Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The benefit for income taxes consists of the following (in thousands):

	Years Ended December 31,
	2023		2022
Current:
Federal	$	195	$	73
State	(187)		(70)
Total Current	8		3
Deferred:
Federal	(928)		(3,466)
State	130		(642)
Total Deferred	(798)		(4,108)
Income tax benefit	$	(790)	$	(4,105)

Schedule of Effective Income Tax Rate Reconciliation

The benefit for income taxes shown above varies from the statutory federal income tax rate for those periods as follows (in thousands):

	Years Ended December 31,
	2023		2022
Tax benefit from federal statutory rate	$	(25,931)	$	(11,888)
Tax on income not subject to entity level federal income tax	6,584		4,085
State income taxes, net of federal tax effect	(4,304)		(1,639)
Change in fair value of warrant liabilities	(1,929)		(705)
Other permanent adjustments	950		26
Permanent adjustments - goodwill impairment	4,087		—
Permanent adjustments - Tax Receivable Agreement	—		(176)
Equity Conversion	(15,443)		—
True-ups and other	(3,094)		(2,343)
Uncertain tax position reserve	8,304		—
Research and development credit	—		(250)
Undistributed earnings	749		171
Foreign rate differential	(562)		—
Valuation allowance	30,113		8,857
Tax credits	(314)		(243)
Tax benefit	$	(790)	$	(4,105)

Schedule of Income before Income Tax, Domestic and Foreign

For years ended December 31, 2023 and 2022, the components of Net loss before income taxes are comprised of the following (in thousands):

	Years Ended December 31,
	2023		2022
Domestic	$	(111,785)	$	(56,605)
Foreign	(11,698)		—
Total Net loss before taxes	$	(123,483)	$	(56,605)

Schedule of Deferred tax assets and Liabilities

Deferred tax assets and liabilities are composed of the following (in thousands):

	Years Ended December 31,
	2023		2022
Deferred tax assets:
Investment in DMS Holdings LLC	$	58,622	$	34,137
Reserve accruals	65		156
Charitable contributions	23		18
Interest carryforward	10,681		5,131
Tax credit carryforwards	823		1,013
Property and equipment	—		(7)
Intangibles	1,709		—
Operating lease liabilities	190		343
Net operating loss	1,851		2,863
Total gross deferred tax assets	73,964		43,654
Less: Valuation allowance	(71,942)		(41,829)
Total deferred tax assets, net	2,022		1,825
Deferred tax liabilities:
Intangibles	—		(1,295)
Property and equipment	(1)		—
Operating lease right-of-use assets	(62)		(119)
Undistributed earnings	(2,273)		(1,523)
Total deferred tax liabilities	(2,336)		(2,937)
Net deferred tax liabilities	$	(314)	$	(1,112)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in thousands):

	Years Ended December 31,
	2023		2022
Balance, beginning of year	$	—	$	—
Additions for tax positions of the current years	33,589		—
Additions for tax positions of the prior years	—		—
Reductions for tax positions of prior years	—		—
Expiration of applicable statutes of limitations	—		—
Balance, end of year	$	33,589	$	—