Income Taxes

9 Months Ended

Sep. 30, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company incurs income tax expense related to its Taxable Subsidiaries. The components of income tax expense were as follows during the quarter and nine months ended September 30, 2025 and 2024 (in thousands):

	Quarter Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Current tax expense	$	28	$	15	$	75	$	10
Deferred tax expense	3,497		1,300		8,510		2,567
Total income tax expense	$	3,525	$	1,315	$	8,585	$	2,577

The effective tax rate for the nine months ended September 30, 2025 and 2024 was 8.0% and 3.6%, respectively. The primary items giving rise to the difference between the 21.0% federal statutory rate applicable to corporations and the effective tax rates are due to state taxes and the benefits of the partnership structure.

Significant components of the Company’s deferred tax assets and liabilities as of September 30, 2025 and December 31, 2024 were as follows (in thousands):

	September 30, 2025		December 31, 2024
Deferred tax assets:
Carryforwards of net operating loss	$	4,113	$	1,818
Other	75		45
Valuation allowance	(379)		(383)
Total deferred tax assets	3,809		1,480
Deferred tax liabilities:
Unrealized appreciation on investments	(22,163)		(11,324)
Total deferred tax liabilities	(22,163)		(11,324)
Deferred tax liabilities, net	$	(18,354)	$	(9,844)