Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.20.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2020
Income Taxes  
Schedule of components of income before (benefit) provision for income taxes

The components of income before benefit for income taxes were as follows (in thousands):

 

 

 

 

 

 

 

 

 

For the years ended December 31, 

 

    

2020

    

2019

Domestic

 

$

(19,129)

 

$

7,780

Foreign

 

 

106

 

 

2,199

Total

 

$

(19,023)

 

$

9,979

 

Schedule of components of (benefit) provision for income taxes

The components of the Company’s (benefit) provision for income taxes were as follows (in thousands):

 

 

 

 

 

 

 

 

 

For the years ended December 31, 

 

    

2020

    

2019

Current:

 

 

  

 

 

  

Federal

 

$

 —

 

$

 —

State and local

 

 

39

 

 

109

Foreign

 

 

36

 

 

546

Total current

 

 

75

 

 

655

Deferred:

 

 

  

 

 

  

Federal

 

 

(4,593)

 

 

(9,242)

State and local

 

 

(887)

 

 

(2,600)

Foreign

 

 

 5

 

 

33

Total deferred

 

 

(5,475)

 

 

(11,809)

Total benefit for income taxes

 

$

(5,400)

 

$

(11,154)

 

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, 

 

 

    

2020

    

2019

 

Income tax benefit at federal statutory rate

 

21.0 %

 

21.0 %

 

State and local taxes

 

4.4 %

 

0.6 %

 

FICA tip credit

 

5.3 %

 

(10.5)%

 

Foreign rate differential

 

 —

 

(0.8)%

 

Change in valuation allowance

 

0.9%

 

(103.0)%

 

Global intangible low-taxed income (“GILTI”)

 

 —

 

3.9 %

 

Bargain purchase gain

 

 —

 

(23.1)%

 

Other items, net

 

(3.2)%

 

0.1 %

 

Effective income tax rate

 

28.4 %

 

(111.8)%

 

 

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, 

 

    

2020

    

2019

Deferred tax assets:

 

 

  

 

 

  

Deferred rent liabilities

 

$

2,647

 

$

2,502

Lease incentives

 

 

2,227

 

 

2,088

Stock compensation

 

 

439

 

 

401

FICA tip credit carryforward

 

 

6,860

 

 

5,575

Net operating loss

 

 

6,167

 

 

3,496

Goodwill

 

 

1,283

 

 

1,427

Inventory

 

 

23

 

 

 6

Charitable contributions carryforward

 

 

 2

 

 

 —

Foreign tax credit carryforward

 

 

336

 

 

510

Deferred revenue

 

 

321

 

 

373

State and local tax credit carryforward

 

 

299

 

 

420

Expenses not deductible until paid

 

 

985

 

 

306

Basis in LLC interest

 

 

175

 

 

173

IRC 163(j) disallowed interest carryforward

 

 

835

 

 

 —

Kona related acquisition costs

 

 

201

 

 

 —

Deferred payroll taxes

 

 

703

 

 

 —

Total deferred tax assets

 

 

23,503

 

 

17,277

Deferred tax liabilities:

 

 

  

 

 

  

Depreciation and amortization

 

 

(9,812)

 

 

(8,835)

ASC 740‑10 liability

 

 

(129)

 

 

(181)

Total deferred tax liabilities

 

 

(9,941)

 

 

(9,016)

Valuation allowance

 

 

(336)

 

 

(510)

Net deferred tax assets

 

$

13,226

 

$

7,751

 

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, 

 

    

2020

    

2019

Balance, beginning of year

 

$

814

 

$

807

Increase related to current year positions

 

 

209

 

 

209

Decrease related to prior period positions

 

 

(209)

 

 

(202)

Balance, end of year

 

$

814

 

$

814