Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.21.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Expense

The income tax expense for the years ended December 31, 2020 and 2019 consists of the following:

 

    December 31, 2020     December 31, 2019  
Foreign                
Current   $     $ 48,187  
Deferred     (36,443)       653,790  
Change in valuation allowance     36,443       (652,679 )
U.S. Federal                
Current            
Deferred     5,765,837       (4,683,141 )
Change in valuation allowance     (5,815,197 )     4,662,699  
State and local                
Current            
Deferred     (103,357 )     (272,656 )
Change in valuation allowance     159,222       317,526  
    $ 6,505     $ 73,726  
Schedule of Effective Income Tax Rate Reconciliation

The income tax expense using statutory U.S. federal tax rate of 21% is reconciled to the Company’s effective tax rate as of December 31, 2020 and 2019 is as follows:

 

    2020     2019  
Computed “expected” income tax benefit   $ (4,325,270 )   $ (3,647,623 )
State income taxes, net of federal benefit     (57,543 )     (367,974 )
Non-controlling interest           185,031  
Prior year true-ups other deferred tax balances     24,549       (323,763 )
Permanent items     2,500,281       37,480  
Foreign tax expense           48,187  
Rate change     (142,085 )      
Other     (248,955 )     59,421  
Adjustment to NOLs due to Merger     8,350,360        
Change in valuation allowance     (6,094,832 )     4,082,967  
    $ 6,505     $ 73,726  

Summary of Major Components of Deferred Tax Assets

Major components of deferred tax assets at December 31, 2020 and 2019 were:

    2020     2019  
Net operating loss carryforwards   $ 6,802,404     $ 13,099,412  
Capital loss carryforwards     369,447        
Fixed assets and intangibles     1,118,850       1,058,814  
Section 1231 loss carryforwards     39,491       103,230  
Charitable contribution carryforwards     12,474       23,731  
Section 163(j) limitation     789,007       648,074  
Other           45,801  
Restaurant startup expenses     5,293        
Accrued expenses     915,177       946,040  
Deferred occupancy liabilities           37,044  
Contract liabilities     226,671       240,333  
Total deferred tax assets     10,278,814       16,202,479  
                 
Deferred occupancy liabilities     (38,390 )      
Investments     (202,307 )     (328,825 )
Other     (30,833 )      
Total deferred tax liabilities     (271,530 )     (328,825 )
                 
Net deferred tax assets     10,007,284       15,873,654  
Valuation allowance     (10,116,093 )     (15,975,958 )
    $ (108,809 )   $ (102,304 )