Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.23.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Benefit of Income Taxes

For fiscal years ended December 31, 2022, and January 1, 2022, the Company recorded an income tax benefit from continuing operation of approximately $6.7 million and an income tax provision of $273,000, respectively, and an income tax provision from discontinued operations of approximately $2.2 million and $0, respectively, which consisted of the following (in $000's):

 

 

 

Fiscal Years Ended

 

 

 

December 31, 2022

 

 

January 1, 2022

 

Current tax expense:

 

 

 

 

 

 

State

 

$

32

 

 

$

75

 

Federal

 

 

45

 

 

 

 

Current tax expense

 

 

77

 

 

 

75

 

Deferred tax benefit - domestic

 

 

(4,589

)

 

 

198

 

Total (benefit) provision of income taxes

 

$

(4,512

)

 

$

273

 

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

A reconciliation of the Company's income tax benefit (provision) with the federal statutory tax rate for the fiscal years ended December 31, 2022, and January 1, 2022, respectively, is shown below:

 

 

 

Fiscal Years Ended

 

 

 

December 31, 2022

 

 

January 1, 2022

 

U.S statutory rate

 

 

21.0

%

 

 

21.0

%

Federal income tax for installment sale

 

 

0.6

%

 

 

0.0

%

State tax rate

 

 

5.5

%

 

 

4.3

%

Foreign rate differential

 

 

-0.2

%

 

 

0.2

%

Permanent differences

 

 

0.4

%

 

 

2.3

%

Change in tax rates

 

 

2.8

%

 

 

0.2

%

Benefit from CARES Act carryback claim

 

 

0.0

%

 

 

-1.2

%

Change in valuation allowance

 

 

-96.4

%

 

 

-27.5

%

Other

 

 

0.4

%

 

 

-0.9

%

 

 

 

-65.9

%

 

 

-1.6

%

Schedule of Loss Before Benefit of Income Taxes oss) before provision of income taxes was derived from the following sources for fiscal years December 31, 2022 and January 1, 2022, respectively, as shown below (in $000's):

 

 

 

Fiscal Years Ended

 

 

 

December 31, 2022

 

 

January 1, 2022

 

United States

 

$

6,717

 

 

$

(16,074

)

Canada

 

 

(237

)

 

 

(540

)

Total

 

$

6,480

 

 

$

(16,614

)

Schedule of Deferred Tax Assets and Liabilities

The components of net deferred tax assets (liabilities) as of December 31, 2022 and January 1, 2022, respectively, are as follows (in $000's):

 

 

 

December 31, 2022

 

 

January 1, 2022

 

Deferred tax assets (liabilities):

 

 

 

 

 

 

Allowance for bad debts

 

$

 

 

$

795

 

Accrued expenses

 

 

1,723

 

 

 

2,118

 

Accrued compensation

 

 

82

 

 

 

91

 

Section 174 expenses

 

 

92

 

 

 

 

Prepaid expenses

 

 

(184

)

 

 

(375

)

Net operating loss

 

 

5,494

 

 

 

4,440

 

Lease liability

 

 

39

 

 

 

25

 

Tax credits

 

 

3

 

 

 

92

 

Share-based compensation

 

 

171

 

 

 

219

 

Intangibles

 

 

(4,782

)

 

 

(5

)

Property and equipment

 

 

(483

)

 

 

(407

)

Installment sale

 

 

(2,114

)

 

 

 

Unrealized losses

 

 

305

 

 

 

148

 

Section 163(j) interest

 

 

363

 

 

 

361

 

 

 

709

 

 

 

7,502

 

Less: valuation allowance

 

 

(904

)

 

 

(7,502

)

Net deferred tax assets (liabilities)

 

$

(195

)

 

$