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

INCOME TAXES (Tables)

v3.25.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
SCHEDULE OF INCOME BEFORE INCOME TAX, DOMESTIC AND FOREIGN

The Company’s United States and foreign operations components of income (loss) from continuing operations before income taxes are as follows:

 

 

(in thousands)   2024     2023  
    For the year ended December 31,  
(in thousands)   2024     2023  
United States   $ (15,563 )   $ (30,325 )
Foreign   $ (2,094 )   $ (2,000 )
Total   $ (17,657 )   $ (32,325 )
SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT)

The income tax (benefit) expense for the years ended December 31, 2024 and 2023 consisted of the following:

 

 

(in thousands)   Federal     Foreign     State     Total     Federal     Foreign     State     Total  
    For the year ended December 31, 2024     For the year ended December 31, 2023  
(in thousands)   Federal     Foreign     State     Total     Federal     Foreign     State     Total  
Current tax (benefit) expense                                                                
Current year   $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ — )
Total current year     —       —       —       —       —       —       —       — )
Deferred tax (benefit) expense                                                                
Current year     (3,325 )     (277 )     (998 )     (4,600 )     (5,991 )     (500 )     (1,798 )     (8,289 )
Change in valuation allowance     3,325       277       998       4,600       5,743       500       1,219       7,462  
Change in tax rate     —       —       —       —       —       —       780       780 )
Tax conversion of Operating Company     —       —       —       —       —       —       —       —  
Up-C consolidation     —       —       —       —       —       —       —       — )
KushCo merger or true ups     —       —       —     —       248       —       (201 )     47  
Total deferred tax (benefit) expense     —       —       —       —       —       —       —       —  
Income tax (benefit) expense   $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ — )
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION

A reconciliation of the income tax (benefit) expense computed at the U.S. federal statutory income tax rate to the income tax expense recognized is as follows:

 

 

(in thousands)   2024     2023  
    For the year ended December 31,  
(in thousands)   2024     2023  
Expected federal income tax (benefit) expense at statutory rate   $ (3,331 )   $ (6,788 )
State tax expense, net of federal benefit     (840 )     (1,605 )
Loss attributable to non-controlling interests     —       4  
Change in valuation allowance     4,171       7,462  
Change in tax rates                
Prior year true-ups     —       227  
Other, net     —       700  
Income tax (benefit) expense   $ —     $ —  
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES

The components of deferred tax assets and liabilities were as follows:

 

 

(in thousands)   2024     2023  
    As of December 31,  
(in thousands)   2024     2023  
Deferred tax assets:                
Goodwill and other intangible assets   $ 35,225     $ 36,018  
Fixed assets     394       943  
Inventory     2,364       2,854  
Allowance for doubtful accounts     688       833  
Operating lease liability     265       164  
Equity-based compensation     2,598       2,576  
Business interest carryforward     8,710       6,897  
Net operating loss carryforwards     74,609       67,667  
Other    

130

       411  
Total deferred tax assets     124,983       118,363  
Valuation allowance     (124,709 )     (118,262 )
Net deferred tax assets     (274 )     101  
Deferred tax liability:                
Right of use assets     (274 )     (101 )
Total deferred tax liabilities     (274 )     (101 )
Net deferred tax assets and liabilities   $ —     $ —