Annual report pursuant to Section 13 and 15(d)

TAX EXPENSE (Tables)

v3.22.1
TAX EXPENSE (Tables)
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
The provision for income taxes consisted of the following for the years ended December 31, 2021 and 2020.
Year Ended December 31,
Current: 2021 2020
Federal 108  — 
State 860  — 
Foreign —  — 
Total current tax expense 968  — 
Year Ended December 31,
Deferred: 2021 2020
Federal 1,112  — 
State (277) — 
Foreign — 
Total deferred tax expense 835  — 
Total Tax Provision 1,803  — 
Schedule of Deferred Tax Assets and Liabilities
The components of deferred income tax assets and (liabilities) are as follows:
Year Ended December 31,
2021 2020
Deferred income tax assets:
Options expense $ —  $ 2,871 
Depreciation —  194 
Allowance for Doubtful Accounts —  291 
Accrued Expenses 58  — 
Net operating Losses 5,010  19,676 
Total 5,068  23,032 
Deferred income tax liabilities:
Fixed Assets and Intangibles (11,094) — 
Leases (96) — 
Unrealized gain on investments —  (8,658)
Total (11,190) 14,374 
Valuation allowance —  (14,374)
Net deferred tax assets (liabilities) $ (6,122) $ — 
The net deferred tax liability as of December 31, 2021 is associated with the Company's continuing operations.
Schedule of Effective Income Tax Rate Reconciliation
The reconciliation between the Company’s effective tax rate and the statutory tax rate is as follows:
Year Ended December 31,
2021 2020
Expected Income Tax  Benefit at Statutory Tax Rate, Net $ (6,385) $ (6,151)
Changes in income taxes resulting from:
State taxes (net of federal tax benefits) 9,937  (2,045)
Decrease in valuation allowance (14,375) (3,727)
Foreign tax rate differential —  — 
Gain/loss on distinguishment of debt 1,255  — 
Non-deductible 280E 5,421  2,683 
Goodwill impairment 1,296  5,572 
Debt discount 239  — 
Passthrough and managed 308  713 
RTP adjustments and other 4,107  613 
Reported income tax expense (benefit) $ 1,803  $ —