v3.22.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Before Income Taxes
The components of income before income taxes are as follows (in thousands):
Year Ended December 31,
20222021
Domestic$152,000 $4,030 
Foreign— — 
Income before income taxes$152,000 $4,030 
Schedule of Components of Income Tax Expense
The components of income tax expense are as follows (in thousands):
Year Ended December 31,
20222021
Current income taxes:
Federal$— $— 
State554 631 
Foreign— — 
Total current income taxes554 631 
Deferred income taxes:
Federal13,639 397 
State(5,233)(1,873)
Foreign— — 
Total deferred income taxes8,406 (1,476)
Other tax expense27 931 
Income tax expense$8,987 $86 
Schedule of U.S Federal Statutory Income Tax Rate and the Reported Income Tax (Benefit) Expense
The differences between income taxes expected at the U.S. federal statutory income tax rate and the reported income tax expense are summarized as follows (in thousands):
Year Ended December 31,
20222021
U.S. federal income taxes at statutory rate$31,920 $846 
State and local income tax net of federal benefit4,786 (1,380)
Permanent tax adjustments268 342 
Pre-IPO income— (562)
Non-controlling interest(3,289)(342)
Termination of TRA(15,905)349 
Remeasurement of deferred taxes(5,966)(1,939)
Research and development credit— (77)
Uncertain tax positions27 789 
Change in valuation allowance(1,983)1,983 
Other(871)77 
Income tax expense$8,987 $86 
Schedule of Deferred Tax Assets and Liabilities
The components of the deferred tax assets and liabilities are as follows (in thousands):
Year Ended December 31,
20222021
Investment in Shoals Parent$286,759 $161,078 
Tax receivable agreement— 13,014 
Net operating loss4,626 3,772 
Other249 1,077 
Total deferred income taxes291,634 178,941 
Valuation allowance— (1,983)
Net deferred tax asset$291,634 $176,958 
Schedule of Unrecognized Tax Benefits Reconciliation
The following table presents a reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties as follows (in thousands):
Year Ended December 31,
20222021
Beginning Balance$604 $— 
Gross increases - tax positions in prior period— 604 
Gross decreases - tax positions in prior period— — 
Gross increases - tax positions in current period— — 
Settlement— — 
Lapse of statute of limitations— — 
Ending balance$604 $604