the IRS is required to review the refund claim and provide a report to the Joint Committee on Taxation of the U.S. Congress (“JCT”).
The following table summarizes the income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and (liabilities) as of the periods presented:
December 31,
 20242023
Deferred income tax assets:  
Net operating loss carryforward$20,600 $22,190 
Research and development credits1,011 1,313 
Stock-based compensation269 153 
Interest expense2,756 991 
Inventory reserves1,293 893 
Deferred compensation827 792 
Other569 285 
Total deferred income tax assets27,325 26,617 
Deferred income tax liabilities:  
Property and equipment(73,198)(68,110)
Intangible assets— (143)
Total deferred income tax liabilities(73,198)(68,253)
Net deferred income tax liabilities$(45,873)$(41,636)
As of December 31, 2024, we had NOL carryforwards for federal income tax purposes of $89.5 million, which may be carried forward indefinitely and can offset up to 80% of future taxable income in any given year. Future changes in ownership, as defined by Section 382 of the Internal Revenue Code of 1986, as amended (“IRC”), could limit the amount of NOL carryforwards used in any one year. In general, under Section 382 and 383 of the IRC, a corporation that undergoes an “ownership change” is subject to limitations on its ability to utilize its pre-change NOLs and certain tax credits, to offset future taxable income and tax. In general, an ownership change occurs if the aggregate stock ownership of certain stockholders changes by more than 50 percentage points over such stockholders’ lowest percentage of ownership during the testing period (generally three years). We also had state NOL carryforwards of $46.6 million with carryforward periods similar to those of our federal NOLs.

We have no reserves for uncertain tax positions as of December 31, 2024 and 2023.