Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Taxes

Summary of income tax expense

Year Ended December 31	2024		2023
State	$	21,000	$	20,000
Foreign		730,000		—
Total current tax expense		751,000		20,000
Federal		(2,731,000)		—
State		(193,000)		—
Foreign		(156,000)
Total deferred tax benefit		(3,080,000)		—
Total income tax (benefit) expense	$	(2,329,000)	$	20,000

Summary of reconciliation of effective federal income tax rate

Year Ended December 31	2024		2023
Federal statutory rate	21.0	%	21.0	%
Stock-based awards	—		(0.5)
State income taxes	1.0		3.1
Foreign income taxes	(0.6)		—
Permanent differences	(0.7)		—
Change in valuation allowance	5.4		(24.6)
Other	(0.9)		0.3
Effective income tax rate	25.2	%	(0.7)	%

Schedule of deferred tax assets (liabilities)

As of December 31	2024		2023
Deferred tax assets
Accrued expenses	$	57,000	$	117,000
Stock-based awards		—		9,000
Reserve for bad debts		—		2,000
Net operating loss and credit carryforwards		1,968,000		529,000
Right of use liability		8,458,000
Other		665,000		2,000
Total deferred tax assets	$	11,148,000	$	659,000
Deferred tax liabilities
Depreciation	$	(2,207,000)	$	(5,000)
Accrued expenses		(1,530,000)		—
Intangible assets		(6,581,000)		—
Right of use asset		(8,321,000)		—
Prepaid expenses		—		(9,000)
Other		(7,000)		—
Total deferred tax liabilities		(18,646,000)		(14,000)
Net deferred tax liabilities		(7,498,000)		645,000
Valuation allowance		(144,000)		(645,000)
Net deferred tax liabilities after valuation allowance	$	(7,642,000)	$	—

Summary of reconciliation of liability for uncertain tax positions

Balance at December 31, 2022	$	53,000
Decrease due to state tax expense		(16,000)
Increases due to interest and state tax		5,000
Balance at December 31, 2023	$	42,000
Decrease due to state tax expense		(8,000)
Increases due to interest and state tax		1,000
Balance at December 31, 2024	$	35,000