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INCOME TAXES
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The components of the loss before income taxes were as follows:
($ in millions)20252024
Domestic$(52.1)$(78.8)
Foreign— — 
   Loss before income taxes$(52.1)$(78.8)
The components of the income tax provision (benefit) were as follows:

($ in millions)20252024
Current
Federal$— $(0.1)
State0.3 0.3 
Total current income tax expense0.3 0.2 
Deferred
Federal— (0.2)
State— (0.2)
Total deferred income tax provision (benefit)— (0.4)
Income tax provision (benefit)$0.3 $(0.2)
A reconciliation of the statutory U.S. federal income tax rate of 21.0% to our effective income tax rate follows:
($ in millions)20252024
U.S. Federal statutory rate$(10.9)21.0%$(16.5)21.0%
State and local, net of federal benefit0.2 (0.4)%0.1(0.1)%
Tax credits (Work Opportunity Credit)(0.6)1.1%——%
Change in valuation allowance10.9 (20.9)%15.9(20.1)%
Nondeductible or nontaxable items0.4 (0.8)%0.1(0.1)%
Other reconciling items0.3 (0.6)%$0.2(0.3)%
Effective tax rate$0.3 (0.6)%$(0.2)0.4%

For both 2025 and 2024, the state and local effective tax rate was primarily driven by operations in Texas, which accounted for more than 50% of the total state and local tax impact.

The nature, effect, and underlying causes of the material items within the state and local category primarily relate to the apportionment of income based on the specific sales and payroll factors within the significant jurisdictions, as well as certain state-specific tax credits and incentives.
Deferred income taxes reflect the net tax effect of temporary differences between amounts recorded for financial reporting and amounts used for tax purposes. The major components of deferred tax assets and liabilities are as follows:

($ in millions)20252024
Deferred tax assets:
Net operating loss carryforward$33.0 $33.8 
Business interest carryforward37.8 31.5 
Lease liabilities47.4 47.4 
Goodwill and intangible assets46.3 46.9 
Accrued liabilities3.4 0.6 
Transaction costs1.0 1.1 
Tax credits0.6 — 
Stock-based compensation0.2 0.4 
Other1.2 — 
Total gross deferred tax assets170.9 161.7 
Valuation allowance(122.9)(113.0)
Deferred tax assets, net48.0 48.7 
Deferred tax liabilities:
ROU assets35.5 36.5 
Property and equipment12.1 12.2 
Debt issuance costs amortization0.2 — 
Other0.2 — 
Deferred tax liabilities48.0 48.7 
Net deferred tax asset (liability)$— $— 
The Company has evaluated the positive and negative evidence bearing upon its ability to realize the deferred tax assets. As of December 31, 2025 and 2024, management has evaluated the realizability of the Company’s deferred tax assets and recorded a valuation allowance against the Company’s federal and state deferred tax assets, as it is more likely than not that the deferred tax assets will not be realized based on the evidence evaluated.
($ in millions)20252024
Valuation allowance as of beginning of the year$113.0 $93.6 
Increases recorded to income tax provision9.9 19.4 
Valuation allowance as of end of year$122.9 $113.0 
As of December 31, 2025 and 2024, the Company has federal net operating loss carryforwards of $139.2 million and $140.2 million, all of which were generated in years beginning in 2018 and can be carried forward indefinitely. As of December 31, 2025 and 2024, the Company had state net operating loss carryforwards of $85.7 million and $100.2 million, respectively, a portion of which begin to expire in 2029. As a result of various ownership changes, the Company’s federal and state net operating losses are subject to limitations under Internal Revenue Code Section 382.
The components of income taxes paid (received) were as follows:
($ in millions)20252024
Federal$— $(0.3)
State0.4 (0.5)
Foreign— — 
Total income taxes paid (received)$0.4 $(0.8)
Income taxes paid (net of refunds) exceeded five percent of total income taxes paid (net of refunds) in the following jurisdictions:
($ in millions)20252024
State
Florida0.1 $(0.7)
Texas0.3 0.2 
We do not have unrecognized tax benefits related to uncertain tax positions. Tax years 2021 through 2024 remain open to examination by the U.S. federal and state taxing jurisdictions, as carryforward attributes generated in prior years may still be adjusted upon examination by the Internal Revenue Service or state tax authorities if they have been or will be used in a future period. The Company files income tax returns in the U.S. federal and various state jurisdictions. There are currently no federal or state audits in progress.