Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

The Company recognized income tax expense (benefit) of $20.7 million, $15.0 million and $(16.9) million during the years ended December 31, 2022, 2021 and 2020, respectively, which consists of the following (in thousands):

	2022		2021		2020
Current provision
Federal	$	1,558	$	1,489	$	—
State	5,669		7,418		—
Total current provision	7,227		8,907		—
Deferred provision
Federal	13,743		8,363		(12,286)
State	(310)		(2,253)		(4,632)
Total deferred provision	13,433		6,110		(16,918)
Total income tax expense (benefit)	$	20,660	$	15,017	$	(16,918)

Schedule of Reconciliation of Expected Income Taxes

A reconciliation of the “expected” income taxes computed by applying the federal statutory income tax rate to the total expense (benefit) is as follows (in thousands):

	2022		2021		2020
Computed “expected” tax expense (benefit)	$	19,900	$	9,781	$	(3,639)
Increase (decrease) in income taxes resulting from:
State income taxes	4,289		3,659		(2,848)
Return-to-provision	(132)		(258)		(7,613)
Change in fair value of contingent earnout shares	(4,104)		2,050		(1,782)
Change in fair value of warrants	—		—		(2,640)
Permanently non-deductible transaction costs	137		215		485
Officer's compensation	177		23		—
Other permanent items	467		18		220
Enacted rate change	(121)		(28)		(6)
Other	47		(442)		905
Total income tax expense (benefit)	$	20,660	$	15,017	$	(16,918)

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities were as follows at December 31 (in thousands):

	2022		2021
Deferred tax assets:
Net operating loss carryforwards	$	15,089	$	20,934
Location contracts and other intangibles	—		8,150
Interest expense limitation carryforward	4,513		—
Stock-based compensation	3,019		2,513
Lease liabilities	1,469		—
Other	3,016		2,107
	27,106		33,704
Deferred tax liabilities:
Property and equipment	49,299		35,952
Location contracts and other intangibles	8,287		—
Lease assets	1,453		—
Interest rate caplets	4,693		—
Other	395		—
	64,127		35,952
Total deferred tax liability, net	$	(37,021)	$	(2,248)

Schedule of Carryforwards of Net Operating Losses

The following table summarizes carryforwards of net operating losses as of December 31 (in thousands):

	2022			2021
	Amount		Expiration	Amount		Expiration
Federal net operating losses	$	33,057	Indefinite	$	61,514	Indefinite
State net operating losses	106,939		2030	106,810		2030
Federal general business tax credit	132		2039	—		—