Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Provision for (Benefit from) Income Taxes

The components of the provision for (benefit from) income taxes for the years ended December 31, 2023, 2022, and 2021 are as follows (in thousands):

	For the Years Ended
	December 31,
	2023			2022			2021
Current
Federal	$	(66	)	$	193		$	918
State		941			2,178			152
Total Current	$	875		$	2,371		$	1,070
Deferred
Federal	$	3,752		$	3,995			(6,727	)
State		5			(302	)		(1,413	)
Total Deferred	$	3,757		$	3,693		$	(8,140	)
Income tax expense/(benefit)	$	4,632		$	6,064		$	(7,070	)

Schedule of Effective Income Tax Rate Reconciliation

The following is a reconciliation of the statutory federal income tax rate to the Company's effective tax rate for the years ended December 31, 2023, 2022, and 2021 are as follows:

	For the Years Ended
	December 31,
	2023			2022			2021
Federal statutory rate		21.0	%		21.0	%		21.0	%
Noncontrolling interest		(3.0	%)		(0.1	%)		0.0	%
State taxes, net of federal benefit		(25.1	%)		4.0	%		(20.8	%)
Nondeductible expenses 2		(134.8	%)		0.6	%		(4.6	%)
Expiration of net operating losses and tax credits		0.2	%		(7.3	%)		70.0	%
Valuation allowance increase/decrease		(1.8	%)		(0.3	%)		(247.8	%)
Uncertain tax positions		12.0	%		(0.8	%)		(9.8	%)
Return to provision adjustments and change in tax rates		(16.1	%)		(0.4	%)		0.9	%
Other		0.0	%		0.4	%		0.0	%
Effective rate 1		(147.6	%)		17.1	%		(191.1	%)

1 The overall rate impact was due to a decrease in the pre-tax income and an increase in non-deductible expenses. Due to the non-deductible characteristic of the expenses, the taxable income did not decrease at the same rate as the GAAP income, leading to this change in the tax rate.

2 The 2023 rate impact for “non-deductible expenses” was primarily driven by the increase in executive compensation due to the CEO transition, and a settlement with the Oregon DOJ.

Schedule of Deferred Tax Assets and Liabilities

The components of deferred tax assets as of December 31, 2023 and December 31, 2022 are as follows:

	As of			As of
	December 31,			December 31,
	2023			2022
Deferred tax assets:
Stock compensation	$	5,760		$	2,428
Interest expense		-			5,107
Other		-			1,382
Passthrough activity—investment in partnerships		9,932			9,029
Intangibles		-			1,365
Net operating losses and credit carryforwards		34,644			34,736
Total deferred tax assets		50,336			54,047
Valuation allowance for deferred tax assets		(12,818	)		(12,763	)
Deferred tax assets, net of valuation allowance	$	37,518		$	41,284
Deferred tax liabilities:
Property and equipment		-			(9	)
Total deferred tax liabilities		-			(9	)
Deferred tax assets, net	$	37,518		$	41,275

Schedule of Components of Company's Deferred Taxes

The reconciliation of the Company's unrecognized tax benefits, which is included in deferred tax assets, net on the Consolidated Balance Sheets, at the beginning and end of the year is as follows:

	For the Years Ended
	December 31,
	2023			2022
Balance at January 1	$	6,742		$	7,017
Additions based on tax positions related to the current year		-			-
Additions for tax positions of prior years		-			-
Reductions for tax positions of prior years		(550	)		(275	)
Settlements		-			-
Balance at December 31	$	6,192		$	6,742