Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.19.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Schedule of components of loss before income taxes
The components of income (loss) from continuing operations before provision for income taxes for the periods were as follows (in thousands):
 
 
 
For the years ended December 31,
 
 
 
2018
 
 
2017
 
Domestic
 
$
2,089
 
 
$
(6,532
)
Foreign
 
 
2,531
 
 
 
2,707
 
Total
 
$
4,620
 
 
$
(3,825
)
Schedule of components of income tax provision
The components of the Company’s provision for income taxes were as follows (in thousands):
 
 
 
For the years ended December 31,
 
 
 
2018
 
 
2017
 
Current:
 
 
 
 
 
 
 
 
Federal
 
$
 
 
$
 
State and local
 
 
52
 
 
 
38
 
Foreign
 
 
630
 
 
 
580
 
Total current provision for income taxes
 
 
682
 
 
 
618
 
Deferred:
 
 
 
 
 
 
 
 
Federal
 
 
 
 
 
 
State and local
 
 
 
 
 
 
Foreign
 
 
31
 
 
 
(18
)
Total deferred provision for income taxes
 
 
31
 
 
 
(18
)
Total provision for income taxes
 
$
713
 
 
$
600
 
Schedule of effective tax rate differs from the statutory rates
The Company’s effective tax rate differs from the statutory rates as follows:
 
 
 
For the years ended December 31,
 
 
 
2018
 
 
2017
 
Income tax benefit at federal statutory rate
 
 
21.0
 
 
34.0
%
State and local taxes – current
 
 
0.9
%
 
 
(0.6
)%
State and local taxes – deferred
 
 
10.3
%
 
 
13.4
%
FICA tip credit
 
 
(17.1
)%
 
 
16.9
%
Foreign rate differential
 
 
0.3
%
 
 
8.6
%
Change in valuation allowance
 
 
(15.5
)%
 
 
(87.4
)%
Global intangible low-taxed income (“GILTI”)
 
 
9.2
%
 
 
%
Other items, net
 
 
6.3
%
 
 
(0.6
)%
Total income tax expense
 
 
15.4
%
 
 
(15.7
)%
Schedule of income tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities
The income tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities are as follows (in thousands):
 
 
 
For the years ended December 31,
 
 
 
2018
 
 
2017
 
Deferred tax assets:
 
 
 
 
 
 
 
 
Deferred rent liabilities
 
$
2,524
 
 
$
2,637
 
Lease incentives
 
 
1,577
 
 
 
1,484
 
Stock compensation
 
 
417
 
 
 
458
 
FICA tip credit carryforward
 
 
4,255
 
 
 
3,224
 
Net operating loss
 
 
3,705
 
 
 
5,129
 
Goodwill
 
 
1,652
 
 
 
1,839
 
Inventory
 
 
12
 
 
 
13
 
Charitable contributions carryforward
 
 
39
 
 
 
37
 
Foreign tax credit carryforward
 
 
336
 
 
 
566
 
Deferred revenue
 
 
335
 
 
 
383
 
State and local tax credit carryforward
 
 
445
 
 
 
346
 
Expenses not deductible until paid
 
 
283
 
 
 
 
Total deferred tax assets
 
 
15,580
 
 
 
16,116
 
Deferred tax liabilities:
 
 
 
 
 
 
 
 
Depreciation and amortization
 
 
(4,031
)
 
 
(3,661
)
Basis in LLC interest
 
 
(526
)
 
 
(592
)
ASC 740-10 liability
 
 
(190
)
 
 
(233
)
Total deferred tax liabilities
 
 
(4,747
)
 
 
(4,486
)
Valuation allowance
 
 
(10,795
)
 
 
(11,561
)
Net deferred tax assets
 
$
38
 
 
$
69
 
Schedule of activity of uncertain tax positions
The following table summarizes the activity related to the Company’s uncertain tax positions (in thousands):
 
 
 
For the years ended December 31,
 
 
 
2018
 
 
2017
 
Balance, beginning of year
 
$
685
 
 
$
674
 
Increase related to prior period positions
 
 
 
 
 
 
Increase related to current year positions
 
 
219
 
 
 
203
 
Decrease related to prior period positions
 
 
(97
)
 
 
(192
)
Balance, end of year
 
$
807
 
 
$
685