Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.22.1
Income Taxes (Tables)
12 Months Ended
Jan. 01, 2022
Income Tax Disclosure [Abstract]  
Schedule of Benefit of Income Taxes

For fiscal years ended January 1, 2022, and January 2, 2021, the Company recorded an income tax provision of approximately $273,000, and an income tax benefit of approximately $427,000, respectively, which consisted of the following (in $000's):

 

 

 

Fiscal Years Ended

 

 

 

January 1, 2022

 

 

January 2, 2021

 

Current tax expense:

 

 

 

 

 

 

State

 

$

(75

)

 

$

(46

)

Federal

 

 

 

 

 

203

 

Current tax expense

 

 

(75

)

 

 

157

 

Deferred tax benefit - domestic

 

 

(198

)

 

 

270

 

Total benefit (provision) of income taxes

 

$

(273

)

 

$

427

 

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 January 1, 2022, and January 2, 2021, respectively, is shown below:

 

 

 

Fiscal Years Ended

 

 

 

January 1, 2022

 

 

January 2, 2021

 

U.S statutory rate

 

 

21.0

%

 

 

21.0

%

State tax rate

 

 

4.3

%

 

 

7.5

%

Foreign rate differential

 

 

0.2

%

 

 

0.4

%

Permanent differences

 

 

2.3

%

 

 

-0.1

%

Change in tax rates

 

 

0.2

%

 

 

-0.8

%

Benefit from CARES Act carryback claim

 

 

-1.2

%

 

 

0.8

%

Change in valuation allowance

 

 

-27.5

%

 

 

-24.5

%

Other

 

 

-0.9

%

 

 

0.6

%

 

 

 

-1.6

%

 

 

4.9

%

Schedule of Loss Before Benefit of Income Taxes

Loss before benefit (provision) of income taxes was derived from the following sources for fiscal years January 1, 2022 and January 2, 2021, respectively, as shown below (in $000's):

 

 

 

Fiscal Years Ended

 

 

 

January 1, 2022

 

 

January 2, 2021

 

United States

 

$

(16,074

)

 

$

(8,270

)

Canada

 

 

(540

)

 

 

(655

)

Total

 

$

(16,614

)

 

$

(8,925

)

Schedule of Deferred Tax Assets and Liabilities

The components of net deferred tax assets (liabilities) as of January 1, 2022 and January 2, 2021, respectively, are as follows (in $000's):

 

 

 

January 1, 2022

 

 

January 2, 2021

 

Deferred tax assets (liabilities):

 

 

 

 

 

 

Allowance for bad debts

 

$

795

 

 

$

823

 

Accrued expenses

 

 

2,118

 

 

 

1,769

 

Accrued compensation

 

 

91

 

 

 

76

 

Prepaid expenses

 

 

(375

)

 

 

(304

)

Net operating loss

 

 

4,440

 

 

 

3,477

 

Lease liability

 

 

25

 

 

 

35

 

Tax credits

 

 

92

 

 

 

290

 

Share-based compensation

 

 

219

 

 

 

176

 

Intangibles

 

 

(5

)

 

 

(3,717

)

Property and equipment

 

 

(407

)

 

 

(214

)

Unrealized losses (gains)

 

 

148

 

 

 

140

 

Section 163(j) interest

 

 

361

 

 

 

387

 

 

 

 

7,502

 

 

 

2,938

 

Less: valuation allowance

 

 

(7,502

)

 

 

(2,938

)

Net deferred tax assets (liabilities)

 

$

 

 

$