INCOME TAXES (Tables)
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12 Months Ended |
Dec. 31, 2022 |
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| Income Tax Disclosure [Abstract] |
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| Schedule of Components of Income Tax Expense (Benefit) |
Details of the Company’s income tax expense are as follows:
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Year Ended December 31, |
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2022 |
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2021 |
|
2020 |
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| Current tax expense: |
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| Federal |
$ |
26,738 |
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$ |
25,501 |
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$ |
9,728 |
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| State |
7,783 |
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9,234 |
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4,452 |
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$ |
34,521 |
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$ |
34,735 |
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$ |
14,180 |
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| Deferred tax benefit: |
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| Federal |
$ |
(17,780) |
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$ |
(5,477) |
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$ |
(2,650) |
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| State |
(8,332) |
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(1,724) |
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(962) |
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| Foreign |
(5,969) |
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(3,874) |
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(3,307) |
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$ |
(32,081) |
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$ |
(11,075) |
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$ |
(6,919) |
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| Change in valuation allowance |
6,008 |
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5,965 |
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3,362 |
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| Total income tax expense |
$ |
8,448 |
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$ |
29,625 |
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$ |
10,623 |
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| Schedule of Income (Loss), Income Tax (Expense), and Effective Tax Rate |
The differences between the income tax expense and the expected income taxes based on the statutory tax rate applied to pre-tax earnings (loss) are as follows:
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Year Ended December 31, |
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2022 |
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2021 |
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2020 |
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| Loss (income) before income taxes |
$ |
(193,876) |
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$ |
47,104 |
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(201,892) |
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| Statutory tax rate |
21.00 |
% |
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21.00 |
% |
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21.00 |
% |
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| Tax benefit based on statutory rates |
$ |
(40,714) |
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$ |
9,892 |
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$ |
(42,397) |
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| Difference in tax rates |
2,500 |
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16,753 |
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(53,432) |
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| Gain on fair value of derivative |
(44,106) |
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(50,482) |
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83,498 |
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| IRC Section 280E disallowed expenses |
43,272 |
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12,520 |
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3,961 |
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| Share-based compensation |
10,509 |
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2,361 |
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2,099 |
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| Interest expense and debt costs |
13,718 |
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3,616 |
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1,549 |
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| Change in valuation allowance |
6,008 |
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5,965 |
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3,362 |
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| State taxes, net |
1,698 |
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1,249 |
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1,477 |
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| Change in uncertain tax positions |
8,618 |
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26,823 |
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11,857 |
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| Change in state tax rates |
(2,557) |
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— |
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— |
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| Impairment expense |
8,289 |
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— |
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— |
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| Bargain purchase gain |
— |
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— |
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(2,131) |
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| Other differences |
1,213 |
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928 |
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780 |
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| Total income tax expense |
$ |
8,448 |
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$ |
29,625 |
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$ |
10,623 |
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| Effective tax rate |
(4.4) |
% |
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62.9 |
% |
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(5.3) |
% |
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| Schedule of Deferred Tax Assets and Liabilities |
Year-end deferred tax assets and liabilities were due to the following:
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Year Ended December 31, |
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2022 |
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2021 |
| Deferred tax assets: |
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| Lease liability |
$ |
24,328 |
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$ |
26,261 |
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| Net operating losses |
16,819 |
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7,941 |
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| Financing fees |
1,487 |
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2,289 |
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| Start-up costs |
661 |
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|
820 |
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| Inventory |
1,555 |
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— |
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| Property and equipment |
— |
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|
957 |
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| Other deferred tax assets |
619 |
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1,295 |
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| Valuation allowance |
(17,397) |
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(11,389) |
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$ |
28,072 |
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$ |
28,174 |
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| Deferred tax liabilities: |
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| Right-of-use assets |
$ |
(21,865) |
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$ |
(24,406) |
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| Intangible assets |
(5,235) |
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(20,851) |
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| Property and equipment |
(693) |
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— |
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| Other deferred tax liabilities |
(80) |
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(978) |
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$ |
(27,873) |
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(46,235) |
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Net deferred tax asset (liabilities) (1)
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$ |
199 |
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$ |
(18,061) |
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(1) Net deferred tax assets are included in other non-current assets while net deferred tax liabilities are included in non-current income tax liabilities in the consolidated balance sheets.
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| Reconciliation of Unrecognized Tax Benefits |
A reconciliation of the beginning and ending amount of unrecognized tax benefits (exclusive of interest and penalties) are as follows:
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Balance at January 1, 2021 |
$ |
21,135 |
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| Additions based on tax positions related to the current year |
20,368 |
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Balance at December 31, 2021 |
$ |
41,503 |
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| Reductions based on lapse of statute of limitations |
(552) |
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| Additions based on tax positions related to the current year |
1,452 |
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| Reductions based on tax positions related of the prior year |
(127) |
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| Additions for tax positions of prior years recorded to goodwill |
5,982 |
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| Balance at December 31, 2022 |
$ |
48,258 |
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