The tax effects of significant temporary differences that comprise deferred tax assets and liabilities were: For the years ended December 31, 2022 2021 Deferred tax assets: NetOperatingLoss ......................... $ 1,724 $ 415 Interest expense limitation . . . . . . . . . . . . . . . . . . . 446 — Investmentinpartnership .................... 1,178 287 TotalDeferredtaxassets .................... 3,348 702 Valuationallowance ........................ (3,348) (702) Netdeferredtaxes .......................... $ — $— The Company records a valuation allowance against federal and state deferred tax assets, after considering all of the available evidence, if it is more likely than not that these assets will not be realized. Amounts related to valuation allowances impacting the provision for incomes taxes were $3.3 million and $0.7 million for the years ended December 31, 2022 and 2021, respectively. The Company has $5.5 million of federal net operating loss carry forwards and $3.1 million of state net operating loss carry forwards. Based on the applicable expiration dates, the Company does not believe that any portion of these net operating losses will expire prior to being fully utilized. Uncertain Tax Positions For the years ended December 31, 2022 and 2021, the Company did not have any unrecognized tax benefits (“UTB”) as a result of tax positions taken during a prior period or during the current period. Interest or penalties related to the UTBs, if any, are recorded as a component of income tax expense. No interest or penalties have been recorded as a result of tax uncertainties for all periods presented. Additionally, although RGF is treated as a partnership for U.S. federal and state income taxes purposes, it is still required to file an annual U.S. Return of Partnership Income, which is subject to examination by the Internal Revenue Service (“IRS”). The statute of limitations has expired for tax years through 2018 for RGF. TRA The TRA, as described in Note 11, provides for the payment by the Company to the Members of 85% of the amount of tax benefits, if any, that the company may actually realize (or in some circumstances are deemed to realize) as a result of an increase in tax basis resulting from any future redemptions of Class B units, as described in “Note 1- Organization and Description of Business,” as well as certain other tax benefits attributable to payments made under the TRA. The annual tax benefits are computed by calculating the income taxes due, including such tax benefits, and the income taxes due without such benefits. RGF expects to benefit from the remaining 15% of any tax benefits that it may actually realize. The TRA payments are not conditioned upon any continued ownership interest in RGF. The timing and amount of aggregate payments due under the TRA may vary based on a number of factors, including the amount and timing of the taxable income the Operating Company generates each year and the applicable tax rate. As a result of the Company’s determination that future income tax benefits were not realizable at December 31, 2022, and that a triggering event (exchange) was not probable at that time, the Company determined that there were no amounts due to the Members under the TRA as of December 31, 2022. At December 31, 2022, if a TRA payout was deemed probable, the estimated maximum amount due under the TRA agreement would be approximately $43 million. This estimate is highly subjective and subject to future market dynamics and as such may not necessarily be indicative of future results. 75
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