Income taxes (Tables)
|
12 Months Ended |
Dec. 31, 2016 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Components of Income (Loss) before Income Taxes |
The components of "income (loss) before income taxes" for the periods were as follows:
|
|
|
|
|
|
|
|
|
|
Year ended |
|
December 31,
2016 |
|
December 31,
2015 |
Loss from continuing operations before provision for income taxes |
|
|
|
Domestic |
$ |
(5,769,069 |
) |
|
$ |
(2,077,455 |
) |
Foreign |
(224,798 |
) |
|
(135,337 |
) |
|
|
|
|
Total |
$ |
(5,993,867 |
) |
|
$ |
(2,212,792 |
) |
|
| Schedule of the Provision for Income Taxes |
The components of our "provision (benefit) for income taxes" consist of the following:
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
December 31, 2016 |
|
December 31, 2015 |
Current tax expense: |
|
|
|
|
|
Federal |
$ |
— |
|
|
$ |
— |
|
State and local |
61,920 |
|
|
533,815 |
|
Foreign |
259,987 |
|
|
207,952 |
|
Total current tax expense |
321,907 |
|
|
741,767 |
|
Deferred tax expense (benefit): |
|
|
|
|
|
Federal |
7,654,364 |
|
|
(7,631,243 |
) |
State and local |
2,393,893 |
|
|
(2,376,233 |
) |
Foreign |
(252 |
) |
|
(50,778 |
) |
Total deferred tax expense (benefit) |
10,048,005 |
|
|
(10,058,254 |
) |
Total income tax expense (benefit) |
$ |
10,369,912 |
|
|
$ |
(9,316,487 |
) |
|
| Schedule of the Reconciliation Between the Effective Tax Rate and the Statutory Tax Rate |
The difference between the reported income tax expense and taxes determined by applying the applicable U.S. federal statutory income tax rate to (loss) income before taxes from continuing operations is reconciled as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended |
|
December 31,
2016 |
|
December 31,
2015 |
Income tax benefit at federal statutory rate |
$ |
(2,037,915 |
) |
|
34.0 |
% |
|
$ |
(752,349 |
) |
|
34.0 |
% |
State and local taxes – current |
30,951 |
|
|
(0.5 |
)% |
|
42,227 |
|
|
(1.9 |
)% |
State and local taxes (benefits) – deferred |
(746,820 |
) |
|
12.5 |
% |
|
(574,273 |
) |
|
26.0 |
% |
FICA tip credit |
(430,360 |
) |
|
7.2 |
% |
|
(495,254 |
) |
|
22.4 |
% |
Foreign rate differential |
(42,418 |
) |
|
0.7 |
% |
|
19,500 |
|
|
(0.9 |
)% |
Foreign tax - unrepatriated earnings |
784,999 |
|
|
(13.10 |
)% |
|
— |
|
|
— |
% |
Change in valuation allowance |
12,029,957 |
|
|
(200.7 |
)% |
|
(7,707,333 |
) |
|
348.3 |
% |
Other items, net |
781,518 |
|
|
(13.1 |
)% |
|
150,995 |
|
|
(6.8 |
)% |
Total income tax expense |
$ |
10,369,912 |
|
|
(173.0 |
)% |
|
$ |
(9,316,487 |
) |
|
421.1 |
% |
|
| Schedule of the Components of Deferred Tax Assets and Liabilities |
Significant components of deferred tax assets and liabilities are presented below:
|
|
|
|
|
|
|
|
|
|
Year ended |
|
December 31, 2016 |
|
December 31, 2015 |
Deferred tax assets: |
|
|
|
|
|
Deferred rent liabilities |
$ |
3,744,188 |
|
|
$ |
4,027,504 |
|
Lease incentives |
1,565,606 |
|
|
508,351 |
|
Stock compensation |
744,701 |
|
|
563,582 |
|
FICA tip credit carryforward |
2,065,680 |
|
|
1,421,757 |
|
Net operating loss |
6,246,404 |
|
|
1,899,676 |
|
Goodwill |
2,861,663 |
|
|
3,258,403 |
|
Derivative expense |
— |
|
|
42,899 |
|
Inventory |
10,200 |
|
|
9,789 |
|
Charitable contributions carryforward |
30,283 |
|
|
6,131 |
|
Foreign tax credit carryforward |
384,239 |
|
|
109,957 |
|
Deferred revenue |
477,895 |
|
|
471,710 |
|
State and local tax credit carryforward |
305,675 |
|
|
243,508 |
|
|
|
|
|
Total deferred tax assets |
18,436,534 |
|
|
12,563,267 |
|
|
|
|
|
Deferred tax liabilities: |
|
|
|
Depreciation and amortization |
(5,321,194 |
) |
|
(2,352,575 |
) |
Basis in LLC interest |
(20,353 |
) |
|
(117,020 |
) |
Unremitted foreign earnings |
(784,999 |
) |
|
— |
|
ASC 740-10 liability |
(229,000 |
) |
|
— |
|
Total deferred tax liabilities |
(6,355,546 |
) |
|
(2,469,595 |
) |
|
|
|
|
Valuation allowance |
(12,029,957 |
) |
|
— |
|
|
|
|
|
Net deferred tax assets |
$ |
51,031 |
|
|
$ |
10,093,672 |
|
|