Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.21.1
Income Taxes (Tables)
12 Months Ended
Jan. 02, 2021
Income Tax Disclosure [Abstract]  
Schedule of Benefit of Income Taxes

For fiscal year 2020 and 2019, we recorded an income tax benefit of $427 and $3,197, respectively, which consisted of the following:

 

 

 

Fiscal Years Ended

 

 

 

January 2, 2021

 

 

December 28, 2019

 

Current tax expense:

 

 

 

 

 

 

 

 

State

 

$

(46

)

 

$

(80

)

Federal

 

 

203

 

 

 

 

Current tax expense

 

$

157

 

 

$

(80

)

Deferred tax benefit - domestic

 

 

270

 

 

 

3,277

 

Benefit of income taxes

 

$

427

 

 

$

3,197

 

Schedule of Reconciliation of Our Benefit of Income Taxes with the Federal Statutory Tax Rate

A reconciliation of our benefit of income taxes with the federal statutory tax rate for fiscal years 2020 and 2019 is shown below:

 

 

 

Fiscal Years Ended

 

 

 

January 2, 2021

 

 

December 28, 2019

 

U.S statutory rate

 

 

21.0

%

 

 

21.0

%

State tax rate

 

 

7.5

%

 

 

1.8

%

Foreign rate differential

 

 

0.4

%

 

 

0.2

%

Permanent differences

 

 

-0.1

%

 

 

-0.1

%

Change in valuation allowance

 

 

-24.5

%

 

 

-0.7

%

Other

 

 

0.6

%

 

 

-0.6

%

 

 

 

4.9

%

 

 

21.6

%

Schedule of Loss Before Benefit of Income Taxes

Loss before benefit of income taxes was derived from the following sources for fiscal years 2020 and 2019 as shown below:

 

 

 

Fiscal Years Ended

 

 

 

January 2, 2021

 

 

December 28, 2019

 

United States

 

$

(8,270

)

 

$

(14,497

)

Canada

 

 

(655

)

 

 

(664

)

 

 

$

(8,925

)

 

$

(15,161

)

Schedule of Deferred Tax Assets and Liabilities

The components of net deferred tax assets (liabilities) as of January 2, 2021 and December 28, 2019, are as follows:

 

 

 

January 2, 2021

 

 

December 28, 2019

 

Deferred tax assets (liabilities):

 

 

 

 

 

 

 

 

Allowance for bad debts

 

$

823

 

 

$

802

 

Accrued expenses

 

 

1,769

 

 

 

1,623

 

Accrued compensation

 

 

76

 

 

 

62

 

Prepaid expenses

 

 

(304

)

 

 

(93

)

Net operating loss

 

 

3,477

 

 

 

2,045

 

Lease liability

 

 

35

 

 

 

504

 

Tax credits

 

 

290

 

 

 

256

 

Share-based compensation

 

 

176

 

 

 

125

 

Intangibles

 

 

(3,717

)

 

 

(4,585

)

Property and equipment

 

 

(214

)

 

 

(652

)

Unrealized losses (gains)

 

 

140

 

 

 

141

 

Section 163(j) interest

 

 

387

 

 

 

288

 

 

 

 

2,938

 

 

 

516

 

Less: valuation allowance

 

 

(2,938

)

 

 

(786

)

Net deferred tax assets (liabilities)

 

$

 

 

$

(270

)