Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.23.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Significant Components Deferred Tax Liabilities Significant components of the Company's deferred tax assets and liabilities are as follows at the respective year ends: 
(in thousands) 2022 2021
Deferred income tax assets:    
Inventory valuation reserves $ 963  $ 310 
Inventory capitalization 907  1,207 
Accrued bonus 150  680 
State net operating loss carryforwards 1,572  1,606 
Federal net operating loss carryforwards 1,088  890 
Lease liabilities 7,744  8,069 
Accrued Federal Insurance Contributions Act ("FICA") deferral —  155 
Interest Limitation Carryforwards 555  — 
Intangible asset basis differences 3,262  2,980 
Other 1,192  550 
Total deferred income tax assets 17,433  16,447 
Federal & State valuation allowance (1,371) (3,700)
       Total net deferred income tax assets 16,062  12,747 
Deferred income tax liabilities:
Fixed asset basis differences 7,184  7,276 
Prepaid expenses 418  381 
Lease assets 7,107  7,523 
Total deferred income tax liabilities 14,709  15,180 
Deferred income taxes, net $ 1,353  $ (2,433)
Schedule of Components of Provision for Income Taxes
Significant components of the provision for income taxes are as follows:
(in thousands) 2022 2021
Current:    
Federal $ (189) $ 6,786 
State 199  538 
Total current 10  7,324 
Deferred:  
Federal (3,657) (1,943)
State (564) (128)
Total deferred (4,221) (2,071)
Total $ (4,211) $ 5,253 
Schedule of Reconciliation of Income Taxes Computed at U.S. Rate to Income Tax Expense
The reconciliation of income tax computed at the U. S. federal statutory tax rates to income tax expense is:
(in thousands) 2022 2021
Amount % Amount %
Tax at U.S. statutory rates $ 3,750  21.0  % $ 5,354  21.0  %
State income taxes, net of federal tax benefit
226  1.3  % 371  1.5  %
Federal and State valuation allowance (2,366) (13.2) % (539) (2.1) %
Stock option compensation (173) (1.0) % (196) (0.8) %
Executive compensation limitation —  —  % 59  0.2  %
Transaction costs —  —  % 134  0.5  %
Tax Benefits Associated with Palmer Closure (5,707) (32.0) % —  —  %
Other nondeductible expenses 69  0.4  % 51  0.2  %
Other, net (10) (0.1) % 19  0.1  %
Total $ (4,211) (23.6) % $ 5,253  20.6  %