Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.23.2
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
SCHEDULE OF INCOME TAX EXPENSE

The income tax expense consists of the following:

 

(in thousands)  

December 31,

2022

   

December 31,

2021

 
Foreign                
Current   $     $ 38  
Deferred           36  
Change in valuation allowance           (36 )
U.S. Federal                
Current            
Deferred     (1,656 )     575  
Change in valuation allowance     1,616       (627 )
State and local                
Current            
Deferred     (355 )     61  
Change in valuation allowance     437       71  
Income tax expense   $ 42     $ 118  
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION

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

 

(in thousands)  

December 31,

2022

   

December 31,

2021

 
Computed “expected” income tax benefit   $ (479 )   $ (580 )
Change in valuation allowance     2,238       (593 )
Permanent items     (1,295 )     25  
State income taxes, net of federal benefit     (399 )     61  
Prior year true-ups and other deferred tax balances     (116 )     1,329  
Rate change     74       (169 )
Other     19     45  
Income tax expense   $ 42     $ 118  
SUMMARY OF MAJOR COMPONENTS OF DEFERRED TAX ASSETS

SUMMARY OF MAJOR COMPONENTS OF DEFERRED TAX ASSETS

(in thousands)   December 31, 2022     December 31, 2021  
Net operating loss carryforwards   $ 8,033     $ 6,582  
Accrued expenses     1,049       733  
Section 163(j) limitation     923       848  
Fixed assets and intangibles     809       750  
ROU asset/liability     464        
Capital loss carryforwards     394       387  
Restaurant start-up expenses     74       77  
Contract liabilities     17       198  
Deferred occupancy liabilities     8        
Charitable contribution carryforwards     4       7  
Credits     176       153  
Total deferred tax assets     11,951       9,735  
                 
Investments     (382 )     (323 )
Deferred occupancy liabilities           (21 )
Other         (18 )
Total deferred tax liabilities     (382 )     (362 )
                 
Net deferred tax assets     11,569       9,373  
Valuation allowance     (11,761 )     (9,523 )
Total   $ (192 )   $ (150 )