Income Taxes

3 Months Ended

Mar. 31, 2025

Income Taxes

Income Taxes

11. Income Taxes.

For the three months ended March 31, 2025, the Company recorded income tax expense of 20.2% on income from continuing operations. For the three months ended March 31, 2024, the Company recorded an income tax benefit of 18.9% on loss from continuing operations. For the three months ended March 31, 2025, the rate differs from the federal statutory rate of 21% due to state taxes of 7.3%, adjustments from prior year of (3.9)%, and other permanent items of (4.2)%. For the three months ended March 31, 2024, the rate differs from the federal statutory rate of 21% due to state taxes of 4.7%, valuation allowance change of 17.6%, and nondeductible transaction costs and other permanent items of (24.4)%.

For the three months ended March 31, 2025 and 2024, the Company recorded income tax expense of $156,000 and an income tax benefit of $347,000 on the income (loss) from continuing operations before income taxes, respectively.

During the three months ended March 31, 2024, the Company established deferred tax liabilities related to the Acquisition in the majority ownership of Bloomia. The Company anticipates that the deferred tax liabilities will result in future taxable income that will allow for the realization of the federal deferred tax assets.

As of March 31, 2025, and December 31, 2024, the Company has recorded a liability of $35,000 for uncertain tax position taken on tax returns in previous years. The amount of the unrecognized tax benefits, if recognized, that would affect the effective income tax rates of future periods is $35,000. As of March 31, 2025, the Company has recorded an income tax receivable of $105,000 included in prepaids and other current assets on the condensed consolidated balance sheet.