Note 14 - Income Taxes

6 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE 14 INCOME TAXES

Income tax expense for the three and six months ended June 30, 2024 and June 30, 2023 varies from the amount that would result by applying the applicable U.S. federal corporate income tax rate of 21% to (loss) income from continuing operations before income tax expense. The following table summarizes the differences:

(in thousands)	Three months ended June 30,						Six months ended June 30,
	2024			2023			2024			2023
Income tax (benefit) expense at U. S. statutory income tax rate	$	(473	)	$	(338	)	$	(899	)	$	5,643
Valuation allowance		553			240			1,092			(5,664	)
Compensation		42			37			(78	)		66
Investment income		(23	)		65			(38	)		83
State income tax		81			121			172			610
Indefinite life intangibles		(86	)		59			(134	)		139
Contingent consideration		—			14			57			14
Other		10			15			16			21
Income tax expense	$	104		$	213		$	188		$	912

The Company maintains a valuation allowance for its gross deferred tax assets at June 30, 2024 and December 31, 2023. The Company's operations have generated substantial operating losses in prior years. These losses can be available to reduce income taxes that might otherwise be incurred on future taxable income; however, it is uncertain whether the Company will generate the taxable income necessary to utilize these losses or other reversing temporary differences. This uncertainty has caused management to place a full valuation allowance on its June 30, 2024 and December 31, 2023 net deferred tax asset, excluding the deferred income tax liability amounts set forth in the paragraph below which were determined to not reverse and offset existing deferred tax assets.  

The Company carries net deferred income tax liabilities of $4.8 million and $5.0 million at June 30, 2024 and December 31, 2023, respectively, that consists of:

• $4.0 million and $4.1 million of deferred income tax liabilities related to indefinite lived intangible assets; and

• $0.8 million and $0.9 million of deferred state income tax liabilities.

As of June 30, 2024 and December 31, 2023, the Company carried a liability for unrecognized tax benefits of zero. The Company classifies interest and penalty accruals, if any, related to unrecognized tax benefits as income tax expense.  The Company recorded income tax expense of zero related to interest and penalty accruals for the three and six months ended  June 30, 2024 and  June 30, 2023.