Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

v3.25.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Components of Loss Before Taxes
The components of loss before income taxes were as follows:
Year Ended December 31,
2024 2023
(in thousands)
Domestic $ (305,991) $ (183,731)
Foreign —  — 
Total $ (305,991) $ (183,731)
Schedule of Components of Income Tax Expense
The components of income tax expense were as follows:
Year Ended December 31,
2024 2023
(in thousands)
Current income taxes:
Federal $ 1,217  $ 170 
State 4,260  2,525 
Total current income taxes 5,477  2,695 
Deferred income taxes:
Federal (835) — 
State (255) — 
Total deferred income taxes (1,090) — 
Total income tax expense $ 4,387  $ 2,695 
Schedule of Reconciliation Between the Income Tax Provision Computed By Applying The Statutory Federal Rate and the Actual Provision
A reconciliation of the statutory federal income tax to the Company’s provision for income taxes is as follows:
Year Ended December 31,
2024 2023
(dollars in thousands)
Tax at federal statutory rate $ (64,258) $ (38,584)
Non-controlling interest and nontaxable income 36,984  24,486 
Change in valuation allowance 29,929  29,781 
Investment in P3 LLC (796) (20,420)
Return to provision 2,006  4,134 
Deferred tax adjustments (21) 1,754 
Other reconciling items 543  1,544 
Total $ 4,387  $ 2,695 
Effective tax rate (1.4) % (1.5) %
Schedule of Deferred Income Tax Assets and Liabilities
Deferred income taxes result from differences in the recognition of amounts for tax and financial reporting purposes, as well as operating loss and tax credit carryforwards. Significant components of the Company’s deferred income tax assets and liabilities are as follows:
December 31,
2024 2023
(in thousands)
Deferred tax assets:    
Investment in P3 LLC $ 32,438  $ 19,709 
Net operating loss carryforwards 33,087  21,525 
Accrued liabilities 181  221 
Goodwill and identifiable intangible assets 1,712  1,923 
Section 163j interest limitation 5,104  3,031 
Other deferred tax assets 459  632 
Total deferred tax assets 72,981  47,041 
Less: valuation allowance (71,457) (46,370)
Net deferred tax assets 1,524  671 
Deferred tax liabilities:
Operating lease, right-of-use assets (410) (338)
Other deferred tax liabilities (24) (333)
Total deferred tax liabilities (434) (671)
Net deferred tax asset $ 1,090  $ — 
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
2024 2023
(in thousands)
Balance at January 1 $ —  $ — 
Additions based on tax positions related to the current year 4,285  — 
Balance at December 31 $ 4,285  $ —