v3.23.1
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Summary of income tax provision
The income tax provision for the years ended December 31, 2022 and 2021 consists of the following (in thousands):
 
    
For the Year Ended

December 31,
 
    
    2022    
    
    2021    
 
Current:
                 
Federal
   $ —        $ —    
State
     —          1  
    
 
 
    
 
 
 
Total
     —          1  
    
 
 
    
 
 
 
Deferred:
                 
Federal
     (273 )       371  
State
     (507 )       803  
    
 
 
    
 
 
 
Total
   $ (780 )     $ 1,174  
    
 
 
    
 
 
 
Income tax (benefit) expense
   $ (780 )     $ 1,175  
    
 
 
    
 
 
 
Summary of company's effective tax rate
A reconciliation of the federal income tax rate to the Company’s effective tax rate at December 31, 2022 and 2021 are as follows:
 
    
For the Year Ended

December 31,
 
    
    2022    
   
    2021    
 
U.S. federal statutory tax rate
     21.0 %      21.0 % 
State income taxes, net of federal benefit
     0.8 %      57.2 % 
PPP Loan
     0.0 %      (42.9 )% 
Return to provision
     0.0 %      10.5 % 
Transaction costs
     1.2 %      —   % 
Other adjustments
     0.1 %      1.8 % 
Change in valuation allowance
     -21.6 %      58.3 % 
    
 
 
   
 
 
 
Effective tax rate
     1.5 %      105.9 % 
    
 
 
   
 
 
 
Summary of net deferred tax assets (liability)
The tax effects of significant items comprising the Company’s deferred taxes as of December 31, 2022 and 2021 are as follows (in thousands):
 
    
For the Year Ended

December 31,
 
    
    2022    
    
    2021    
 
Deferred Tax Assets:
                 
Net operating loss and other tax attributes carryforwards
     17,041        4,950  
Accrued expenses
     150        343  
163(j) interest limitation
     2,489        166  
Amortization
     1,433        58  
Transaction costs
     2,108        —    
Lease liabilities
     5,886        —    
Other deferred tax assets
     735        231  
    
 
 
    
 
 
 
       29,842        5,748  
    
 
 
    
 
 
 
 
 
    
For the Year Ended

December 31,
 
    
    2022    
    
    2021    
 
Deferred Tax Liabilities:
                 
Depreciation
     (66 )       (73 ) 
Unrealized gain (loss) on joint venture
     (998 )       (2,541 ) 
Right of use assets
     (5,239 )       —    
Debt
     (696 )       —    
Other deferred tax liabilities
     —          (26 ) 
    
 
 
    
 
 
 
       (6,999 )       (2,640 ) 
    
 
 
    
 
 
 
Valuation allowance
     (23,237 )       (4,282 ) 
    
 
 
    
 
 
 
Net deferred tax liability
     (394 )       (1,174 )