INCOME TAXES (Tables)
|
12 Months Ended |
Dec. 31, 2024 |
|---|
| Income Tax Disclosure [Abstract] |
|
| 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, |
|
2024 |
|
2023 |
| Current tax expense: |
|
|
|
| Federal |
$ |
32,454 |
|
|
$ |
27,303 |
|
| State |
3,294 |
|
|
3,608 |
|
|
|
|
|
|
35,748 |
|
|
30,911 |
|
|
|
|
|
| Deferred tax benefit: |
|
|
|
| Federal |
(1,873) |
|
|
2,281 |
|
| State |
(2,634) |
|
|
(1,386) |
|
| Foreign |
(3,241) |
|
|
(5,554) |
|
|
(7,748) |
|
|
(4,659) |
|
| Change in valuation allowance |
3,630 |
|
|
5,554 |
|
| Total income tax expense |
$ |
31,630 |
|
|
$ |
31,806 |
|
|
| 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, |
|
2024 |
|
2023 |
Loss before income taxes |
$ |
(17,147) |
|
|
$ |
(33,296) |
|
| Statutory tax rate |
21.00 |
% |
|
21.00 |
% |
Tax expense (benefit) based on statutory rates |
(3,601) |
|
|
(6,992) |
|
| Difference in tax rates |
(5,642) |
|
|
(4,463) |
|
| Gain on fair value of derivative |
(3,012) |
|
|
(4,564) |
|
| IRC Section 280E disallowed expenses |
— |
|
|
10,862 |
|
| Share-based compensation |
266 |
|
|
173 |
|
|
|
|
|
Deemed interest income |
1,641 |
|
|
842 |
|
|
|
|
|
Write-off foreign NOL |
1,320 |
|
|
— |
|
| Change in valuation allowance |
3,630 |
|
|
5,554 |
|
| State taxes, net |
(2,315) |
|
|
33 |
|
| Change in uncertain tax positions |
35,452 |
|
|
24,888 |
|
|
|
|
|
| Impairment expense |
— |
|
|
1,539 |
|
Return to provision |
1,905 |
|
|
2,786 |
|
|
|
|
|
|
|
|
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| Other differences |
1,986 |
|
|
1,148 |
|
| Total income tax expense |
$ |
31,630 |
|
|
$ |
31,806 |
|
| Effective tax rate |
(184.5) |
% |
|
(95.5) |
% |
|
| 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, |
|
2024 |
|
2023 |
| Deferred tax assets: |
|
|
|
| Lease liability |
$ |
19,300 |
|
|
$ |
17,760 |
|
| Net operating losses |
20,329 |
|
|
22,661 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest carryforward |
7,726 |
|
|
563 |
|
|
|
|
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| Property and equipment |
2,260 |
|
|
1,149 |
|
| Other deferred tax assets |
2,998 |
|
|
3,983 |
|
| Valuation allowance |
(26,580) |
|
|
(22,951) |
|
|
$ |
26,033 |
|
|
$ |
23,165 |
|
| Deferred tax liabilities: |
|
|
|
| Right-of-use assets |
$ |
(17,528) |
|
|
$ |
(18,414) |
|
| Intangible assets |
(4,705) |
|
|
(5,211) |
|
|
|
|
|
| Other deferred tax liabilities |
(378) |
|
|
(235) |
|
|
$ |
(22,611) |
|
|
$ |
(23,860) |
|
Net deferred tax asset (liabilities) (1)
|
$ |
3,422 |
|
|
$ |
(695) |
|
(1) Net deferred tax assets are included in other non-current assets while net deferred tax liabilities are included in other non-current liabilities in the consolidated balance sheets.
|
| Schedule of Unrecognized Tax Benefits Roll Forward |
A reconciliation of the beginning and ending amount of unrecognized tax benefits (exclusive of interest and penalties) are as follows:
|
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|
|
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Balance at January 1, 2023 |
$ |
48,258 |
|
| Reductions based on lapse of statute of limitations |
(1,946) |
|
| Additions based on tax positions related to the current year |
19,843 |
|
Additions based on tax positions related to the prior year |
38,470 |
|
|
|
Balance at December 31, 2023 |
$ |
104,625 |
|
| Reductions based on lapse of statute of limitations |
(1,692) |
|
| Additions based on tax positions related to the current year |
25,041 |
|
Additions based on tax positions related to the prior year |
11,631 |
|
|
|
| Balance at December 31, 2024 |
$ |
139,605 |
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