Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Components of the Income Tax (Benefit) Provision

The components of the income tax provision are as follows:


	Year Ended December 31,
	2023		2022		2021
Current:
Federal	$	—	$	(483)	$	1,065
State	(399)		(644)		(205)
Total current	(399)		(1,127)		860
Deferred
Federal	(66)		285		8,561
State	(157)		—		852
Total deferred	(223)		285		9,413
Income tax (expense) benefit	$	(622)	$	(842)	$	10,273

Schedule of Significant Deferred Tax Assets and Deferred Tax Liabilities

The valuation allowance relates to deferred tax assets for which it is more likely than not that the tax benefit will not be realized.


	December 31,
	2023		2022
Deferred tax assets
Accrued expenses and other	$	3,721	$	1,230
Unrealized gain/loss on investments	811		1,296
Stock-based compensation	2,638		1,626
Deferred revenue	27,599		49,053
Goodwill	9,217		6,378
Operating lease liabilities	793		1,071
Loss and loss adjustment reserves	2,479		16,392
Net operating losses	102,044		100,920
Disallowed interest	9,650		5,676
Research and development capitalized costs	169		521
Valuation allowance	(140,535)		(117,568)
Total deferred tax assets	18,586		66,595
Deferred tax liabilities
Property and equipment	(98)		(87)
Intangibles	(1,167)		(3,614)
Operating lease right-of-use assets	(774)		(1,026)
Deferred policy acquisition costs	(5,715)		(1,907)
Reinsurance balance due	(11,491)		(59,794)
Internally developed software	—		(590)
Total deferred tax liabilities	(19,245)		(67,018)
Net deferred tax liabilities	$	(659)	$	(423)

Schedule of Reconciliation of the Income Tax (Benefit) Provision

A reconciliation of the income tax provision to the amounts computed by applying the statutory federal income tax rate to earnings before income taxes is shown as follows:


	Year Ended December 31,
	2023		2022		2021
Tax computed at federal statutory rate	$	27,995	$	32,701	$	24,492
State tax, net of federal tax benefit	1,934		4,879		5,531
Loss on impairment	(4,775)		(3,836)		—
Equity compensation	(3,311)		(3,939)		12,821
Officer compensation	(15)		(860)		(5,306)
Debt transactions	(1,591)		4,808		(1,791)
Enacted tax rate changes	(2,061)		90		123
Return to provision	4,816		(6,533)		(648)
Valuation allowance	(23,453)		(27,724)		(25,296)
Other	(161)		(428)		347
Income tax benefit (expense)	$	(622)	$	(842)	$	10,273