Annual report pursuant to Section 13 and 15(d)

Income Taxes and Tax Receivable Agreement (Tables)

v3.22.4
Income Taxes and Tax Receivable Agreement (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Summary of Income (loss) Before Income Taxes

Income (loss) before income taxes is as follows:

 

 

 

Years ended December 31,

 

 

 

2022

 

 

2021

 

U.S. income (loss) before income taxes

 

$

3,421

 

 

$

(50,599

)

Foreign loss before income taxes

 

 

(20

)

 

 

(58

)

Income (loss) before income taxes

 

$

3,401

 

 

$

(50,657

)

Summary of Income Tax Expense (Benefit)

Income tax expense (benefit) for the years ended December 31, 2022 and 2021 consists of the following:

 

 

 

Years ended December 31,

 

 

 

2022

 

 

2021

 

Current tax expense (benefit):

 

 

 

 

 

 

Federal

 

$

(142

)

 

$

322

 

State

 

 

450

 

 

 

274

 

Foreign

 

 

262

 

 

 

187

 

Total current tax expense (benefit)

 

 

570

 

 

 

783

 

Deferred tax expense (benefit):

 

 

 

 

 

 

Federal

 

 

(31

)

 

 

 

State

 

 

(8

)

 

 

 

Foreign

 

 

(5

)

 

 

 

Total deferred tax expense (benefit)

 

 

(44

)

 

 

 

Income tax expense (benefit)

 

$

526

 

 

$

783

 

 

Summary of Reconciliation Between Company's Effective Tax Rate and Applicable U.S. federal Statutory Income Tax Rate

A reconciliation between the Company's effective tax rate and the applicable U.S. federal statutory income tax rate for the years ended December 31, 2022 and 2021:

 

 

 

Years ended December 31,

 

 

2022

 

 

2021

 

 

Tax computed at federal statutory rate

 

 

21.0

 

%

 

21.0

 

%

State tax, net of federal tax benefit

 

 

3.0

 

%

 

(0.1

)

%

Non-controlling interests

 

 

(31.1

)

%

 

(2.1

)

%

Income (loss) from pass-through entities

 

 

 

%

 

(5.3

)

%

Permanent items

 

 

 

%

 

(1.5

)

%

TRA liability

 

 

(3.6

)

%

 

 

%

Executive compensation

 

 

3.8

 

%

 

 

%

Contingent consideration

 

 

45.4

 

%

 

(10.4

)

%

Preferred stock dividend

 

 

 

%

 

(1.5

)

%

State rate differential

 

 

22.5

 

%

 

 

%

Other

 

 

5.7

 

%

 

(0.0

)

%

Valuation allowance

 

 

(51.2

)

%

 

(1.6

)

%

Effective tax rate

 

 

15.5

 

%

 

(1.6

)

%

D
Summary of Company's Net Deferred Tax Assets The components that comprise the Company's net deferred tax assets consist of the following as of December 31, 2022 and 2021:

 

 

 

Years ended December 31,

 

 

 

2022

 

 

2021

 

Deferred tax assets:

 

 

 

 

 

 

Investment in partnership

 

$

40,827

 

 

$

28,164

 

Net operating losses

 

 

26,361

 

 

 

28,844

 

Tax receivable agreement

 

 

332

 

 

 

59

 

Interest expense

 

 

3,265

 

 

 

3,055

 

Deferred revenue

 

 

1,383

 

 

 

1,111

 

Other

 

 

279

 

 

 

379

 

Total deferred tax assets

 

 

72,447

 

 

 

61,612

 

Valuation allowance for deferred tax assets

 

 

(72,403

)

 

 

(61,592

)

Total deferred tax assets, net of valuation allowance

 

 

44

 

 

 

20

 

Deferred tax liabilities:

 

 

 

 

 

 

Property and equipment and intangible assets

 

 

 

 

 

(3

)

Other

 

 

 

 

 

(17

)

Total deferred tax liabilities

 

 

 

 

 

(20

)

Net deferred tax assets (liabilities)

 

$

44

 

 

$