Income Taxes

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company incurs income tax expense (benefit) related to its Taxable Subsidiaries. The components of income tax expense (benefit) were as follows during the three months ended March 31, 2022 and 2021 (in thousands):

	Three Months Ended March 31,
	2022		2021
Current:
Federal	$	(174)	$	—
State	(44)		—
Total current tax benefit	(218)		—
Deferred:
Federal	512		(46)
State	184		(21)
Total deferred tax expense (benefit)	696		(67)
Income tax expense (benefit)	$	478	$	(67)

Significant components of the Company’s deferred tax assets and liabilities as of March 31, 2022 and December 31, 2021 were as follows (in thousands):

	March 31, 2022		December 31, 2021
Deferred tax assets:
Carryforwards for net operating loss	$	779	$	533
Other	19		18
Valuation Allowance	(23)		(22)
Total deferred tax assets	775		529
Deferred tax liabilities:
Investment basis	—		—
Unrealized appreciation on investments	(3,130)		(2,406)
Total deferred tax liabilities	(3,130)		(2,406)
Deferred tax liabilities, net	$	(2,355)	$	(1,877)