Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

v3.25.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2024
Income Taxes  
Schedule of components of income before provision for income taxes

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

​

​

​

​

​

​

​

​

​

For the years ended December 31, 

​

    

2024

    

2023

Domestic

​

$

(24,509)

​

$

2,077

Foreign

​

 

22

​

 

189

Total

​

$

(24,487)

​

$

2,266

Schedule of components of provision for income taxes

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

​

​

​

​

​

​

​

​

​

For the years ended December 31, 

​

    

2024

    

2023

Current:

 

​

  

 

​

  

Federal

​

$

66

​

$

—

State and local

​

 

544

​

 

638

Foreign

​

 

143

​

 

35

Total current

​

 

753

​

 

673

Deferred:

​

 

  

​

 

  

Federal

​

 

(7,528)

​

 

(2,550)

State and local

​

 

(1,059)

​

 

117

Foreign

​

 

—

​

 

—

Total deferred

​

 

(8,587)

​

 

(2,433)

Total benefit for income taxes

​

$

(7,834)

​

$

(1,760)

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, 

 

​

    

2024

    

2023

​

Income tax provision at federal statutory rate

 

21.0%

​

21.0%

​

State and local taxes

 

2.6%

​

26.5%

​

FICA tip credit

 

18.3%

​

(151.2)%

​

Compensation subject to IRC Section 162(m)

 

(3.3)%

​

52.3%

​

Equity based compensation

​

(0.5)%

​

(33.1)%

​

Transaction costs

​

(3.8)%

​

—%

​

Non-controlling interest

​

(0.7)%

​

6.4%

​

Other items, net

 

(1.6)%

​

0.4%

​

Effective income tax rate

 

32.0%

​

(77.7)%

​

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, 

​

    

2024

    

2023

Deferred tax assets:

 

​

  

 

​

  

Operating lease liabilities

​

$

70,807

​

$

23,798

Stock compensation

​

 

361

​

 

371

FICA tip credit carryforward

​

 

49,407

​

 

18,312

Net operating loss

​

 

7,324

​

 

5,543

Goodwill

​

 

589

​

 

753

Inventory

​

 

101

​

 

52

Charitable contributions carryforward

​

 

37

​

 

26

Foreign tax credit carryforward

​

 

622

​

 

622

Deferred revenue

​

 

1,627

​

 

126

State and local tax credit carryforward

​

 

21

​

 

78

Expenses not deductible until paid

​

 

2,961

​

 

83

IRC 163(j) disallowed interest carryforward

​

​

34,002

​

​

2,152

Debt issuance costs

​

​

—

​

​

82

Kona Grill related acquisition costs

​

​

621

​

​

693

Total deferred tax assets

​

 

168,480

​

 

52,691

Deferred tax liabilities:

​

 

  

​

 

  

Operating lease right-of-use assets

​

​

(60,600)

​

​

(17,360)

Depreciation and amortization

​

 

(19,599)

​

 

(19,888)

Trademarks and franchise agreements

​

 

(30,215)

​

 

—

Other

​

 

(136)

​

 

(64)

Total deferred tax liabilities

​

 

(110,550)

​

 

(37,312)

Valuation allowance

​

 

(4,248)

​

​

(622)

Net deferred tax assets

​

$

53,682

​

$

14,757

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, 

​

    

2024

    

2023

Balance, beginning of year

​

$

—

​

$

46

Increase related to acquisitions

​

 

127

​

 

—

Decrease related to prior period positions

​

 

—

​

 

(46)

Balance, end of year

​

$

127

​

$

—