Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

The Company recognized income tax expense (benefit) of $15.0 million, $(16.9) million and $5.2 million during the years ended December 31, 2021, 2020 and 2019, respectively, which consists of the following (in thousands):

	2021		2020		2019
Current provision
Federal	$	1,489	$	—	$	(85)
State	7,418		—		43
Total current provision	8,907		—		(42)
Deferred provision
Federal	8,363		(12,286)		3,740
State	(2,253)		(4,632)		1,501
Total deferred provision	6,110		(16,918)		5,241
Total income tax expense (benefit)	$	15,017	$	(16,918)	$	5,199

Schedule of Reconciliation of Expected Income Taxes

A reconciliation of the “expected” income taxes computed by applying the federal statutory income tax rate to the total expense (benefit) is as follows (in thousands):

	2021		2020		2019
Computed “expected” tax expense (benefit)	$	9,781	$	(3,639)	$	(6,629)
Increase (decrease) in income taxes resulting from:
State income taxes	3,659		(2,848)		1,634
Return-to-provision	(258)		(7,613)		(340)
Change in fair value of contingent earnout shares	2,050		(1,782)		2,066
Change in fair value of warrants	—		(2,640)		4,423
Permanently non-deductible transaction costs	215		485		2,079
Officer's compensation	23		—		1,991
Other permanent items	18		220		(16)
Enacted rate change	(28)		(6)		—
Other	(442)		905		(9)
Total income tax expense (benefit)	$	15,017	$	(16,918)	$	5,199

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities were as follows at December 31 (in thousands):

	2021		2020
Deferred tax assets:
Net operating loss carryforwards	$	20,934	$	31,215
Location contracts and other intangibles	8,150		5,829
Stock-based compensation	2,513		1,428
Other	2,107		394
	33,704		38,866
Deferred tax liabilities:
Property and equipment	35,952		35,005
Unrealized gain on investments in convertible notes	—		37
	35,952		35,042
Total deferred tax (liability) asset, net	$	(2,248)	$	3,824

Schedule of Carryforwards of Net Operating Losses

The following table summarizes carryforwards of net operating losses as of December 31 (in thousands):

	2021			2020
	Amount		Expiration	Amount		Expiration
Federal net operating losses	$	61,514	Indefinite	$	108,830	2033
State net operating losses	106,810		2030	106,004		2030