Income Taxes (Tables) - Staffing 360 Solutions, Inc. [Member]
|
12 Months Ended |
Dec. 30, 2023 |
|---|
| Income Taxes (Tables) [Line Items] |
|
| Schedule of Components of (Loss) Income Before Provision for Income Taxes |
The components of loss before provision for income taxes for Fiscal 2023 and Fiscal 2022, are as follows:
|
|
|
December 30,
2023
|
|
December 31,
2022
|
|
Domestic
|
|
$
|
(40,628 |
)
|
|
$
|
(9,543 |
)
|
|
Foreign
|
|
|
14,891 |
|
|
|
(7,673 |
)
|
|
Loss before provision for income taxes
|
|
$
|
(25,737 |
)
|
|
$
|
(17,216 |
)
|
|
| Schedule of Components of Benefit for Income Taxes |
The benefit for income taxes consisted of the following:
|
|
|
December 30,
2023
|
|
December 31,
2022
|
|
Current:
|
|
|
|
|
|
|
|
|
Federal
|
|
|
—
|
|
|
—
|
|
|
State
|
|
|
255 |
|
|
349 |
|
|
Foreign
|
|
|
—
|
|
|
—
|
|
|
Total current tax expense
|
|
|
255 |
|
|
349 |
|
| |
|
|
|
|
|
|
|
|
Deferred:
|
|
|
|
|
|
|
|
|
Federal
|
|
|
3 |
|
|
(29 |
)
|
|
State
|
|
|
46 |
|
|
(154 |
)
|
|
Foreign
|
|
|
—
|
|
|
(388 |
)
|
|
Total deferred tax expense
|
|
|
49 |
|
|
(571 |
)
|
|
Total tax benefit
|
|
$
|
304 |
|
$
|
(222 |
)
|
|
| Schedule of Effective Income Tax Rate Reconciliation |
The difference between the income tax benefit on income (loss) and the amount computed at the U.S. federal statutory rate is due to:
|
|
|
December 30,
2023
|
|
December 31,
2022
|
|
Expense at Federal Statutory Rate
|
|
$
|
(5,405 |
)
|
|
21.00 |
%
|
|
$
|
(3,615 |
)
|
|
21.00 |
%
|
|
State taxes, net
|
|
|
(1,149 |
)
|
|
4.47 |
%
|
|
|
(62 |
)
|
|
0.36 |
%
|
|
Foreign operations
|
|
|
375 |
|
|
(1.46 |
)%
|
|
|
153 |
|
|
(0.89 |
)%
|
|
UK Goodwill Impairment
|
|
|
—
|
|
|
0.00 |
%
|
|
|
1,900 |
|
|
(11.04 |
)%
|
|
Permanent differences
|
|
|
1,349 |
|
|
(5.24 |
)%
|
|
|
116 |
|
|
(0.67 |
)%
|
|
True-up adjustments
|
|
|
1,481 |
|
|
(5.76 |
)%
|
|
|
813 |
|
|
6.56 |
%
|
|
State NOL True-up Adjustments – Staffing
|
|
|
(556 |
)
|
|
2.16 |
%
|
|
|
—
|
|
|
0.00 |
%
|
|
State NOL True-up Adjustments – Headway
|
|
|
5,121 |
|
|
(19.90 |
)%
|
|
|
—
|
|
|
0.00 |
%
|
|
Change in valuation allowance
|
|
|
(1,006 |
)
|
|
3.91 |
%
|
|
|
608 |
|
|
(3.53 |
)%
|
|
Other
|
|
|
94 |
|
|
(0.36 |
)%
|
|
|
(135 |
)
|
|
10.50 |
%
|
|
Total Tax Benefit for Income Taxes
|
|
$
|
304 |
|
|
(1.18 |
)%
|
|
$
|
(222 |
)
|
|
1.28 |
%
|
|
| Schedule of Deferred Tax Assets (Liabilities) |
Deferred income taxes are provided for the tax effect of temporary differences between the financial reporting basis and the tax basis of assets and liabilities. Significant components of the Company’s deferred tax assets and (liabilities) are as follows:
|
|
|
December 30,
2023
|
|
December 31,
2022
|
|
Deferred tax assets
|
|
|
|
|
|
|
|
|
|
Net operating loss carryforward
|
|
$
|
10,959 |
|
|
$
|
13,356 |
|
|
Tax credit, deduction and capital loss carryforward
|
|
|
1,193 |
|
|
|
3,212 |
|
|
Share-based compensation
|
|
|
780 |
|
|
|
503 |
|
|
Debt issuance costs
|
|
|
25 |
|
|
|
—
|
|
|
Accrued expenses and other liabilities
|
|
|
1,808 |
|
|
|
1,276 |
|
|
Interest limitation and carryforward
|
|
|
9,501 |
|
|
|
7,546 |
|
|
Operating lease liabilities
|
|
|
1,518 |
|
|
|
1,657 |
|
|
Total deferred tax assets
|
|
|
25,784 |
|
|
|
27,550 |
|
|
Less: valuation allowance
|
|
|
(22,378 |
)
|
|
|
(23,383 |
)
|
|
Deferred tax assets, net of valuation allowance
|
|
|
3,406 |
|
|
|
4,167 |
|
| |
|
|
|
|
|
|
|
|
|
Deferred tax liabilities:
|
|
|
|
|
|
|
|
|
|
Deprecation
|
|
|
(1,178 |
)
|
|
|
(1,507 |
)
|
|
Basis differences in acquired intangibles
|
|
|
(1,064 |
)
|
|
|
(1,347 |
)
|
|
Debt Issuance Cost
|
|
|
—
|
|
|
|
(9 |
)
|
|
Operating lease – Right-of-use assets
|
|
|
(1,392 |
)
|
|
|
(1,482 |
)
|
|
Total deferred tax liabilities
|
|
|
(3,634 |
)
|
|
|
(4,345 |
)
|
|
Deferred tax liability
|
|
$
|
(228 |
)
|
|
$
|
(178 |
)
|
|
| Schedule of Unrecognized Tax Benefits |
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
|
|
|
Fiscal 2023
|
|
Fiscal 2022
|
|
Beginning balance
|
|
$
|
716 |
|
$
|
697 |
|
Additions for tax positions of prior years
|
|
|
49 |
|
|
19 |
|
Reductions for tax positions of prior years
|
|
|
0 |
|
|
0 |
|
Loss before provision for income taxes
|
|
$
|
765 |
|
$
|
716 |
|