Note 14 - Taxes

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Taxes

Note 14 – Taxes

Income tax expense during interim periods is based on applying an estimated annual effective income tax rate to year-to-date income, plus any significant unusual or infrequently occurring items, such as the net gain on change in fair value of debt held under the fair value option, which are recorded in the interim period. The provision for income taxes for the three months ended June 30, 2023 reflects an income tax benefit of less than $0.1 million at an estimated annual effective tax rate of 23.1%. There was no income tax benefit (expense) for the three months ended June 30, 2024. The provision for income taxes for the six months ended June 30, 2024 and 2023 reflects an income tax (expense) benefit of $(0.1) million and $1.7 million, respectively, at an estimated annual effective tax rate of (0.42)% and 23.1%, respectively. The difference between the Company’s effective tax rate and the federal statutory rate is primarily due to the loss attributable to the Operating Partnership and net gain on change in fair value of debt held under the fair value option, each of which is not subject to tax and state income taxes and the fact the Company had a full valuation as of June 30, 2024 and December 31, 2023. As of June 30, 2024, the Company maintained a full valuation allowance on its deferred tax assets as the timing of the utilization of its net operating losses is uncertain. For the three and six months ended June 30, 2024, the Company recorded a valuation allowance of $1.9 million and $3.6 million, respectively, against the deferred tax asset.