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Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes
Note 13 — Income Taxes
The Company operates exclusively within the U.S. and is subject to U.S. federal and various state income tax. The effective U.S. federal income tax rate applicable to the Company for the years ended December 31, 2025 and 2024 was 31% and 29%, respectively. Total income tax expense for the year ended December 31, 2025 differed from amounts computed by applying the U.S. federal statutory tax rate of 21% primarily due to the impact of state income taxes and updates to shared based compensation as well as certain non-deductible expenses and for the year ended December 31, 2024 primarily due to the impact of state income taxes as well as certain non-deductible expenses.
Historically, utilization of a portion of the Company's net operating loss carryforwards has been subject to limitations of utilization under Section 382 of the Internal Revenue Code of 1986 (“Section 382”), as amended. The Company incurred an ownership change, triggering another Section 382 loss limitation, during the three months ended June 30, 2023.
On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act ("OBBBA"). The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act, including 100% bonus deprecation, domestic research cost expensing, and the business interest expense limitation. ASC 740, Income Taxes, requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation is enacted. As a result, the Company evaluated the legislation and determined it did not have a material effect on the provision for income taxes for the year ended December 31, 2025.
Years Ended December 31,
20252024
Current expense
Federal$0.1 $0.3 
State— 0.4 
Total current expense0.1 0.7 
Deferred expense
Federal4.9 6.4 
State0.5 0.5 
Total deferred expense5.4 6.9 
Income tax expense$5.5 $7.6 
Cash payments of U.S. federal and state income taxes, net of refunds, were as follows (in millions):
20252024
Cash payments of federal income taxes$0.2 $— 
Cash payments of state income taxes
Texas0.4 0.4 
Colorado— 0.1 
Other states0.1 0.1 
Total cash payments$0.7 $0.6 
A reconciliation of the expected income tax expense on income before income taxes using the statutory federal income tax rate of 21% for 2025 and 2024 to income tax expense follows (in millions):
December 31,
20252024
Tax EffectedRateTax EffectedRate
Income before income taxes$17.8 $26.0 
Income tax expense computed at statutory rate$3.7 21 %$5.5 21 %
Reconciling items
State income taxes, net of federal tax benefit0.5 3 %1.0 4 %
Changes in valuation allowances— — %
Meals0.8 4 %0.8 3 %
Non-deductible executive compensation0.4 2 %0.5 2 %
Non-deductible expenses and other0.1 1 %(0.2)(1)%
Income tax expense$5.5 31 %$7.6 29 %
As of December 31, 2025, the Company has net operating loss carryforwards of approximately $103.3 million, of which $51.6 million are subject to Section 382 limitations. Of this amount, $97.4 million of losses carryforward indefinitely with the remaining loss carried forward expiring beginning in 2034.
The tax effects of the cumulative temporary differences resulting in the net deferred income tax liability, which are shown in Deferred tax liability on the Consolidated Balance Sheets, are as follows (in millions):
December 31,
20252024
Deferred income tax assets
Net operating loss carryforward$23.2 $11.9 
Stock based compensation1.7 1.8 
Right-of-use liability2.7 1.7 
Other1.5 1.1 
Net deferred income tax asset$29.1 $16.5 
Deferred income tax liabilities
Property and equipment(49.5)(32.8)
Right-of-use assets(2.5)(1.6)
Other liability(0.5)— 
Other(0.1)(0.3)
Deferred income tax liability(52.6)(34.7)
Net deferred income tax liability$(23.5)$(18.2)
Other tax matters
The Company qualified for federal government assistance through employee retention credit ("ERC") provisions of the Consolidated Appropriations Act of 2021. As previously reported, the Company filed amended tax returns with the Internal Revenue Service ("IRS") claiming a refund of certain payroll taxes from 2020 and 2021. As of December 31, 2025, the Company has received a portion of the total claim in cash payments and recognized this amount in Other income within the
Consolidated Statement of Operations. The Company has not recognized any receivable for the remaining claimed amount and plans to record the impact of such claims in the period refunds are received.
The Company is subject to the following material taxing jurisdictions: the U.S. and Texas. As of December 31, 2025, the Company has no current tax years under audit. The Company remains subject to examination for federal income taxes and state income taxes for tax years 2022 through 2025.
The Company has evaluated all tax positions for which the statute of limitations remains open and believes that the material positions taken would more likely than not be sustained upon examination. Therefore, as of December 31, 2025, the Company had not established any reserves for, nor recorded any unrecognized benefits related to, uncertain tax positions.
The Company’s policy is to recognize interest and penalties related to uncertain tax positions in income tax expense in the Consolidated Statements of Operations. As of December 31, 2025, the Company had not recognized any interest or penalties related to uncertain tax positions in the financial statements.