Annual report pursuant to Section 13 and 15(d)

TAX EXPENSE (Tables)

v3.23.1
TAX EXPENSE (Tables)
 12 Months Ended
Dec. 31, 2022
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, 2022 and 2021.
Year Ended December 31,
2022 2021
Current:
Federal $ 3,339  $ 107 
State —  860 
Total Current Tax Expense 3,339  967 
Deferred:
Federal $ 1,073  $ 1,112 
State (7,196) (277)
Total Deferred Tax Expense (6,123) 835 
TOTAL TAX PROVISION $ (2,784) $ 1,802 
Schedule of Deferred Tax Assets and Liabilities
The components of deferred income tax assets and (liabilities) are as follows:
Year Ended December 31,
2022 2021
Deferred Income Tax Assets:
Fixed Assets $ 208  $ — 
Accrued Expenses 22  58 
Net Operating Losses 4,030  5,010 
Total 4,260  5,068 
Deferred Income Tax Liabilities:
Fixed Assets and Intangibles —  (11,094)
Leases (134) (96)
Total (134) (11,190)
Valuation Allowance (4,126) — 
Net Deferred Tax Assets (Liabilities) $ —  $ (6,122)
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,
2022 2021
Expected Income Tax  Benefit at Statutory Tax Rate, Net $ (41,039) $ (6,385)
Changes in Income Taxes Resulting From:
State Taxes (Net of Federal Tax Benefits) (10,036) 9,937 
Decrease in Valuation Allowance 4,126  (14,375)
Gain/Loss on Extinguishment of Debt —  1,255 
Non-Deductible 280E 5,339  5,421 
Goodwill impairment 9,355  1,296 
Debt Discount 274  239 
Pass through and Managed 1,725  308 
Disposal of Depreciable Assets 2,820  — 
Impairment of Intangibles 25,024  — 
Prior Year Adjustments and Other (372) 4,106 
Reported Income Tax Expense (Benefit) $ (2,784) $ 1,802