Annual report [Section 13 and 15(d), not S-K Item 405]

INCOME TAXES (Tables)

v3.25.0.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Reconciliation of Income Taxes
Reconciliations of the Company’s effective tax rates and the statutory tax rate for the years ended December 31, 2024 and 2023 were as follows:
Year ended December 31,
2024 2023
U.S federal taxes at the statutory rate 21.0  % 21.0  %
State taxes net of federal benefit (9.9) % (4.2) %
Section 280E adjustment (240.4) % (49.3) %
Other permanent non-deductible expenses (27.7) % (6.1) %
Stock-based compensation (3.5) % (0.7) %
 Non-cash interest (1.5) % (9.4) %
FIN 48 reserve (2.7) % (28.1) %
Return to provision adjustments 3.1  % 45.9  %
Other 3.5  % (1.2) %
Valuation allowance 37.6  % (96.9) %
    Effective tax rate (220.5) % (129.0) %
Schedule of Deferred Tax Assets
The income tax effect of the Company’s loss carryforwards and temporary differences at December 31, 2024 and 2023 were as follows:
Year ended December 31,
2024 2023
Deferred tax assets:
Net operating loss carryforwards $ 12,690  14,693 
Allowance for doubtful accounts 68  207 
Stock-based compensation 2,333  2,434 
Loss on equity investments 8,025  8,094 
Goodwill write-offs —  115 
Change in fair value of investments 247  229 
Lease payments 2,674  2,621 
Accruals and reserves 169  484 
   Other 889  448 
Deferred tax liabilities:
Depreciation (6,047) (6,925)
Goodwill write-offs (303) — 
Real estate revenue (2,613) (2,477)
Net deferred tax asset 18,132  19,923 
Valuation allowance (18,132) (19,923)
      Total $ —  $ — 
Schedule of Unrecognized Tax Benefits Roll Forward
The Company's gross unrecognized tax benefits for the years ended December 31, 2024 and 2023 were as follows (in thousands):
Year ended December 31,
2024 2023
Balance at January 1, $ 5,650  $ 4,014 
Additions based on tax positions related to prior years 3  1,636 
Reductions due to statute of limitations lapse (397) — 
Balance at December 31, $ 5,256  $ 5,650