Income Taxes (Tables)

9 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

Effective Income Tax Rate Reconciliation

A reconciliation of the Company’s statutory rate to the effective tax rate for the three and nine months ended September 30, 2023 and 2022 is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Taxes at statutory rate		21.0	%		21.0	%		21.0	%		21.0	%
State taxes, net of federal benefit		5.8	%		5.6	%		5.8	%		5.6	%
Executive compensation		1.4	%		1.5	%		1.4	%		1.5	%
Corporate-owned life insurance		(0.2	%)		1.1	%		(0.2	%)		1.1	%
Other permanent differences		0.4	%		1.0	%		0.3	%		0.7	%
Prior year tax adjustments		(27.1	%)		0.3	%		(10.8	%)		(0.3	%)
Uncertain tax position		19.1	%		—			6.9	%		—
Worthless stock		(20.2	%)		(17.7	%)		(7.3	%)		(5.5	%)
Capital loss		—			—			(6.7	%)		—
Valuation allowance		3.1	%		0.7	%		1.9	%		1.0	%
Equity-based compensation		(0.6	%)		(1.3	%)		(1.6	%)		(1.4	%)
Tax credits		(1.3	%)		(0.5	%)		(1.3	%)		(0.5	%)
Taxes at effective rate		1.4	%		11.7	%		9.4	%		23.2	%

Components and Reconciliation of Unrecognized Tax Benefits

The components and a reconciliation of unrecognized tax benefits are as follows:

	September 30, 2023		December 31, 2022
Transfer pricing	$	145	$	145
Section 41 tax credit		4,595		—
Section 174 expense capitalization		21,416		—
Total unrecognized tax benefits liabilities	$	26,156	$	145

Unrecognized tax benefits at January 1, 2022	$	450
Decrease attributable to tax positions taken during the prior period		(305	)
Unrecognized tax benefits at December 31, 2022		145
Increase attributable to tax positions taken during the current period		26,011
Unrecognized tax benefits at September 30, 2023	$	26,156