Note 16 - Taxes

6 Months Ended

Jun. 30, 2025

Income Tax Disclosure [Abstract]

Taxes

Note 16 – 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, 2025 reflects an income tax expense of $1.2 million at an estimated annual effective tax rate of 4.9%. There was no income tax expense for the three months ended June 30, 2024. The provision for income taxes for the six months ended June 30, 2025 and 2024 reflects an income tax expense of $1.2 million and $0.1 million, respectively, at an estimated annual effective tax rate of 4.9% and 0.42%, respectively. The difference between the Company’s effective tax rate and the federal statutory rate is primarily due to the income attributable to the Operating Partnership and valuation allowance recorded during each period. As of June 30, 2025, the Company had deferred tax liabilities, net of deferred tax assets, of $6.9 million. The deferred tax assets were offset by a valuation allowance of $8.1 million, resulting in a net deferred tax liability of $1.2 million. As of December 31, 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, 2025, the Company recorded a reduction in the valuation allowance of $4.3 million and $2.3 million, respectively, against the deferred tax asset. 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.