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Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Income Taxes | (15) Income Taxes Income tax benefit for the year ended December 31, 2025 is as follows:
Current: |  |  |
Federal |  | $ | — |
State |  |  | — |
Foreign |  |  | — |
|  |  | — |
Deferred: |  |  |
Federal |  |  | (34,589,736 | )
State |  |  | (8,428,170 | )
Foreign |  |  | — |
Benefits of operating loss carryforwards |  |  | (1,637,851 | )
|  |  | (44,655,757 | )
|  | $ | (44,655,757 | )
Income tax benefit for the year ended December 31, 2025 differs from the amounts that would result from applying the federal statutory rate of 21% to the Company’s pre-tax loss as follows:
|  |  |  |  | Percentage of |
|  | Amount |  |  | Pre-Tax Loss |
Expected tax benefit |  | $ | (50,656,689 | ) |  |  | 21 | %
State income taxes, net of federal benefit |  |  | (7,258,604 | ) |  |  | 3 | %
Change in valuation allowance |  |  | 12,576,428 |  |  |  | -5 | %
Non-deductible items |  |  | 323,188 |  |  |  | 0 | %
Other |  |  | 359,920 |  |  |  | 0 | %
|  | $ | (44,655,757 | ) |  |  | 19 | %
Income tax benefit for the year ended December 31, 2024 is as follows:
Current: |  |  |
Federal |  | $ | 6,205,464 |
State |  |  | 914,465 |
|  |  | 7,119,929 |
Deferred: |  |  |
Federal |  |  | (6,646,568 | )
State |  |  | (1,818,322 | )
|  |  | (8,464,890 | )
|  | $ | (1,344,961 | )
Income tax benefit for the year ended December 31, 2024 differs from the amounts that would result from applying the federal statutory rate of 21% to the Company’s loss before taxes as follows:
Expected tax benefit |  | $ | (1,532,372 | )
State income taxes, net of federal benefit |  |  | (310,137 | )
Tax rate adjustments |  |  | (258,484 | )
Change in valuation allowance |  |  | (296,180 | )
Non-deductible items |  |  | 560,477 |
Other |  |  | 491,735 |
|  | $ | (1,344,961 | )
Temporary differences that give rise to the components of deferred tax assets and liabilities are as follows:
|  | December 31, |
|  | 2024 |  |  | 2025 |
Deferred tax assets: |  |  |  |  |  |
Allowance for credit losses |  | $ | 428,820 |  |  | $ | 612,719 |
Other assets |  |  | 2,316,033 |  |  |  | 1,898,118 |
Deferred interest |  |  | 5,979,713 |  |  |  | 4,268,102 |
Operating lease liabilities |  |  | 10,123,133 |  |  |  | 8,695,410 |
Other long-term liabilities |  |  | 1,846,108 |  |  |  | 1,863,231 |
Stock-based compensation |  |  | 100,499 |  |  |  | 34,168 |
Interest expense limitation |  |  | 16,373,283 |  |  |  | 20,211,886 |
Net operating losses |  |  | 253,754 |  |  |  | 1,880,780 |
Subtotal |  |  | 37,421,343 |  |  |  | 39,464,414 |
Valuation allowance |  |  | — |  |  |  | (15,798,830 | )
Total |  |  | 37,421,343 |  |  |  | 23,665,584 |
Deferred tax liabilities: |  |  |  |  |  |
Prepaid expenses |  |  | (183,912 | ) |  |  | (195,288 | )
Property and equipment |  |  | (4,320,397 | ) |  |  | (4,046,450 | )
Operating lease right-of-use assets |  |  | (9,264,058 | ) |  |  | (7,905,364 | )
Intangibles |  |  | (87,400,913 | ) |  |  | (30,559,893 | )
Total |  |  | (101,169,280 | ) |  |  | (42,706,995 | )
Net deferred tax liabilities |  | $ | (63,747,937 | ) |  | $ | (19,041,411 | )
Income taxes paid for the year ended December 31, 2025 are as follows:
Federal taxes |  | $ | 2,539,925 |
State and local taxes: |  |  |
Florida |  |  | 235,000 |
Georgia |  |  | 6,826 |
Massachusetts |  |  | 680,200 |
Michigan |  |  | 160,000 |
New Jersey |  |  | 65,254 |
North Carolina |  |  | 49,500 |
Pennsylvania |  |  | 120,333 |
Other |  |  | 13,048 |
|  | $ | 3,870,086 |
As of December 31, 2025, the Company has federal net operating losses of $6.2 million. The federal net operating losses have an indefinite life. As of December 31, 2025, the Company has state net operating losses of $10.0 million. Massachusetts and Pennsylvania contributed approximately 66% of the state net operating losses. State net operating losses of approximately $8.2 million begin expiring in 2035. The majority of the remaining state net operating losses have an indefinite life. For the year ended December 31, 2025, the Company’s state and local income taxes, net of federal taxes, totaled a $6.4 million tax benefit. The Company identified the individual state and local jurisdictions that together comprise more than 50% of the total state and local income taxes, net of federal taxes. For 2025, state and local income taxes in Florida and Massachusetts comprised the majority of this category. During the year ended December 31, 2025, the Company evaluated the realizability of its deferred tax assets. As part of this evaluation, the Company considered all available positive and negative evidence, including recent operating results, projections of future taxable income, the scheduled reversal of existing temporary differences, and tax planning strategies. As a result of this assessment, the Company determined that it is more likely than not that a portion of its deferred tax assets will not be realized. Accordingly, the Company recorded a valuation allowance of $15.8 million against its deferred tax assets as of December 31, 2025. The primary factors contributing to the need for a valuation allowance were cumulative losses in recent years and the absence of sufficient projected future taxable income to utilize interest expense that was previously limited and not deducted. The Company will continue to assess the realizability of its deferred tax assets in future periods and will adjust the valuation allowance as appropriate based on changes in facts and circumstances. The effect of the valuation allowance is reflected in the Company’s effective tax rate reconciliation as a reconciling item, increasing the effective tax rate for the period. The Company only has operations in the United States, and therefore, no foreign income or foreign income taxes. 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 and 2025, the Company does no t have any material unrecognized tax benefits and accordingly, has no t 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 2021.

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