Income taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Income Taxes

Income taxes are included in the consolidated statements of income at December 31, 2019 and 2018 as below:

(in thousands)	December 31, 2019			December 31, 2018
Current income tax expense (benefit)
U.S Federal	$	401		$	(126	)
State		1,544			614
Total		1,945			488
Deferred income tax benefit
U.S Federal		(4,197	)		(793	)
State		(1,836	)		(154	)
Total		(6,033	)		(947	)
Total income tax benefit	$	(4,088	)	$	(459	)

Schedule of Reconciliation of Statutory Federal Income Tax Expense to Income Tax Expense

A reconciliation of the statutory federal income tax expense to the income tax expense from continuing operations provided at December 31, 2019 and 2018, is as follows:

(in thousands)	December 31, 2019			December 31, 2018
Income tax expense at the federal statutory rate - 21%	$	(1,854	)	$	(388	)
State and local income taxes - net of federal income tax benefits		(58	)		(61	)
Compensation deduction limitation - section 162(m) adjustment		357			—
Income taxed by shareholder before IPO		(867	)		—
Other - perms		77			171
Transaction Costs		607			—
Change in tax status		(2,355	)		—
Tax credits generated		(254	)		—
Other misc. tax		259			(181	)
Total income tax benefit	$	(4,088	)	$	(459	)
Effective tax rate		47.5	%		-2.5	%

Components of Deferred Income Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and liabilities are presented below:

(in thousands)	December 31, 2019			December 31, 2018
Deferred tax assets:
Deferred compensation	$	8,645		$	226
Inventory adjustments		1,837			—
Accrued expenses		211			—
Credits		279			—
Net operating loss		3,120			949
Other		—			288
Total deferred tax assets		14,092			1,464
Deferred tax liabilities:
Property, plant and equipment		8,354			4,379
Intangibles		19,305			16,034
Inventory adjustment		—			175
Other		622			—
Total deferred tax liabilities		28,281			20,587
Valuation allowance		—			—
Net deferred tax liability	$	(14,188	)	$	(19,123	)

Consolidated State NOL's Commence Expiry

Consolidated federal NOL’s are $13,827 and do not expire. In addition, consolidated state NOL’s commence expire as follows:

(in thousands)	Amount		Expire Commencing
Illinois	$	2,141		2039