INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Reconciliation of U.S Federal Statutory Rate to Effective Income Tax Rate

The following table reconciles the U.S federal statutory rate to our effective income tax rate for the year ended December 31, 2025, as required by ASU 2023-09 (see “Recently Adopted Accounting Pronouncements” in Note 2 - Summary Of Significant Accounting Policies for more information):


	For the Year Ended December 31, 2025
	Amount		Percent

	(in thousands)
U.S. statutory federal tax benefit/(expense)	$	34,207	21.0	%
State and local income taxes, net of federal tax effect(1)	4,636		2.8	%
Change in valuation allowances	(21,953)		(13.5)	%
Nondeductible expenses
Executive compensation	(829)		(0.5)	%
Other nondeductible expenses	(1,091)		(0.7)	%
Changes in prior year unrecognized tax benefits	1,258		0.8	%
Other	(218)		(0.1)	%
Benefit from income taxes	$	16,010	9.8	%

(1) State and local income taxes in Georgia comprises the majority (greater than 50%) of the tax in this category.

The following table reconciles the U.S. federal statutory rate to our effective income tax rate for the years ended December 31, 2024, prior to the adoption of ASU 2023-09:


	For the Year Ended December 31,
	2024

	(in thousands)
Statutory federal tax expense	$	19,742
Effect of state taxes, net of federal benefit	6,849
Effect of state rate and tax law changes	419
Non-deductible officer’s compensation	(645)
Non-deductible employment agreement award	2,184
Change in valuation allowance	(32,369)
Internal revenue code (“IRC”) Section 382 adjustments	(762)
Net operating loss (“NOL”) expirations	(100)
Uncertain tax positions	(3,745)
Return to provision adjustments	(704)
Other	(628)
Provision for income taxes	$	(9,759)

Schedule of Income Taxes Paid (Net of Refunds Received)

The following table presents income taxes paid (net of refunds received) for the year ended December 31, 2025, as required by ASU 2023-09:


	For the Years Ended December 31,
	2025		2024

	(in thousands)
U.S Federal	$	—
U.S State and Local
Alabama	89
Colorado	(11)
Massachusetts	(39)
Michigan	(264)
New York	8
Pennsylvania	21
Utah	(6)
Texas	276
Other	8
Total cash paid for income taxes (net of refunds)	$	82
Total cash paid for income taxes (prior to ASU 2023-09)			$	2,471

Schedule of Components of Benefit From (Provision For) Income Taxes

The components of the benefit from (provision for) income taxes from continuing operations are as follows:


	For the Years Ended December 31,
	2025		2024

	(in thousands)
Federal:

Deferred	$	10,134	$	(5,244)
State:
Current	(1,580)		(1,391)
Deferred	7,456		(3,124)
Benefit from (Provision for) income taxes	$	16,010	$	(9,759)

Schedule of Components of Deferred Tax Assets and Liabilities

The significant components of the Company’s deferred tax assets and liabilities are as follows:


	As of December 31,
	2025		2024

	(in thousands)
Deferred tax assets:
Allowance for doubtful accounts	$	990	$	1,091
Accruals	2,073		2,908
Stock-based compensation	653		876
Deferred financing costs	16,686		—
Net operating loss carryforwards	27,859		45,017
Lease liabilities	9,460		7,699
Interest expense carryforward	25,694		28,672
Other assets	—		1,027
Total deferred tax assets	83,415		87,290
Valuation allowance for deferred tax assets	(55,755)		(33,842)
Total deferred tax asset, net of valuation allowance	$	27,660	$	53,448

Deferred tax liabilities:
Intangible assets	$	(28,810)	$	(73,004)
Fixed assets	(1,216)		(1,037)
Right of use assets	(8,517)		(7,518)
Partnership interests	(319)		(290)
Deferred financing costs	—		(451)
Other liabilities	(513)		(453)
Total deferred tax liabilities	(39,375)		(82,753)
Deferred tax liabilities, net	$	(11,715)	$	(29,305)

Schedule of Valuation Allowance

The changes in the Company’s valuation allowance are as follows:


	For the Years Ended December 31,
	2025		2024
	(in thousands)
Balance at Beginning of Period	$	33,842	$	1,473
Additions charged to income tax expense	23,101		32,369
Allowances taken or written off	(1,188)		—
Balance at End of Period	$	55,755	$	33,842

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


	For the Years Ended December 31,
	2025		2024

	(in thousands)
Balance as of January 1	$	4,889	$	575
Additions for tax positions related to prior years	—		4,367
Reduction for tax positions related to prior years	(1,376)		—
Deductions for tax positions as a result of the lapse of applicable statutes of limitation	(43)		(53)
Balance as of December 31	$	3,470	$	4,889