v3.26.1
Income Taxes
6 Months Ended
Jun. 30, 2026
Income Taxes  
Income Taxes

Note 11—Income Taxes

​

The TRS income/(loss) before provision for income taxes consisted of the following:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the three months ended

​

​

For the six months ended

($ in thousands)

​

June 30, 2026

​

June 30, 2025

​

​

June 30, 2026

​

June 30, 2025

United States

​

$

771

​

$

(463)

  ​ ​ ​

​

$

581

​

$

(1,444)

International

​

​

—

​

​

—

​

​

​

—

​

​

—

Total

​

$

771

​

$

(463)

​

​

$

581

​

$

(1,444)

​

The federal and state income tax provision (benefit) is summarized as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the three months ended

​

​

For the six months ended

($ in thousands)

​

June 30, 2026

​

June 30, 2025

​

​

June 30, 2026

​

June 30, 2025

Current:

​

​

​

​

​

​

  ​ ​ ​

​

​

​

​

​

​

Federal

​

$

24

​

$

—

​

​

$

32

​

$

—

State

​

​

—

​

​

—

​

​

​

—

​

​

—

Total Current Tax (Benefit) Expense

​

$

24

​

$

—

​

​

$

32

​

$

—

Deferred:

​

​

​

​

​

​

​

​

​

​

​

​

​

Federal

​

$

—

​

$

(8)

​

​

$

(1)

​

$

9

State

​

​

—

​

​

—

​

​

​

—

​

​

—

Total Deferred Tax Expense

​

$

—

​

$

(8)

​

​

$

(1)

​

$

9

Total Tax (Benefit) Expense

​

$

24

​

$

(8)

​

​

$

31

​

$

9

​

Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and (b) operating losses and tax credit carryforwards. The tax effects of significant items comprising the TRS’s deferred taxes as of June 30, 2026 and December 31, 2025 are as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

($ in thousands)

​

​

​

​

​

​

June 30, 2026

​

December 31, 2025

Deferred tax assets:

​

​

​

​

​

​

​

​

​

​

​

​

​

Net operating loss

​

​

​

​

​

​

​

​

$

1,758

​

$

2,057

CECL Adjustment

​

​

​

​

​

​

​

​

​

119

​

​

136

Total deferred tax assets

​

​

​

​

​

​

​

​

$

1,877

​

​

2,193

Deferred tax liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

​

Fixed assets

​

​

​

​

​

​

​

​

$

—

​

$

(10)

Installment Sale

​

​

​

​

​

​

​

​

​

(49)

​

​

(56)

Total deferred tax liabilities

​

​

​

​

​

​

​

​

$

(49)

​

$

(66)

Valuation Allowance

​

​

​

​

​

​

​

​

​

(1,828)

​

​

(2,128)

Net deferred taxes

​

​

​

​

​

​

​

​

$

—

​

$

(1)

​

ASC 740, Income Taxes, requires that the tax benefit of net operating losses, temporary differences and credit carryforwards be recorded as an asset to the extent that management assesses that realization is “more likely than not.” Realization of the future tax benefits is dependent on the TRS’s ability to generate sufficient taxable income within the carryforward period. Because of the TRS’s recent history of operating losses, and management’s inability to accurately project future taxable income, management believes that recognition of the deferred tax assets arising from the above-mentioned future tax benefits is currently not likely to be realized and, accordingly, has provided a valuation allowance. The valuation allowance decreased by $0.3 million during the six months ended June 30, 2026. The amount of the valuation allowance for deferred tax assets associated with excess tax deduction from stock-based incentive arrangements that is allocated to contributed capital if the future tax benefits are subsequently recognized is $0.0 million.

​

The TRS concluded that it cannot make a reasonable estimate of the annual effective tax rate, and therefore, the TRS used the year-to-date effective tax rate in determining the amount of income tax expense to recognize.

​

Net operating losses and tax credit carryforwards as of June 30, 2026 are as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

($ in thousands)

​

​

​

​

​

​

​

​

June 30, 2026

​

Expiration Year

Net operating losses, federal (Post-December 31, 2017)

​

​

​

​

​

​

​

​

$

7,588

​

​

Does not expire

Net operating losses, state

​

​

​

​

​

​

​

​

$

4,709

​

​

Various

​

The effective tax rate of the TRS’s provision (benefit) for income taxes differs from the federal statutory rate as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Tax (Benefit) Expense

​

​

Tax (Benefit) Expense

​

​

​

For the three months ended

​

​

For the six months ended June 30,

​

($ in thousands)

​

2026

  ​ ​ ​

2025

​

​

2026

  ​ ​ ​

2025

​

Statutory Rate

​

$

161

​

$

(97)

​

​

$

121

​

$

(303)

​

State Tax

​

​

—

​

​

(32)

​

​

​

—

​

​

(100)

​

Valuation Allowance

​

​

(137)

​

​

121

​

​

​

(90)

​

​

412

​

​

​

$

24

​

$

(8)

​

​

$

31

​

$

9

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Tax Rate

​

​

Tax Rate

​

​

​

For the three months ended

​

​

For the six months ended June 30,

​

​

​

2026

  ​ ​ ​

2025

​

​

2026

  ​ ​ ​

2025

​

Statutory Rate

​

​

21.00

%

​

21.00

%

​

​

21.00

%

​

21.00

%

State Tax

​

​

—

%

​

6.91

%

​

​

—

%

​

6.93

%

Valuation Allowance

​

​

(17.89)

%

​

(26.18)

%

​

​

(15.58)

%

​

(28.55)

%

​

​

​

3.11

%

​

1.73

%

​

​

5.42

%

​

(0.62)

%

​