Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.22.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2021
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) before continuing operations before income taxes are as follows:
For the year ended December 31,
(in thousands) 2021 2020
United States $ (51,109) $ (40,668)
Foreign (2,304) (6,842)
Total $ (53,413) $ (47,510)
Schedule of Components of Income Tax Expense (Benefit) The income tax expense for the years ended December 31, 2021 and 2020 consisted of the following:
For the year ended December 31, 2021 For the year ended December 31, 2020
(in thousands) Federal Foreign State Total Federal Foreign State Total
Current tax expense
Current year $ —  $ (10) $ 20  $ 10  $ 6  $ 188  $ —  $ 194 
Total current year —  (10) 20  10  6  188  —  194 
Deferred tax expense
Current year (6,624) (636) (2,211) (9,471) (2,278) (1,898) (657) (4,833)
Change in valuation allowance 30,255  636  12,095  42,986  2,397  1,898  776  5,071 
Change in tax rate 101  —  (479) (378) 28  —  (132) (104)
KushCo merger (23,732) —  (9,405) (33,137) (147) —  13  (134)
Total deferred —  —  —  —  —  —  —  — 
Income tax expense $ —  $ (10) $ 20  $ 10  $ 6  $ 188  $ —  $ 194 
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of the income tax expense computed at the U.S. federal statutory income tax rate to the income tax expense recognized is as follows:
For the year ended December 31,
(in thousands) 2021 2020
Expected federal income tax (benefit) expense at statutory rate $ (11,216) $ (9,977)
State tax expense, net of federal benefit (2,125) (652)
Loss attributable to non-controlling interests 3,475  5,628 
Valuation allowance 10,293  5,290 
Other, net (417) (95)
Income tax expense $ 10  $ 194 
Schedule of Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities were as follows:
As of December 31,
(in thousands) 2021 2020
Deferred tax assets:
Intangible assets $ 16,285  $ 9,197 
Basis difference in investment in the Operating Company —  742 
Net operating loss carryforwards 44,424  5,129 
Other 4,351  43 
Total deferred tax assets 65,060  15,111 
Valuation allowance (58,098) (15,111)
Net deferred tax assets 6,962  — 
Deferred tax liability:
Basis difference in investment in the Operating Company (6,962) — 
Net deferred tax assets and liabilities $ —  $ —