INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

INCOME TAXES

Schedule of components of the net loss (income) before tax on income

The components of net loss before income tax for continuing operations (comprised of the total of loss before income tax and equity in net loss of investee and equity in net loss of investee, net of tax) for the year ended December 31, 2022 and the period February 8, 2021 (date of inception) to December 31, 2021 are as follows (in thousands):

			Period February 8, 2021 (date of
	Year Ended		inception) to
	December 31,		December 31,
	2022		2021
Domestic	$	(86,190)	$	(47,192)
Foreign		—		—
Total	$	(86,190)	$	(47,192)

Schedule of income tax provision

The Company’s income tax benefit for continuing operations for the year ended December 31, 2022 and the period February 8, 2021 (date of inception) to December 31, 2021 are as follows (in thousands):

			Period February 8, 2021 (date of
	Year Ended		inception) to
	December 31,		December 31,
	2022		2021
Current:
Federal	$	—	$	—
State		—		—
Foreign		—		—
Total current income tax (benefit) expense		—		—
Deferred:
Federal		(256)		(615)
State		—		—
Foreign		0		0
Total deferred income tax benefit		(256)		(615)
Income tax benefit	$	(256)	$	(615)

Schedule of reconciliation between income tax benefit and the expected tax benefit at the statutory rate

A reconciliation between income tax benefit and the expected tax benefit at the statutory rate for the year ended December 31, 2022 and the period February 8, 2021 (date of inception) to December 31, 2021 are as follows:

			Period February 8, 2021 (date of
	Year Ended		inception) to
	December 31,		December 31,
	2022		2021
Federal statutory rate	21.0	%	21.0	%
State rate, net of federal benefit	3.0	%	—	%
Non-deductible equity financing costs	—	%	(2.7)	%
Change in valuation allowance	(24.6)	%	(17.0)	%
Other items	0.9	%	—	%
Effective tax rate	0.3	%	1.3	%

Schedule of significant components of the deferred tax assets

The significant components of the Company’s deferred tax liabilities, net consist of the following at December 31, 2022 and 2021 (in thousands):

		December 31, 2022		December 31, 2021
Deferred tax assets:
Net operating loss	$	21,599	$	6,678
Share based liabilities		3,811		2,630
Accruals and reserves		1,632		470
Tax credit carryforwards		—		278
Property, plant and equipment		458		—
Operating lease liability		259		227
Investment in joint venture		1,520		—
Stock compensation		410		—
Gross deferred tax assets		29,689		10,283
Valuation allowance		(29,464)		(8,295)
Deferred tax assets, net		225		1,988
Deferred tax liabilities:
Property, plant and equipment		—		(899)
Intangible assets		—		(723)

Inventory		—		(407)
Right-of-use asset		(225)		(215)
Gross deferred tax liabilities		(225)		(2,244)
Deferred tax liabilities, net	$	—	$	(256)