Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.22.4
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2022
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, 2022 and 2021 were as follows:
Year ended December 31,
2022 2021
U.S federal taxes at the statutory rate 21.0  % 21.0  %
State taxes net of federal benefit 12.8  % 16.5  %
Section 280E adjustment 11.6  % 14.7  %
Stock-based compensation 2.2  % 10.5  %
FIN 48 reserve 19.5  % —  %
Return to Provision adjustments (48.7) % (19.8) %
Other 8.2  % 0.9  %
Valuation allowance 2.0  % 19.5  %
    Effective tax rate 28.6  % 63.3  %
Schedule of Deferred Tax Assets
The income tax effect of the Company’s loss carryforwards and temporary differences at December 31, 2022 and 2021 were as follows:
Year ended December 31,
2022 2021
Deferred tax assets:
Net operating loss carryforwards $ 6,947  6,981 
Allowance for doubtful accounts 256  11,810 
Stock compensation 2,557  2,557 
Loss on equity investments 8,602  8,633 
Goodwill write-offs 1,188  1,263 
Change in fair value of investments 616  599 
Lease payments 525  171 
Reserves 225  148 
   Other 95  — 
Deferred tax liabilities:
Depreciation (4,758) (2,520)
Real estate revenue (500) (1,000)
Net deferred tax asset 15,753  28,642 
Valuation allowance (15,753) (28,642)
      Total $ —  $ — 
Schedule of Unrecognized Tax Benefits Roll Forward
The Company's gross unrecognized tax benefits for the years ended December 31, 2022 and 2021 were as follows (in thousands):
Year ended December 31,
2022 2021
Balance at January 1, $ —  $ — 
Additions based on tax positions related to prior years 4,014  — 
Balance at December 31, $ 4,014  $ —