INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Components of Income Tax Expense (Benefit)

The income tax expense was composed as follows:


	Year Ended December 31,
(In thousands)	2022		2021		2020
Current:
Federal	$	—	$	—	$	(3)
Current state and local	362		330		250
Total current	362		330		247
Deferred:
Federal deferred	(125)		(864)		—
State deferred	—		—		—
Total deferred	(125)		(864)		—
Total Income Tax Expense (Benefit)	$	237	$	(534)	$	247

Schedule of Effective Income Tax Rate Reconciliation

The following table is a reconciliation of the U.S. statutory income tax rate to the effective income tax rate included in the accompanying Consolidated Income Statements:


	Year Ended December 31,
	2022		2021		2020
U.S. statutory rate	21.0	%	21.0	%	21.0	%
Current benefit	(20.8)		(20.8)		(21.2)
State and local income taxes, net of federal tax benefits	0.3		0.3		0.3
Benefit of federal income tax credits	(0.2)		—		—
Other	(0.1)		—		—
Valuation allowance	—		(1.0)		0.2
Permanent differences	—		—		—
Effective Income Tax Rate	0.2	%	(0.5)	%	0.3	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that gave rise to deferred tax assets and liabilities were as follows:


	December 31,
(In thousands)	2022		2021		2020
Compensation and employee benefits	$	32	$	34	$	32
Charitable contribution and credit carryforwards	1,366		1,032		816
Net operating losses	60		133		145
Lease payable	141		138		133
UNICAP	15		14		12
Gross deferred tax assets	1,614		1,351		1,138
Prepaid expenses	(14)		(34)		(28)
Straight-line rent	—		—		—
Buildings and equipment (1)	(612)		(453)		(285)
Gross deferred tax liabilities	(626)		(487)		(313)
Valuation allowance	—		—		(825)
Net Deferred Tax Assets	$	988	$	864	$	—

(1) These buildings and equipment in 2022, 2021, and 2020 relate to the Kerrow Restaurant Operating Business.