Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

14. Income Taxes.

The Company is subject to income taxes in the U.S. federal jurisdiction and various states jurisdictions.

The income tax expense for the years ended December 31, 2023, 2022, and 2021 consists of (in thousands):

	2023			2022		2021
Current - Federal	$	34,975		$	12,858	$	2,455
Current - State		5,931			3,877		1,414
Deferred - Federal		(16,093	)		4,739		8,620
Deferred - State		(1,712	)		166		696
	$	23,101		$	21,640	$	13,185

The reconciliation of income tax expense computed at the statutory federal income tax rate of 21% to amounts included in the statements of operations is as follows:

	2023			2022			2021
Statutory rate		21.0	%		21.0	%		21.0	%
State tax		3.1	%		3.1	%		3.4	%
Executive compensation limitation		2.6	%		3.6	%		1.1	%
Tax credit		—			(1.9	)%		(0.6	)%
Stock compensation windfall		(4.4	)%		(5.6	)%		(0.6	)%
Other		2.1	%		0.5	%		0.7	%
		24.4	%		20.7	%		25.0	%

Deferred tax assets and liabilities reflect the net tax effects of net operating loss and tax credit carryovers and the temporary differences between the carrying amounts of assets and liabilities for financial reporting and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets/(liabilities) as of December 31, 2023 and 2022 are as follows (in thousands):

	2023			2022
Deferred tax assets:
Start-up costs	$	—		$	9,771
Deferred compensation		6,473			4,706
Inventory		448			296
Intangible assets		24,847			52
Accrued expenses		788			—
Operating lease liability		854			953
Capitalized research		4,927			4,255
Total deferred tax assets		38,337			20,033
Deferred tax liabilities:
Prepaid expenses		(1,023	)		(481	)
Right-of use asset		(759	)		(860	)
Other		(11	)		44
Total deferred tax liabilities		(1,793	)		(1,297	)
Deferred tax assets, net	$	36,544		$	18,736

The Company has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets. As of December 31, 2023, the Company determined that there is sufficient positive evidence to conclude that it is more likely than not that the above deferred taxes of approximately $37 million are realizable.

The Company has received several orphan drug designations by the FDA for products currently under development. The orphan drug designations allow the Company to claim increased federal tax credits for certain research and development activities.

An immaterial amount of interest and penalties were accrued through December 31, 2023 and 2022. The Company’s policy is to recognize any related interest or penalties in income tax expense. The Company is not currently under income tax examinations by any tax authorities.