Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Summary of Domestic and International Components of Income (Loss) Before Income Taxes

The following table summarizes the domestic and international components of income (loss) before income taxes for the periods presented (in thousands):


	For the years ended December 31,
	2025			2024			2023
Domestic	$	697		$	(3,917	)	$	6,993
Foreign		(533	)		(486	)		2,058
Income (loss) before income taxes	$	164		$	(4,403	)	$	9,051

Summary of the Company's Income Tax Expense (Benefit)

The following is a summary of our income tax expense (benefit) for the periods presented (in thousands):


	For the year ended December 31, 2025
	Federal			State			Canadian			Total
Current	$	-		$	76		$	779		$	855
Deferred		361			-			685			1,046
Total	$	361		$	76		$	1,464		$	1,901


	For the year ended December 31, 2024
	Federal			State			Canadian			Total
Current	$	18		$	41		$	580		$	639
Deferred		258			4			583			845
Total	$	276		$	45		$	1,163		$	1,484


	For the year ended December 31, 2023
	Federal			State			Canadian			Total
Current	$	191		$	33		$	480		$	704
Deferred		(10	)		(2	)		(3,288	)		(3,300	)
Total	$	181		$	31		$	(2,808	)	$	(2,596	)

Smmary of Income Taxes Paid by Jurisdiction

The following is a summary of our income taxes paid by jurisdiction for the year ended December 31, 2025 (in thousands):


	Year Ended December 31, 2025
United States:
Federal tax payments	$	49
State and local		22
Canada:
Federal tax payments		226
Ontario provincial tax payments		173
Total taxes paid	$	470

Schedule of Income Tax Expense (Benefit) Reconciled to the Hypothetical Amounts Computed at the U.S. Federal Statutory Income Tax Rate

Income tax expense (benefit) is reconciled to the hypothetical amounts computed at the U.S. federal statutory income tax rate for the periods presented below (dollars in thousands):


	Year Ended December 31, 2025			Rate
Expected tax at statutory rate	$	35			21.0	%
Non-taxable REIT loss		474			285.5	%
State and local income tax expense, net of federal benefit		60			36.1	%
Canadian tax effects:
Federal statutory tax rate difference		18			10.9	%
Ontario provincial income tax		13			7.8	%
Other Canadian provincial income tax		1			0.6	%
Change in valuation allowance:
Canadian federal		744			448.2	%
Ontario provincial		502			302.4	%
Other Canadian provincial		65			39.2	%
Other		(11	)		-6.6	%
Total income tax expense	$	1,901			1145.1	%

	Year Ended December 31, 2024			Rate
Expected benefit at statutory rate	$	(925	)		21.0	%
Non-taxable REIT loss		1,134			-25.7	%
State and local income tax expense, net of federal benefit		36			-0.8	%
Foreign income taxed at different rates		(12	)		0.3	%
Change in valuation allowance		1,223			-27.8	%
Other		28			-0.7	%
Total income tax expense	$	1,484			-33.7	%


	Year Ended December 31, 2023			Rate
Expected tax at statutory rate	$	1,901			21.0	%
Non-taxable REIT income		(1,243	)		-13.7	%
State and local income tax expense, net of federal benefit		25			0.3	%
Foreign income taxed at different rates		131			1.5	%
Change in valuation allowance		(3,410	)		-37.7	%
Total income tax benefit	$	(2,596	)		-28.7	%

Schedule of Deferred Tax Assets and Liabilities

The major sources of temporary differences that give rise to the deferred tax effects are shown below (in thousands):


	December 31, 2025			December 31, 2024
Deferred tax liabilities:
Intangible contract assets	$	(1,181	)	$	(6	)
Canadian real estate		(9,538	)		(9,163	)
Total deferred tax liability		(10,719	)		(9,169	)

Deferred tax assets:
Other		1,951			1,687
Canadian real estate and non-capital losses (1)		8,580			7,729
Total deferred tax assets		10,531			9,416

Valuation allowance		(3,189	)		(1,891	)

Net deferred tax liabilities	$	(3,377	)	$	(1,644	)

(1)

Such amount includes deferred tax assets from Canadian real estate basis differences, Canadian non-capital loss carryforwards, and Canadian non-deductible interest expense carry-forwards, which represented approximately $1.4 million, $5.2 million, and $2.0 million as of December 31, 2025, respectively, and approximately $1.1 million, $5.5 million, and $1.1 million as of December 31, 2024, respectively.