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Income Taxes
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The (benefit from) provision for income taxes for years ending December 31, 2021, 2020 and 2019 are as follows:
December 31,
(Dollars in Thousands)202120202019
Current:
Federal$— $— $— 
State and Local345 363 492 
Total current345 363 492 
Deferred:
Federal(23,650)(6,440)546 
State and Local(4,552)(1,364)169 
Total deferred(28,202)(7,804)715 
Total (benefit from) provision for incomes taxes$(27,857)$(7,441)$1,207 
Deferred taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and deferred tax liabilities as of December 31, 2021 and 2020 are as follows:
(Dollars in Thousands)December 31, 2021December 31, 2020
Deferred tax assets
Net operating loss carryforwards$10,911 $9,758 
Stock compensation28,767 657 
Lease liability2,416 — 
Other accruals545 531 
Total gross tax assets42,639 10,946 
Less: valuation allowance— — 
Total deferred tax assets42,639 10,946 
Deferred tax liabilities
Fixed and intangible assets
(7,980)(5,993)
Right-of-use asset(1,295)— 
Total deferred tax liabilities
(9,275)(5,993)
Deferred tax assets, net
$33,364 4,953 
For the years ended December 31, 2021 and 2020, the Company completed an assessment of the likelihood of realizing all or some portion of its net deferred tax assets. Based on an analysis of the positive and negative evidence, the Company determined it was more likely than not that the Company will be in a position to realize the benefits of the deferred tax asset as a result of consistent profitability excluding non-recurring stock compensation charges in connection with the Company's IPO. As such, no valuation allowance was recorded in either year. As of December 31, 2021, the Company has generated federal and state net operating loss carryforwards of approximately $45.5 million and $27.0 million (post-apportioned state NOL) respectively, that begin to expire in 2034.
The following is a reconciliation of income tax computed at the U.S. federal statutory income tax rate to the (benefit from) provision for income taxes:
 AmountPercent
 December 31,December 31,
(Dollars in Thousands)202120202019202120202019
Tax (benefit) provision computed at Federal statutory income tax rate
$(45,806)$4,927 $1,922 21.0 %21.0 %21.0 %
Stock compensation
21,399 — 124 (9.8)— 1.4 
State tax expense, net of Federal benefit
(4,280)1,426 901 2.0 6.1 9.8 
Change in valuation allowance
— (13,710)(2,125)— (58.4)(23.2)
Rate change
10 (56)— — (0.2)— 
Other
820 (28)385 (0.4)(0.1)4.2 
(Benefit from) provision for income taxes
$(27,857)$(7,441)$1,207 12.8 %(31.6)%13.2 %
The stock compensation impacting the income tax provision are primarily attributable to stock-based compensation expense that is not deductible under Section 162(m) offset by tax deductible stock based compensation.
The 2021, 2020, 2019 and 2018 federal and state income tax returns are within the statute of limitations (“SOL”) and are currently not under examination by any federal or state tax authority.
The Company assesses the uncertainty in its income tax positions to determine whether a tax position of the Company is more likely than not to be sustained upon examination, including resolution of any related appeals of litigation processes, based on the technical merits of the position. For the tax position meeting the more-likely-than-not threshold, the tax amount recognized in the financial statements is reduced by the largest benefit that has a greater than 50% likelihood of being realized upon the ultimate settlement with the relevant taxing authority. As of December 31, 2021 and 2020, the Company had not recorded any reserves for uncertain tax positions or related interest and penalties.