Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Income (Loss) Before Income Taxes by Jurisdiction

Income (loss) before income taxes by jurisdiction was as follows (in thousands):

	Years ended December 31,
	2024		2023		2022
U.S.	$	4,024	$	12,419	$	(5,112)
Canada	(5)		(27)		(83)
Total	$	4,019	$	12,392	$	(5,195)

Difference between the Federal Corporate Tax Rate and the Effective Tax Rate

The difference between the Federal corporate tax rate and the effective tax rate is comprised of the following (in thousands).

	Years ended December 31,
	2024					2023					2022
Income tax provision computed at US federal statutory rate	$	844		21.0	%	$	2,603		21.0	%	$	(1,091)		21.0	%
Canadian rate differential	—			—		—			—		87			(1.7)
State and local income taxes, net of federal income taxes	359			8.9		349			2.8		128			(2.5)
Stock-based compensation	158			3.9		452			3.6		319			(6.1)
Other permanent items	153			3.8		—			—		—			—
Compensation subject to Section 162(m)	185			4.6		—			—		—			—
Other, net	105			2.7		(532)			(4.2)		(10)			0.2
Provision for income taxes	$	1,804		44.9	%	$	2,872		23.2	%	$	(567)		10.9	%
Effective income tax rate	44.9		%			23.2		%			10.9		%

Income Tax Provision (Benefit) as Set Forth in the Consolidated Statements of Income

Income tax provision as set forth in the Consolidated Statements of Operations consisted of the following components (in thousands):

	Years ended December 31,
	2024		2023		2022
Current taxes:
U.S. Federal	$	2,664	$	1,370	$	14
State and local	658		466		237
Foreign	—		—		98
Total current taxes	3,322		1,836		349
Deferred taxes:
U.S. Federal	(1,359)		1,014		(888)
State and local	(159)		22		(44)
Foreign	—		—		16
Total deferred taxes	(1,518)		1,036		(916)
Total income tax provision	$	1,804	$	2,872	$	(567)

Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities are presented below (in thousands).

	As of December 31,
	2024		2023
Deferred tax assets:
Stock-based compensation expense	$	1,156	$	1,160
Operating lease liabilities	735		1,039
Compensation and benefits payable	1,867		1,465
Accrued contingent consideration	490		—
Deferred compensation	468		464
Acquisition expenses	885		876
Other	91		—
Total deferred tax assets	5,692		5,004
Deferred tax liabilities:
Property and equipment	(36)		(160)
Intangibles	(2,137)		(1,917)
Unrealized gains on investments	(642)		(614)
Operating lease right-of-use assets	(633)		(915)
Contingent consideration	—		(636)
Other	—		(36)
Total deferred tax liabilities	(3,448)		(4,278)
Net deferred tax assets	$	2,244	$	726

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the change in recorded uncertain tax positions during the years ended December 31, 2024 and 2023 follows (in thousands):

Balance at December 31, 2022	$	21
Reductions for tax positions related to prior years	(21)
Balance at December 31, 2023	—
Balance at December 31, 2024	$	—