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 Tax Expense (Benefit) |
Details of the Company’s income tax expense are as follows:
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Year Ended December 31, |
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2025 |
|
2024 |
|
2023 |
| Current tax expense: |
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|
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| Federal |
$ |
31,362 |
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|
$ |
32,454 |
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|
$ |
27,303 |
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| State |
3,058 |
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|
3,294 |
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|
3,608 |
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|
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34,420 |
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35,748 |
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30,911 |
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|
| Deferred tax benefit: |
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|
|
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| Federal |
503 |
|
|
(1,873) |
|
|
2,281 |
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| State |
(131) |
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|
(2,634) |
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|
(1,386) |
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| Foreign |
(6,426) |
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|
(3,241) |
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|
(5,554) |
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|
(6,054) |
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|
(7,748) |
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|
(4,659) |
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| Change in valuation allowance |
6,622 |
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|
3,630 |
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|
5,554 |
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| Total income tax expense |
$ |
34,988 |
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|
$ |
31,630 |
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|
$ |
31,806 |
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| Schedule of Income (Loss), Income Tax (Expense), and Effective Tax Rate |
The differences between the income tax expense and the expected income taxes based on the statutory tax rate applied to pre-tax loss are as follows:
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Year Ended December 31, |
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2025 |
|
2024 |
|
2023 |
Loss before income taxes |
$ |
(33,603) |
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|
|
$ |
(17,147) |
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|
$ |
(33,296) |
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| U.S. federal statutory tax rate |
(7,057) |
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21.0 |
% |
|
(3,601) |
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21.0 |
% |
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(6,992) |
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|
21.0 |
% |
State and local income taxes, net of federal income tax effect (1)
|
1,161 |
|
|
(3.5) |
% |
|
(711) |
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4.1 |
% |
|
(600) |
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|
1.8 |
% |
| Foreign tax effects |
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| Canada |
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| Statutory tax rate difference between Canada and U.S. |
(9,349) |
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|
27.8 |
% |
|
(5,088) |
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29.7 |
% |
|
(4,576) |
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|
13.7 |
% |
| Changes in valuation allowances |
6,426 |
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|
(19.1) |
% |
|
4,560 |
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|
(26.6) |
% |
|
5,554 |
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|
(16.7) |
% |
| Deemed interest income |
869 |
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|
(2.6) |
% |
|
1,641 |
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(9.6) |
% |
|
842 |
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(2.5) |
% |
| Gain on fair value derivative |
1,374 |
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(4.1) |
% |
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(1,694) |
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|
9.9 |
% |
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(2,550) |
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7.7 |
% |
| Other |
680 |
|
|
(2.0) |
% |
|
581 |
|
|
(3.4) |
% |
|
730 |
|
|
(2.2) |
% |
| Switzerland |
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| Changes in valuation allowances |
— |
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|
0.0 |
% |
|
(1,050) |
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|
6.1 |
% |
|
— |
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|
0.0 |
% |
| Write-off foreign NOL |
— |
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|
0.0 |
% |
|
1,050 |
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(6.1) |
% |
|
— |
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|
0.0 |
% |
| Other |
— |
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|
0.0 |
% |
|
(930) |
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5.4 |
% |
|
114 |
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|
(0.3) |
% |
| Other foreign jurisdictions |
— |
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|
0.0 |
% |
|
509 |
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(3.0) |
% |
|
— |
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0.0 |
% |
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| Nontaxable or nondeductible items |
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| Gain on fair value of derivative |
1,068 |
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(3.2) |
% |
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(1,318) |
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7.7 |
% |
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(2,014) |
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6.0 |
% |
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| IRC Section 280E disallowed expenses |
— |
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0.0 |
% |
|
— |
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|
0.0 |
% |
|
10,862 |
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(32.6) |
% |
| Other |
(82) |
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|
0.2 |
% |
|
929 |
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(5.4) |
% |
|
2,608 |
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|
(7.8) |
% |
| Changes in unrecognized tax benefits |
39,495 |
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|
(117.5) |
% |
|
35,452 |
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(206.8) |
% |
|
24,888 |
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(74.7) |
% |
| Return to provision |
403 |
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(1.2) |
% |
|
1,300 |
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(7.6) |
% |
|
2,940 |
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(8.8) |
% |
| Total income tax expense |
$ |
34,988 |
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|
(104.1) |
% |
|
$ |
31,630 |
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|
(184.5) |
% |
|
$ |
31,806 |
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|
(95.5) |
% |
(1) State taxes in Illinois, Pennsylvania and Virginia for 2025; California, Illinois, Pennsylvania and Virginia for 2024 and Illinois, Pennsylvania and Virginia for 2023 make up the majority (greater than 50%) of the tax effect in this category.
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| Schedule of Incomes Taxes Paid |
The amounts of cash income taxes paid/(received) by the Company were as follows:
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Year Ended December 31, |
|
2025 |
|
2024 |
|
2023 |
| U.S. federal |
$ |
1,679 |
|
|
$ |
(173) |
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|
$ |
60 |
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| U.S. state and local |
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Philadelphia |
— |
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(720) |
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|
87 |
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| Pennsylvania |
243 |
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(1,874) |
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|
912 |
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| Florida |
(26) |
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(426) |
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|
80 |
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| Virginia |
831 |
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|
425 |
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|
360 |
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| Illinois |
(397) |
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(1,696) |
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|
1,276 |
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Other state and local |
123 |
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|
75 |
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|
5 |
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| Total income taxes paid/(received), net |
$ |
2,453 |
|
|
$ |
(4,389) |
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|
$ |
2,780 |
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| Schedule of Deferred Tax Assets and Liabilities |
Year-end deferred tax assets and liabilities were due to the following:
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Year Ended December 31, |
|
2025 |
|
2024 |
| Deferred tax assets: |
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| Lease liability |
$ |
19,207 |
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|
$ |
19,300 |
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| Net operating losses |
20,717 |
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|
20,329 |
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Interest carryforward |
13,242 |
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|
7,726 |
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| Property and equipment |
1,245 |
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|
2,260 |
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| Other deferred tax assets |
3,597 |
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|
2,998 |
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| Valuation allowance |
(33,202) |
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|
(26,580) |
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|
$ |
24,806 |
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|
$ |
26,033 |
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| Deferred tax liabilities: |
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| Right-of-use assets |
$ |
(17,218) |
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$ |
(17,528) |
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| Intangible assets |
(4,491) |
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(4,705) |
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| Other deferred tax liabilities |
(243) |
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|
(378) |
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|
$ |
(21,952) |
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$ |
(22,611) |
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Net deferred tax asset (liabilities) (1)
|
$ |
2,854 |
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|
$ |
3,422 |
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(1) Net deferred tax assets are included in other non-current assets while net deferred tax liabilities are included in other non-current liabilities in the consolidated balance sheets.
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| Schedule of Unrecognized Tax Benefits Roll Forward |
A reconciliation of the beginning and ending amount of unrecognized tax benefits (exclusive of interest and penalties) are as follows:
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Balance at January 1, 2024 |
$ |
104,625 |
|
| Reductions based on lapse of statute of limitations |
(1,692) |
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| Additions based on tax positions related to the current year |
25,041 |
|
Additions based on tax positions related to the prior year |
11,631 |
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|
Balance at December 31, 2024 |
$ |
139,605 |
|
| Reductions based on lapse of statute of limitations |
(4,350) |
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| Additions based on tax positions related to the current year |
30,300 |
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Additions based on tax positions related to the prior year |
1,869 |
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| Balance at December 31, 2025 |
$ |
167,424 |
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