Note 15 - Taxes

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Taxes

Note 15- Taxes

The income tax benefit consisted of the following for the years ended December 31, 2022 and 2021:

	For the Year Ended December 31,
(in thousands)	2022			2021
Current:
Federal	$	—		$	—
State		—			—
Total current tax expense (benefit)		—			—
Deferred:
Federal	$	(4,214	)	$	(2,471	)
State		(1,643	)		(1,062	)
Total deferred tax benefit		(5,857	)		(3,533	)
Total income tax benefit	$	(5,857	)	$	(3,533	)

The Company’s effective income tax rate for the years ended December 31, 2022 and 2021 reconciles with the federal statutory rate as follows:

	For the Year Ended December 31,
	2022			2021
Federal statutory rate		21.0	%		21.0	%
Loss attributable to partnership not subject to tax		—			(1.8	)%
State income taxes, net of federal tax benefit		6.0	%		5.5	%
Other		(1.0	)%		—
Prior year adjustment		1.7	%		0.1	%
Effective income tax rate on income before taxes		27.7	%		24.8	%

The difference between the Company’s effective tax rate and federal statutory rate for the years ended December 31, 2022 and 2021 is 6.7% and 3.8%, respectively, which is primarily due to state taxes and permanent items.

Deferred income tax liabilities are comprised of the following as of December 31, 2022 and 2021:

	For the Year Ended December 31,
(in thousands)	2022			2021
Investment in the Operating Partnership	$	(11,078	)	$	(12,349	)
NOL carryforwards		6,646			3,255
Equity compensation		461			130
Other		3			—
Total deferred tax liabilities	$	(3,968	)	$	(8,964	)

At December 31, 2022 and 2021, the Company had pre-tax federal and state income tax NOL carryforwards of approximately $24.6 million and $12.1 million, respectively, which will carry forward indefinitely for federal purposes and for most states.

The Company had no uncertain tax positions as of December 31, 2022 and 2021. Generally, for federal and state purposes, the Company's 2019 through 2022 tax years remain open for examination by tax authorities. Additionally, any net operating losses that were generated in prior years and utilized in these years may also be subject to examination by the Internal Revenue Service. The Company’s policy is to recognize interest and penalties associated with uncertain tax positions as part of income tax expense.