Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2024 |
|---|
| Income Taxes |
|
| Schedule of income tax expense |
For the years ended December 31, 2024 and 2023, income tax expense consisted of:
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2024 |
|
2023 |
Current |
|
|
|
|
|
|
U.S. Federal |
|
$ |
369 |
|
$ |
1,021 |
U.S. State |
|
|
— |
|
|
669 |
Foreign |
|
|
— |
|
|
— |
Deferred |
|
|
|
|
|
|
U.S. Federal |
|
|
2,664 |
|
|
(5,411) |
U.S. State |
|
|
1,692 |
|
|
382 |
Foreign |
|
|
— |
|
|
— |
Provision for (recovery of) income taxes |
|
$ |
4,725 |
|
$ |
(3,339) |
|
| Schedule of reconciliation of effective tax rates |
A reconciliation of the U.S. statutory income tax rate to the Company’s effective tax rate consists of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2024 |
|
2023 |
Loss from operations before income taxes |
|
$ |
(94,945) |
|
|
|
$ |
(65,723) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax loss at statutory rate |
|
|
(19,938) |
|
21.00% |
|
|
(13,802) |
|
21.00% |
U.S. state and local taxes |
|
|
1,692 |
|
(1.78%) |
|
|
1,051 |
|
(1.60%) |
IRC Section 280E |
|
|
— |
|
0.00% |
|
|
5,667 |
|
(8.62%) |
Canadian non-capital losses |
|
|
— |
|
0.00% |
|
|
(2,549) |
|
3.88% |
Uncertain Tax Positions |
|
|
9,578 |
|
(10.09%) |
|
|
— |
|
0.00% |
Other permanent differences |
|
|
(3,848) |
|
4.05% |
|
|
(2,870) |
|
4.37% |
Change in valuation allowance |
|
|
24,832 |
|
(26.15%) |
|
|
10,201 |
|
(15.52%) |
Effects of Rates Different than Statutory |
|
|
(1,116) |
|
1.18% |
|
|
(842) |
|
1.28% |
Other |
|
|
(6,475) |
|
6.82% |
|
|
(195) |
|
0.30% |
Provision for (recovery of) income taxes |
|
$ |
4,725 |
|
(4.97%) |
|
$ |
(3,339) |
|
5.09% |
|
| Schedule of components of deferred tax assets and liabilities |
As of December 31, 2024 and 2023, the components of deferred tax assets and liabilities were as follows:
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2024 |
|
2023 |
Deferred tax assets |
|
|
|
|
|
|
Allowance for doubtful accounts |
|
$ |
112 |
|
$ |
2,075 |
Intangible assets |
|
|
2,453 |
|
|
— |
Other impairment |
|
|
301 |
|
|
— |
Lease liabilities |
|
|
4,460 |
|
|
4,894 |
Acquisition costs |
|
|
— |
|
|
532 |
Accrued expenses |
|
|
262 |
|
|
131 |
Interest expense carryforward |
|
|
15,517 |
|
|
10,780 |
Net operating loss carryforwards |
|
|
18,368 |
|
|
11,368 |
Capital loss carryforwards |
|
|
7,741 |
|
|
8,085 |
Non-capital loss carryforwards |
|
|
19,505 |
|
|
20,989 |
Investment in subsidiary |
|
|
117 |
|
|
117 |
Restricted stock |
|
|
390 |
|
|
465 |
Deferred rent |
|
|
11,057 |
|
|
9,092 |
Unrealized loss |
|
|
1,829 |
|
|
1,975 |
Inventory reserve |
|
|
530 |
|
|
892 |
Restricted interest and financing expenses |
|
|
5,199 |
|
|
— |
Other |
|
|
395 |
|
|
472 |
Total deferred tax assets |
|
|
88,236 |
|
|
71,867 |
Less: Valuation allowance |
|
|
(79,134) |
|
|
(49,486) |
Net deferred tax assets |
|
$ |
9,102 |
|
$ |
22,381 |
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2024 |
|
2023 |
Deferred tax liabilities |
|
|
|
|
|
|
|
Fixed assets |
|
$ |
(6,066) |
|
$ |
(9,370) |
|
Intangible assets |
|
|
— |
|
|
(5,107) |
|
Right-of-use asset |
|
|
(3,733) |
|
|
(4,247) |
|
Total deferred tax liabilities |
|
|
(9,799) |
|
|
(18,724) |
|
|
|
|
|
|
|
|
|
Net deferred tax (liability) asset |
|
$ |
(697) |
|
$ |
3,657 |
|
|
| Schedule of Unrecognized Tax Benefits |
The aggregate changes in the gross unrecognized tax benefits related to uncertain tax positions were as follows (in thousands):
|
|
|
|
Balance at December 31, 2023 |
|
$ |
— |
Income tax additions based on tax positions related to current year |
|
|
96,949 |
Income tax additions based on tax positions related to the prior years |
|
|
975,835 |
Settlements |
|
|
— |
Balance at December 31, 2024 |
|
$ |
1,072,784 |
|