Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of components of income tax expense

The components of income tax expense were as follows (in thousands):


	Year Ended December 31,
	2019		2020		2021

Current income tax expense:
Federal	$	5,803	$	5,685	$	513
State	1,425		2,146		1,535
	7,228		7,831		2,048
Deferred tax expense:
Federal	(1,766)		(608)		4,948
State	(275)		(203)		515
	(2,041)		(811)		5,463
Income Tax Expense	$	5,187	$	7,020	$	7,511

Schedule of tax effects of principal temporary differences

The tax effects of principal temporary differences are as follows (in thousands):


	As of December 31,
	2020		2021

Deferred tax assets
Operating lease liability	$	2,187	$	20,717
Allowance for doubtful accounts	1,487		2,061
Restricted stock	1,573		1,329
Accrued vacation and severance	695		768
Investment	564		774
Other	596		716
Stock option compensation expense	63		159
Net operating loss	—		3,338
Total gross deferred tax assets	7,165		29,862
Valuation allowance	(536)		(743)
Total net deferred tax assets	6,629		29,119
Deferred tax liabilities
Income tax deductible capitalized software development costs	(2,468)		(2,121)
Operating lease asset	(2,161)		(19,442)
Property and equipment	(1,867)		(10,110)
Prepaid expenses	(1,294)		(1,136)
Goodwill and intangibles	(1,419)		(1,302)
Other comprehensive income- unrealized gain on interest rate cap	—		(67)
Total deferred tax liabilities	(9,209)		(34,178)
Deferred tax liabilities, net	$	(2,580)	$	(5,059)

Schedule of difference of income tax expense from the United States Federal income tax rates

Income tax expense differs from the amount of tax determined by applying the United States Federal income tax rates to pretax income and loss due to the application of state apportionment laws, permanent tax differences, and other temporary differences (in thousands):


	Year Ended December 31,
	2019				2020				2021
	Amount		%		Amount		%		Amount		%

Tax expense at statutory rate	$	3,192	21.00	%	$	5,427	21.00	%	$	5,305	21.00	%
State taxes, net	852		5.60	%	1,156		4.48	%	1,576		6.24	%
Permanent differences	244		1.61	%	491		1.90	%	678		2.68	%

Equity-based compensation benefits	371		2.44	%	(305)		(1.18)	%	(219)		(0.87)	%
Post-employment benefits	345		2.27	%	(67)		(0.26)	%	—		—	%
Uncertain tax position	93		0.61	%	49		0.19	%	—		—	%
Valuation allowance	213		1.40	%	287		1.11	%	206		0.82	%
Other	(123)		(0.80)	%	(18)		(0.07)	%	(35)		(0.14)	%
	$	5,187	34.13	%	$	7,020	27.17	%	$	7,511	29.73	%