Income Taxes

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Note 17 - Income Taxes

The following table presents the Company’s provision (benefit) for income taxes for continuing operations for the periods indicated:

		Year Ended December 31,
		2024		2023
		(In thousands)
Current:
U.S. Federal	$	—	$	—
State		—		—
Total current	$	—	$	—
Deferred:
U.S. Federal	$	—	$	—
State		—		—
Total deferred	$	—	$	—
Total provision (benefit) for income taxes	$	—	$	—

The following table presents the reconciliation between the provision (benefit) for income taxes included in the Company’s consolidated statement of operations with the provision (benefit) which would result from the application of a blended statutory federal and state income tax rate of 24.4% for the periods presented:

	Year Ended December 31,
	2024			2023
	(In thousands)
Income tax benefit at federal statutory rate	$	(8,372	)	$	(16,606	)
State tax expense		(1,339	)		(3,112	)
Loss on adjustment to fair value		2,045			11,030
Other nondeductible expenses		41			511
Federal prior year adjustments		(606	)		—
Officer compensation disallowance		849			—
Change in valuation allowance		7,382			8,177
Total provision (benefit) for income taxes	$	—		$	—

Deferred income taxes are provided to reflect the future tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements.

The Company’s deferred tax assets have been reduced by a valuation allowance due to a determination made that it is more likely than not that some or all of the deferred assets will not be realized based on the weight of all available evidence. The Company closely monitors and weighs all available evidence, including both positive and negative, in making its determination whether to maintain a valuation allowance. As a result of the significant weight placed on the Company’s cumulative negative earnings position, the Company’s net deferred tax asset has been reduced by a full valuation allowance as of December 31, 2024.

The following table presents the temporary differences and carryforwards which give rise to deferred tax assets and liabilities for the periods presented:

	Year Ended December 31,
	2024			2023
	(In thousands)
Deferred tax assets
Property and equipment	$	—		$	3,891
Stock-based compensation		581			728
Commodity derivative contracts		1,071			—
Transaction costs		58			—
Lease liabilities, net		332			32
Federal NOL carryforward		12,443			7,489
State NOL carryforward		2,694			1,924
Valuation allowance		(16,325	)		(13,927	)
Total deferred tax assets	$	854		$	137
Deferred tax liabilities
Property and equipment	$	(495	)	$	—
Right-of-use asset, net		(322	)		(38	)
Investment in partnership		(37	)		(99	)
Total deferred tax liabilities	$	(854	)	$	(137	)
Net deferred tax liability	$	—		$	—

As of December 31, 2024 and 2023, the Company has U.S. federal income tax net operating loss carryforwards (“NOLs”) of approximately $56.3 million and $35.7 million, respectively, available to reduce future U.S. taxable income. As of December 31, 2024, $8.9 million of the $56.3 million federal NOLs expire during the years 2030 through 2037, while $47.4 million do not have expiration dates. Additionally, as of December 31, 2024 and 2023, the Company has state NOLs of approximately $65.5 million and $44.9 million, respectively, available to reduce future U.S. taxable income. As of December 31, 2024, $42.4 million of the $65.5 million state NOLs expire during the years 2040 through 2043, while $21.1 million do not have expiration dates.

The Company believes that it is likely that an ownership change as defined in Section 382 of the Code has occurred. If the Company has experienced such an ownership change, utilization of the NOLs would be subject to an annual limitation, which is determined by first multiplying the value of the Company’s stock at the time of the ownership change by the applicable long-term, tax-exempt rate, and then could be subject to additional adjustments, as required. Any such limitation may result in the expiration of a portion of the NOLs before utilization. Any carryforwards that expire prior to utilization as a result of the limitation will be removed from deferred tax assets with a corresponding adjustment to the valuation allowance.

The Company files income tax returns in the U.S. and various state jurisdictions and is subject to examination in the various jurisdictions in which it files. The Company’s tax years 2021 to present remain open for federal examination. Additionally, tax years 2010 through 2020 remain subject to examination for the purpose of determining the amount of federal NOL. The number of years open for state tax audits varies, depending on the state, but is generally from three to five years.

The Company did not have any unrecognized tax benefits as of December 31, 2024 or 2023.