Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Reconciliation of Federal Statutory Rate

For the year ended December 31, 2025, the Company elected to prospectively adopt ASU 2023-09. The following table is a reconciliation of the U.S. federal statutory rate of 21% on the income (loss) before income taxes to the Company’s effective income tax rate for the year ended December 31, 2025 in accordance with ASU 2023-09 (dollars in thousands):


	Year ended December 31, 2025
	$		%
US federal statutory income tax rate	$	(12,100)	21.0	%
Domestic federal
Nontaxable and nondeductible items
REIT and OP taxable income not subject to tax	10,692		(18.6)	%

Other	(179)		0.3	%
Changes in valuation allowances	1,874		(3.3)	%
Other	(126)		0.2	%
Domestic state and local income taxes, net of federal effect	163		(0.3)	%
Increase in state valuation allowance	(163)		0.3	%
Total	$	161	(0.3)	%

Schedule of Components of Income Tax Benefit (Expense)

Significant components of the provision (benefit) for income taxes are as follows (dollars in thousands):


	Year ended December 31,
	2025				2024				2023
	Current		Deferred		Current		Deferred		Current		Deferred
Federal benefit expense	$	—	$	1,874	$	—	$	1,936	$	—	$	1,023
State (expense) benefit	(162)		(163)		(262)		461		(303)		142
Deferred tax asset valuation allowance	—		(1,711)		—		(2,397)		—		(1,165)
Total income tax expense	$	(162)	$	—	$	(262)	$	—	$	(303)	$	—

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows (dollars in thousands):


	Year ended December 31,
	2025		2024		2023
Deferred tax assets:
Net operating loss carryforwards	$	11,930	$	10,078	$	7,555
Allowance for doubtful accounts	187		390		470
Deferred rent	297		330		229
Other	5		—		—
Total deferred tax assets	12,419		10,798		8,254
Less: Valuation allowance for deferred tax assets	(12,182)		(10,471)		(8,074)
Net deferred tax assets	237		327		180
Deferred tax liabilities:
Depreciation	(234)		(327)		(180)
Other	(3)		—		—
Total deferred tax liabilities	(237)		(327)		(180)
Net deferred tax assets (liabilities)	$	—	$	—	$	—

Schedule of Income Taxes Paid

Income taxes refunded (paid) for the year ended December 31, 2025 are as follows (dollars in thousands):


	Year ended December 31, 2025
Federal	$	—
State and local	10
Total income taxes refunded (paid)	$	10