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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes
(15)
Income Taxes

Income tax benefit is as follows:

 

 

Year ended December 31,

 

 

2023

 

 

2024

 

Current:

 

 

 

 

 

 

Federal

 

$

1,498,219

 

 

$

6,205,464

 

State

 

 

132,848

 

 

 

914,465

 

 

 

1,631,067

 

 

 

7,119,929

 

Deferred:

 

 

 

 

 

 

Federal

 

 

(20,442,502

)

 

 

(6,646,568

)

State

 

 

(5,475,931

)

 

 

(1,818,322

)

 

 

(25,918,433

)

 

 

(8,464,890

)

 

$

(24,287,366

)

 

$

(1,344,961

)

 

Income tax benefit differs from the amounts that would result from applying the federal statutory rate of 21% to the Company’s loss before taxes as follows:

 

 

Year ended December 31,

 

 

2023

 

 

2024

 

Expected tax benefit

 

$

(20,844,385

)

 

$

(1,532,372

)

State income taxes, net of federal benefit

 

 

(4,320,644

)

 

 

(310,137

)

Tax rate adjustments

 

 

(112,968

)

 

 

(258,484

)

Change in valuation allowance

 

 

(3,742

)

 

 

(296,180

)

Non-deductible items

 

 

728,641

 

 

 

560,477

 

Other

 

 

265,732

 

 

 

491,735

 

 

$

(24,287,366

)

 

$

(1,344,961

)

 

 

Temporary differences that give rise to the components of deferred tax assets and liabilities are as follows:

 

 

December 31,

 

 

2023

 

 

2024

 

Deferred tax assets:

 

 

 

 

 

 

Allowance for credit losses

 

$

444,198

 

 

$

428,820

 

Other assets

 

 

1,515,891

 

 

 

2,316,033

 

Deferred interest

 

 

—

 

 

 

5,979,713

 

Operating lease liabilities

 

 

876,923

 

 

 

859,075

 

Other long-term liabilities

 

 

2,029,965

 

 

 

1,846,108

 

Stock-based compensation

 

 

116,052

 

 

 

100,499

 

Interest expense limitation

 

 

14,663,404

 

 

 

16,373,283

 

Net operating losses

 

 

1,100,232

 

 

 

253,754

 

Subtotal

 

 

20,746,665

 

 

 

28,157,285

 

Valuation allowance

 

 

(296,180

)

 

 

—

 

Total

 

 

20,450,485

 

 

 

28,157,285

 

Deferred tax liabilities:

 

 

 

 

 

 

Prepaid expenses

 

 

(167,592

)

 

 

(183,912

)

Property and equipment

 

 

(5,309,534

)

 

 

(4,320,397

)

Intangibles

 

 

(86,868,274

)

 

 

(87,400,913

)

Total

 

 

(92,345,400

)

 

 

(91,905,222

)

Net deferred tax liabilities

 

$

(71,894,915

)

 

$

(63,747,937

)

 

On October 8, 2024, the Company completed a debt modification (see Note 9) that resulted in a cancelation of indebtedness income for tax purposes in 2024, which is amortized over the life of the debt for book purposes, resulting in a new deferred tax asset. As of December 31, 2024, the Company has state net operating losses of $3.8 million. The valuation allowance as of December 31, 2023 related to unrealized losses on investments that were sold in 2024.

As of December 31, 2023 and 2024, the Company does not have any material unrecognized tax benefits and accordingly, has not recorded any interest or penalties related to unrecognized tax benefits. The Company and its subsidiaries file a consolidated federal income tax return and various state returns. These returns remain subject to examination by taxing authorities for all years after 2020.