Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2022 |
|---|
| Income Taxes |
|
| Schedule of income tax expense and effective tax rates |
For the years ended December 31, 2022 and 2021, income tax expense consisted of:
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2022 |
|
2021 |
Current |
|
|
|
|
|
|
U.S. Federal |
|
$ |
1,550 |
|
$ |
(39) |
U.S. State |
|
|
167 |
|
|
— |
Foreign |
|
|
— |
|
|
— |
Deferred |
|
|
|
|
|
|
U.S. Federal |
|
|
3,260 |
|
|
(9,236) |
U.S. State |
|
|
(1,971) |
|
|
(4,628) |
Foreign |
|
|
— |
|
|
— |
Provision for (recovery of) income taxes |
|
$ |
3,006 |
|
$ |
(13,903) |
|
| Schedule of income tax expense and 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, |
|
|
2022 |
|
2021 |
Loss from operations before income taxes |
|
$ |
(104,458) |
|
|
$ |
(49,029) |
|
|
|
|
|
|
|
|
|
|
Pre-tax loss at statutory rate |
|
|
(21,978) |
21.04% |
|
|
(10,356) |
21.12% |
U.S. state and local taxes |
|
|
(1,839) |
1.76% |
|
|
(1,024) |
2.09% |
IRC Section 280E |
|
|
6,704 |
(6.42%) |
|
|
4,133 |
(8.43%) |
Other permanent differences |
|
|
(2,041) |
1.95% |
|
|
— |
0.00% |
Change in net operating losses |
|
|
1,170 |
(1.12%) |
|
|
— |
0.00% |
Goodwill impairment |
|
|
8,695 |
(8.32%) |
|
|
2,198 |
(4.48%) |
Other impairment |
|
|
37 |
(0.04%) |
|
|
(2,866) |
5.85% |
Change in fair value of warrants |
|
|
(1,005) |
0.96% |
|
|
(1,506) |
3.07% |
Share-based compensation |
|
|
518 |
(0.50%) |
|
|
888 |
(1.81%) |
Change in valuation allowance |
|
|
24,918 |
(23.85%) |
|
|
1,022 |
(2.08%) |
Return to provision and other |
|
|
(311) |
0.30% |
|
|
1,080 |
(2.20%) |
Tax rate changes |
|
|
(595) |
0.57% |
|
|
(7,492) |
15.28% |
Canadian non-capital losses |
|
|
(11,805) |
11.30% |
|
|
— |
0.00% |
Other |
|
|
538 |
(0.52%) |
|
|
20 |
(0.04%) |
Provision for (recovery of) income taxes |
|
$ |
3,006 |
(2.89%) |
|
$ |
(13,903) |
28.37% |
|
| Schedule of components of deferred tax assets and liabilities |
At December 31, 2022 and 2021, the components of deferred tax assets and liabilities were as follows:
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2022 |
|
2021 |
Allowance for doubtful accounts |
|
$ |
1,651 |
|
$ |
1,287 |
Lease liabilities |
|
|
1,470 |
|
|
960 |
Acquisition costs |
|
|
497 |
|
|
697 |
Fixed assets |
|
|
(10,572) |
|
|
(4,264) |
Accrued payroll |
|
|
— |
|
|
361 |
Other |
|
|
— |
|
|
290 |
Interest expense carryforward |
|
|
7,332 |
|
|
5,023 |
Net operating loss carryforwards |
|
|
12,296 |
|
|
24,436 |
Capital loss carryforwards |
|
|
8,174 |
|
|
9,177 |
Non-capital loss carryforwards |
|
|
11,805 |
|
|
— |
Valuation allowance |
|
|
(34,230) |
|
|
(29,368) |
Deferred tax asset recognized |
|
|
— |
|
|
8,599 |
Intangible assets |
|
|
(8,390) |
|
|
(5,893) |
Goodwill |
|
|
(321) |
|
|
(228) |
Investment in subsidiary |
|
|
117 |
|
|
(2,708) |
Right of use asset |
|
|
(1,219) |
|
|
274 |
Restricted stock |
|
|
1,157 |
|
|
— |
Deferred rent |
|
|
8,340 |
|
|
— |
Other |
|
|
520 |
|
|
(129) |
Net deferred tax liability |
|
$ |
(1,373) |
|
$ |
(85) |
|