Income Taxes

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The table below presents the components of income tax expense (benefit) for the following periods

	Year Ended December 31,
	2024		2023 (as restated)		2022 (as restated)
Federal:
Current	$	—	$	—	$	—
Deferred	—		(323)		(1,539)
Total Federal	—		(323)		(1,539)
State:
Current	16		13		40
Deferred	(37)		88		(385)
Total State	(21)		101		(345)
Total Foreign	(235)		—		—
Income tax expense (benefit)	$	(256)	$	(222)	$	(1,884)

The following is the reconciliation of the amounts computed using the federal statutory income tax rate and the amounts computed using the effective income tax rate:

	Year Ended December 31,
	2024			2023 (as restated)			2022 (as restated)
Tax benefit at federal statutory rates	$	(62,118)		$	(14,881)		$	(23,724)
State income tax, net of federal tax benefit	(11,422)			(5,070)			(6,426)
Class B Incentive Unit equity-based compensation	(4)			727			1,001
Valuation allowance	46,739			17,248			25,205
Net increase (decrease) in fair value of derivatives	11,281			1,559			(334)
Goodwill impairment	15,544			—			1,900
Other permanent differences	(276)			195			494
Income tax expense (benefit)	$	(256)		$	(222)		(1,884)
Effective tax rate	0.1		%	0.3		%	1.7		%

The table below presents the components of net deferred tax assets and deferred liabilities:

	December 31, 2024		December 31, 2023 (as restated)
Deferred tax assets:
Net operating loss carryforwards	$	62,811	$	32,017
Interest carryforwards	12,755		8,356
Amortizable transaction costs	2,121		2,285
Accrued expenses	1,643		1,330
Equity-based compensation	3,175		2,313
Derivative liability	30,824		130
Depreciation and amortization	7,083		6,594
Lease liabilities	2,741		1,436
Section 174 costs	8,327		3,268
Other assets	109		493
Total deferred tax assets	131,589		58,222
Valuation allowance	(112,003)		(46,569)
Net deferred tax assets	19,586		11,653
Deferred tax liabilities:
Discount on debt	16,340		10,081
Prepaid expenses	752		765
Right-of-use assets	2,494		1,135
Total deferred tax liabilities	19,586		11,981
Net deferred tax (liabilities) assets	$	—	$	(328)

As of December 31, 2024, the Company has $219.0 million of U.S. federal net operating losses, all of which can be carried forward indefinitely.

As of December 31, 2024, the Company has $231.4 million of U.S. state net operating losses which will begin to expire in 2031.

A valuation allowance is provided for deferred income tax assets when it is more likely than not that future tax benefits will not be realized. The Company assesses whether a valuation allowance should be established against deferred tax assets based upon consideration of all available evidence, both positive and negative, using a more likely than not standard. This assessment considers, among other matters, the Company’s history of losses, the duration of statutory carryforward periods, the Company’s experience with tax attributes expiring, impacts of enacted changes in tax laws and tax planning strategies, and the taxable income generated through the future reversals of deferred tax liabilities. In making such judgments, significant weight is given to evidence that can be objectively verified. After analyzing all available evidence, the Company determined it was more likely that it would not be able to utilize all of its deferred tax assets, and has therefore established a full valuation allowance. The Company had valuation allowances against net deferred tax assets of $112.0 million and $46.6 million as of December 31, 2024 and December 31, 2023, respectively. During the year ended December 31, 2024, the increase in the valuation allowance was primarily attributable to a net increase in our deferred tax assets resulting from net operating losses and section 174 capitalization.

Unrecognized Tax Benefits

As of December 31, 2024 and December 31, 2023, the Company had gross unrecognized tax benefits of $0.8 million and $0.8 million, respectively. The unrecognized tax benefit was recorded as a reduction in our gross deferred tax assets, offset by a corresponding reduction in our valuation allowance. None of the unrecognized tax benefits, if recognized, would affect the effective tax rate because of the valuation allowance. There are no interest and penalties associated with the unrecognized tax benefits. For the year ended December 31, 2024 and prior periods, we were subject to income taxes only in the United States, and all tax years since the Company’s inception are open for examination.

The table below presents the Company’s gross unrecognized tax benefits:

Unrecognized tax benefits as of December 31, 2022	$	785
Increases related to positions taken on prior year items	—
Unrecognized tax benefits as of December 31, 2023	$	785
Increases related to positions taken on prior year items	—
Unrecognized tax benefits as of December 31, 2024	$	785