v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Income (Loss) from Continuing Operations before Provision for Income Taxes
The components of income from continuing operations before provision (benefit) for income taxes consisted of the following (in thousands):
Years Ended December 31,
202520242023
United States$6,396 $(14,396)$(39,708)
Foreign(3,376)1,368 (693)
$3,020 $(13,028)$(40,401)
Schedule of Provision (Benefit) for Income Taxes
The provision (benefit) for income taxes consisted of the following (in thousands):
Years Ended December 31,
202520242023
Federal:
Current$1,190 $138 $(220)
Deferred3,338 (84)(5,342)
4,528 54 (5,562)
State:
Current601 595 277 
Deferred(206)(1,331)(1,087)
395 (736)(810)
Foreign:
Current— — — 
Deferred6 16 6 
6 16 6 
$4,929 $(666)$(6,366)
Schedule of Significant Components of Deferred Tax Assets (Liabilities), Net
Significant components of the Company’s deferred tax assets, net consisted of the following (in thousands):
December 31,
20252024
Deferred Tax Assets:  
Accrued expenses and bonuses$4,670 $3,984 
Advances and loans and other reserves21,712 16,611 
Deferred compensation and commissions8,728 12,088 
Operating lease liabilities21,760 22,834 
Stock-based compensation7,125 7,682 
Net operating and capital loss carryforwards6,358 11,341 
Other comprehensive income— 306 
Amortizable intangibles and other4,569 4,526 
Other192 — 
Deferred tax assets before valuation allowance75,114 79,372 
Valuation allowance(5,813)(4,959)
Deferred Tax Assets69,301 74,413 
Deferred Tax Liabilities:  
Property and equipment(1,271)(2,744)
Operating lease ROU assets, net(18,346)(19,236)
Prepaid expenses(1,056)(895)
State taxes(1,562)(1,535)
Other comprehensive income(37)— 
Goodwill and other(2,443)(1,923)
Deferred Tax Liabilities(24,715)(26,333)
Deferred Tax Assets, Net$44,586 $48,080 
Schedule of Components of Provision for Income Taxes and Income before Provision for Income Taxes The following table is a reconciliation of the U.S. federal statutory tax rate of 21% to the Company's effective tax rate for the year ended December 31, 2025 in accordance with the guidance in ASU No. 2023-09 (in thousands).
Year Ended December 31,
2025
AmountRate
Income before provision for income taxes$3,020 100.0 %
Income taxes at the federal statutory rate634 21.0 %
State taxes, net of federal benefit(1)
312 10.3 %
Foreign tax effects:
Statutory rate difference between Canada and US(186)(6.2)%
Changes in valuation allowances854 28.3 %
Other46 1.5 %
Effect of cross-border tax laws(16)(0.5)%
Nontaxable/nondeductible items:
Travel and entertainment739 24.5 %
Officers' compensation2,053 68.0 %
Parking expense130 4.3 %
Life insurance investment income(298)(9.9)%
Dividend on unvested awards(209)(6.9)%
Stock based compensation745 24.7 %
Business gifts76 2.5 %
Other49 1.6 %
Provision for income taxes and effective income tax rate$4,929 163.2 %
(1)State taxes in California and Texas made up the majority of the tax effect in this category.
The following table is a reconciliation of the U.S federal statutory rate of 21% to the Company's effective rate for the years ended December 31, 2024 and 2023 in accordance with the guidance prior to the adoption of ASU 2023-09 (in thousands):
Years Ended December 31,
20242023
AmountRateAmountRate
Income tax (benefit) expense at the federal statutory rate$(2,736)21.0 %$(8,484)21.0 %
State income tax (benefit) expense, net of federal benefit(582)4.5 %(602)1.5 %
Shortfall (windfall) tax benefits, net related to stock-based compensation1,014 (7.8)%1,260 (3.1)%
Change in valuation allowance(337)2.6 %388 (0.9)%
Permanent and other items (1)
1,975 (15.2)%1,072 (2.7)%
(Benefit) provision for income taxes$(666)5.1 %$(6,366)15.8 %
(1)Permanent items relate principally to compensation charges (6.8% – 2024), meals and entertainment (5.5% – 2024), qualified transportation fringe benefits, and other items.