Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
| Income Tax Disclosure [Abstract] |
|
| Schedule of Provision for Income Tax |
The provision for income tax for the years ended December 31, 2025 and 2024 are as follows:
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2025 |
|
|
Year Ended December 31, 2024 |
|
Current provision: |
|
|
|
|
|
|
Federal |
|
$ |
5,582 |
|
|
$ |
7,575 |
|
State |
|
|
537 |
|
|
|
4,560 |
|
Total current provision |
|
|
6,119 |
|
|
|
12,135 |
|
Deferred provision (benefit): |
|
|
|
|
|
|
Federal |
|
|
(11,121 |
) |
|
|
61,739 |
|
State |
|
|
(18,217 |
) |
|
|
30,409 |
|
Total deferred provision (benefit) |
|
|
(29,338 |
) |
|
|
92,148 |
|
Provision (benefit): |
|
|
|
|
|
|
Federal |
|
|
(5,539 |
) |
|
|
69,412 |
|
State |
|
|
(17,680 |
) |
|
|
34,969 |
|
Total (benefit from) provision for income taxes |
|
$ |
(23,219 |
) |
|
$ |
104,381 |
|
|
| Schedule of Income Tax Expense at Statutory Tax Rate |
Income tax expense at the statutory tax rate is reconciled to the overall income tax expense for the year ended December 31, 2025 is as follows:
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2025 |
|
|
|
% |
|
|
$ |
|
Federal income tax from continuing operations at statutory rates |
|
|
21.0 |
% |
|
$ |
(3,343 |
) |
State income taxes, net of federal tax effect |
|
|
103.7 |
% |
|
|
(16,506 |
) |
Non-deductible permanent items: |
|
|
|
|
|
|
Executive compensation |
|
|
(1.2 |
)% |
|
|
199 |
|
Other permanent differences |
|
|
0.7 |
% |
|
|
(109 |
) |
Other: |
|
|
|
|
|
|
Income passed through to non-controlling interests |
|
|
1.2 |
% |
|
|
(185 |
) |
Other |
|
|
20.6 |
% |
|
|
(3,275 |
) |
Provision for (benefit from) income taxes |
|
|
145.9 |
% |
|
$ |
(23,219 |
) |
Income tax expense at the statutory tax rate is reconciled to the overall income tax expense for the year ended December 31, 2024 is as follows:
|
|
|
|
|
|
|
Year Ended December 31, 2024 |
|
Federal income tax from continuing operations at statutory rates |
|
|
21.0 |
% |
Income prior to C-Corporation conversion |
|
|
(1.1 |
)% |
Income passed through to non-controlling interests |
|
|
(16.4 |
)% |
State income taxes, net of federal tax effect |
|
|
1.6 |
% |
Permanent differences |
|
|
0.0 |
% |
Conversion to C-Corporation status |
|
|
6.6 |
% |
Other |
|
|
(0.1 |
)% |
Provision for income taxes |
|
|
11.6 |
% |
|
| Schedule of Net Deferred Tax Assets and Liabilities |
The net deferred tax assets and liabilities as of December 31, 2025 and 2024 are comprised of the following:
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
December 31, 2024 |
|
Deferred tax assets: |
|
|
|
|
|
|
Net operating loss carryforwards |
|
$ |
4,412 |
|
|
$ |
3,827 |
|
Operating lease liabilities |
|
|
2,186 |
|
|
|
1,604 |
|
Other |
|
|
1,249 |
|
|
|
1,106 |
|
Total deferred tax assets |
|
|
7,847 |
|
|
|
6,537 |
|
|
|
|
|
|
|
|
Deferred tax liabilities: |
|
|
|
|
|
|
Digital assets |
|
|
3,315 |
|
|
|
3,493 |
|
Operating lease right-of-use assets |
|
|
1,453 |
|
|
|
1,219 |
|
Investments, at fair value |
|
|
12,538 |
|
|
|
20,607 |
|
Investments in proprietary funds |
|
|
45,323 |
|
|
|
63,812 |
|
Intangible assets and goodwill |
|
|
10,894 |
|
|
|
13,089 |
|
Other |
|
|
669 |
|
|
|
- |
|
Total deferred tax liabilities |
|
|
74,192 |
|
|
|
102,220 |
|
|
|
|
|
|
|
|
Deferred tax liability, net |
|
$ |
66,345 |
|
|
$ |
95,683 |
|
|
| Summary of Tax Carryforward Attributes |
The Company has the following tax carryforward attributes:
|
|
|
|
|
|
|
|
|
|
|
Gross Amount |
|
|
Expiring |
|
Federal net operating loss carryforwards |
|
$ |
16,650 |
|
|
$ |
- |
|
|
| Summary of Income Taxes Paid |
The following table presents income taxes paid by jurisdiction for the year ended December 31, 2025 and 2024, including U.S. Federal and state income taxes. The States presented make up the majority of the effects of state taxes included in the provision for income taxes.
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
December 31, 2024 |
|
Federal |
|
$ |
6,000 |
|
|
$ |
5,976 |
|
Wisconsin |
|
|
1,663 |
|
|
|
- |
|
New York State |
|
|
655 |
|
|
|
2,399 |
|
New York City |
|
|
575 |
|
|
|
2,285 |
|
New Jersey |
|
|
- |
|
|
|
417 |
|
All others |
|
|
348 |
|
|
|
10 |
|
|
|
$ |
9,241 |
|
|
$ |
11,087 |
|
|