Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.22.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2021
Income Taxes  
Schedule of components of income before provision (benefit) for income taxes

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

For the years ended December 31, 

    

2021

    

2020

Domestic

$

33,331

$

(19,129)

Foreign

 

203

 

106

Total

$

33,534

$

(19,023)

Schedule of components of provision (benefit) for income taxes

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

For the years ended December 31, 

    

2021

    

2020

Current:

 

  

 

  

Federal

$

$

State and local

 

564

 

39

Foreign

 

110

 

36

Total current

 

674

 

75

Deferred:

 

  

 

  

Federal

 

(195)

 

(4,593)

State and local

 

1,107

 

(887)

Foreign

 

 

5

Total deferred

 

912

 

(5,475)

Total provision (benefit) for income taxes

$

1,586

$

(5,400)

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, 

 

    

2021

    

2020

Income tax provision (benefit) at federal statutory rate

 

21.0 %

(21.0)%

State and local taxes

 

4.5 %

(4.4)%

FICA tip credit

 

(7.2)%

(5.3)%

Change in valuation allowance

 

(0.9)%

Compensation subject to IRC Section 162(m)

 

6.2%

Equity based compensation

(7.6)%

PPP income exclusion

(11.6)%

Other items, net

 

(0.6)%

3.2 %

Effective income tax rate

 

4.7 %

(28.4)%

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, 

    

2021

    

2020

Deferred tax assets:

 

  

 

  

Operating lease liabilities

$

17,152

$

15,255

Stock compensation

 

247

 

439

FICA tip credit carryforward

 

9,929

 

6,860

Net operating loss

 

3,290

 

6,038

Goodwill

 

1,055

 

1,283

Inventory

 

10

 

23

Charitable contributions carryforward

 

 

2

Foreign tax credit carryforward

 

382

 

336

Deferred revenue

 

165

 

321

State and local tax credit carryforward

 

310

 

299

Expenses not deductible until paid

 

1,667

 

985

Basis in LLC interest

175

IRC 163(j) disallowed interest carryforward

835

Debt issuance costs

143

Kona related acquisition costs

813

201

Deferred payroll taxes

281

703

Total deferred tax assets

 

35,444

 

33,755

Deferred tax liabilities:

 

  

 

  

Operating lease right-of-use assets

(13,150)

(10,381)

Depreciation and amortization

 

(9,605)

 

(9,812)

Other

 

(40)

 

Total deferred tax liabilities

 

(22,795)

 

(20,193)

Valuation allowance

 

(336)

(336)

Net deferred tax assets

$

12,313

$

13,226

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, 

    

2021

    

2020

Balance, beginning of year

$

814

$

814

Increase related to current year positions

 

 

209

Decrease related to prior period positions

 

(367)

 

(209)

Balance, end of year

$

447

$

814