Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2025 |
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| Income Tax Disclosure [Abstract] |
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| Schedule of Components of Income (Loss) from Continuing Operations before Provision for Income Taxes |
The components of income from continuing operations before provision (benefit) for income taxes consisted of the following (in thousands):
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Years Ended December 31, |
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2025 |
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2024 |
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2023 |
| United States |
$ |
6,396 |
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|
$ |
(14,396) |
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|
$ |
(39,708) |
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| Foreign |
(3,376) |
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1,368 |
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(693) |
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$ |
3,020 |
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$ |
(13,028) |
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$ |
(40,401) |
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| Schedule of Provision (Benefit) for Income Taxes |
The provision (benefit) for income taxes consisted of the following (in thousands):
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Years Ended December 31, |
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2025 |
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2024 |
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2023 |
| Federal: |
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| Current |
$ |
1,190 |
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|
$ |
138 |
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$ |
(220) |
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| Deferred |
3,338 |
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(84) |
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(5,342) |
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4,528 |
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54 |
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(5,562) |
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| State: |
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| Current |
601 |
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|
595 |
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|
277 |
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| Deferred |
(206) |
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(1,331) |
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(1,087) |
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395 |
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(736) |
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(810) |
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| Foreign: |
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| Current |
— |
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— |
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— |
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| Deferred |
6 |
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16 |
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6 |
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6 |
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16 |
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6 |
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$ |
4,929 |
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|
$ |
(666) |
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|
$ |
(6,366) |
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| Schedule of Significant Components of Deferred Tax Assets (Liabilities), Net |
Significant components of the Company’s deferred tax assets, net consisted of the following (in thousands):
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December 31, |
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2025 |
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2024 |
| Deferred Tax Assets: |
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| Accrued expenses and bonuses |
$ |
4,670 |
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$ |
3,984 |
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| Advances and loans and other reserves |
21,712 |
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16,611 |
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| Deferred compensation and commissions |
8,728 |
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|
12,088 |
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| Operating lease liabilities |
21,760 |
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|
22,834 |
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| Stock-based compensation |
7,125 |
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|
7,682 |
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| Net operating and capital loss carryforwards |
6,358 |
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|
11,341 |
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| Other comprehensive income |
— |
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|
306 |
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| Amortizable intangibles and other |
4,569 |
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|
4,526 |
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| Other |
192 |
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— |
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| Deferred tax assets before valuation allowance |
75,114 |
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79,372 |
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| Valuation allowance |
(5,813) |
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(4,959) |
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| Deferred Tax Assets |
69,301 |
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|
74,413 |
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| Deferred Tax Liabilities: |
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| Property and equipment |
(1,271) |
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(2,744) |
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| Operating lease ROU assets, net |
(18,346) |
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(19,236) |
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| Prepaid expenses |
(1,056) |
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(895) |
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| State taxes |
(1,562) |
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(1,535) |
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| Other comprehensive income |
(37) |
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— |
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| Goodwill and other |
(2,443) |
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(1,923) |
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| Deferred Tax Liabilities |
(24,715) |
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(26,333) |
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| Deferred Tax Assets, Net |
$ |
44,586 |
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$ |
48,080 |
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| Schedule of Components of Provision for Income Taxes and Income before Provision for Income Taxes |
The following table is a reconciliation of the U.S. federal statutory tax rate of 21% to the Company's effective tax rate for the year ended December 31, 2025 in accordance with the guidance in ASU No. 2023-09 (in thousands).
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Year Ended December 31, |
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2025 |
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Amount |
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Rate |
| Income before provision for income taxes |
$ |
3,020 |
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|
100.0 |
% |
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| Income taxes at the federal statutory rate |
634 |
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|
21.0 |
% |
State taxes, net of federal benefit(1)
|
312 |
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|
10.3 |
% |
| Foreign tax effects: |
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| Statutory rate difference between Canada and US |
(186) |
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|
(6.2) |
% |
| Changes in valuation allowances |
854 |
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28.3 |
% |
| Other |
46 |
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1.5 |
% |
| Effect of cross-border tax laws |
(16) |
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(0.5) |
% |
| Nontaxable/nondeductible items: |
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| Travel and entertainment |
739 |
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24.5 |
% |
| Officers' compensation |
2,053 |
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68.0 |
% |
| Parking expense |
130 |
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4.3 |
% |
| Life insurance investment income |
(298) |
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(9.9) |
% |
| Dividend on unvested awards |
(209) |
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(6.9) |
% |
| Stock based compensation |
745 |
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24.7 |
% |
| Business gifts |
76 |
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2.5 |
% |
| Other |
49 |
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1.6 |
% |
| Provision for income taxes and effective income tax rate |
$ |
4,929 |
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|
163.2 |
% |
(1)State taxes in California and Texas made up the majority of the tax effect in this category.
The following table is a reconciliation of the U.S federal statutory rate of 21% to the Company's effective rate for the years ended December 31, 2024 and 2023 in accordance with the guidance prior to the adoption of ASU 2023-09 (in thousands):
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Years Ended December 31, |
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2024 |
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2023 |
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Amount |
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Rate |
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Amount |
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Rate |
| Income tax (benefit) expense at the federal statutory rate |
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$ |
(2,736) |
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|
21.0 |
% |
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$ |
(8,484) |
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21.0 |
% |
| State income tax (benefit) expense, net of federal benefit |
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(582) |
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4.5 |
% |
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(602) |
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1.5 |
% |
| Shortfall (windfall) tax benefits, net related to stock-based compensation |
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1,014 |
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(7.8) |
% |
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1,260 |
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(3.1) |
% |
| Change in valuation allowance |
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(337) |
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2.6 |
% |
|
388 |
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(0.9) |
% |
Permanent and other items (1)
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1,975 |
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(15.2) |
% |
|
1,072 |
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(2.7) |
% |
| (Benefit) provision for income taxes |
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|
$ |
(666) |
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5.1 |
% |
|
$ |
(6,366) |
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15.8 |
% |
(1)Permanent items relate principally to compensation charges (6.8% – 2024), meals and entertainment (5.5% – 2024), qualified transportation fringe benefits, and other items.
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