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Income Taxes
 6 Months Ended
Jun. 30, 2025
Income Taxes [Abstract]  
Income Taxes

8. Income Taxes

 

The Company’s provision for income taxes consists of federal, foreign, and state taxes, as applicable, in amounts necessary to align the Company’s year-to-date tax provision with the effective rate that it expects to achieve for the full year. Each quarter the Company updates its estimate of the annual effective tax rate and records cumulative adjustments as necessary.

 

For the three and six months ended June 30, 2025, the Company recorded an income tax provision of $72,007, and an income tax benefit of $1,988,058, respectively which included a discrete tax benefit of $1,665,189 recorded during the three month period ended March 31, 2025 which primarily related to a partial reversal of its valuation allowance as the Acquisition created a source of future taxable income allowing for the recognition of certain deferred tax assets. The effective tax rate for the six months ended June 30, 2025 was 89.2% which differs from the statutory rate of 21% primarily related to a reduction in the Company’s valuation allowance. The Company continues to conclude that its U.S. deferred tax assets are not realizable on a more-likely-than-not basis and maintains a full valuation allowance against such deferred tax assets.

 

For the three and six months ended June 30, 2024, the Company recorded an income tax benefit of $66,208 and income tax provision of $532,502, respectively. The effective tax rate for the six months ended June 30, 2024 was (70.0)%, which differs from the statutory rate of 21% as a result in the changes in the U.S. valuation allowance and a mix of earnings between the United States and Canada. The Company concluded that its U.S. deferred tax assets are not realizable on a more-likely-than-not basis and maintains a full valuation allowance against such deferred tax assets.