Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.22.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
SCHEDULE OF INCOME TAX EXPENSE

The income tax expense consists of the following:

 

(in thousands)   2021     2020  
Foreign                
Current   $ 38     $ —  
Deferred     36       (36 )
Change in valuation allowance     (36 )     36  
U.S. Federal                
Current     —       —  
Deferred     575       5,766  
Change in valuation allowance     (627 )     (5,815 )
State and local                
Current     —       —  
Deferred     61       (103 )
Change in valuation allowance     71       159  
Income tax expense   $ 118     $ 7  
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)   2021     2020  
Computed “expected” income tax benefit   $ (580 )   $ (4,325 )
State income taxes, net of federal benefit     61       (57 )
Prior year true-ups and other deferred tax balances     1,329       25  
Permanent items     25       2,500  
Rate change     (169 )     (142 )
Other     45       (249 )
Adjustment to NOLs due to Merger     —       8,350  
Change in valuation allowance     (593 )     (6,095 )
Income tax expense    $ 118     $ 7  
SUMMARY OF MAJOR COMPONENTS OF DEFERRED TAX ASSETS

 

(in thousands)   December 31, 2021     December 31, 2020  
Net operating loss carryforwards   $ 6,582     $ 6,802  
Capital loss carryforwards     387       369  
Fixed assets and intangibles     750       1,119  
Section 1231 loss carryforwards     —       40  
Charitable contribution carryforwards     7       13  
Section 163(j) limitation     848       789  
Other     —       —  
Restaurant start-up expenses     77       5  
Accrued expenses     733       915  
Credits     153       —  
Contract liabilities     198       227  
Total deferred tax assets     9,735       10,279  
                 
Deferred occupancy liabilities     (21 )     (39 )
Investments     (323 )     (202 )
Other     (18 )     (31 )
Total deferred tax liabilities     (362 )     (272 )
                 
Net deferred tax assets     9,373       10,007  
Valuation allowance     (9,523 )     (10,116 )
 Total   $ (150 )   $ (109 )