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INCOME TAXES
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Loss before tax was as follows:
Years ended December 31,
20232022
United States$(58,068)$(235,215)
Foreign(6,958)(56,643)
Loss before tax$(65,026)$(291,858)
Significant components of income tax benefit consist of the following:
Years ended December 31,
20232022
Current:
Federal
$— $— 
State
167 100 
Foreign
(382)2,767 
Total current expense
(215)2,867 
Deferred:
Federal
111 (8,689)
State
— (2,980)
Foreign
(109)2,359 
Total deferred expense (benefit)
2 (9,310)
Total income tax benefit
$(213)$(6,443)
The reconciliation of income tax computed at the U.S. federal statutory tax rates of 21% to income tax benefit consists of the following:
Years ended December 31,
20232022
Effective rate reconciliation
U.S. federal tax benefit at statutory rate
$(13,656)$(61,290)
State income taxes, net
132 422 
Permanent items
120 3,785 
Goodwill impairment— 23,170 
Foreign rate differential
(3,988)(443)
162(m) officers compensation
17 1,010 
Share-based compensation
680 26 
Deferred adjustments
1,035 770 
Other, net
(1,320)2,410 
Valuation allowance
16,767 23,697 
Total income tax benefit$(213)$(6,443)
Deferred income tax assets and liabilities consist of the following:
December 31,
20232022
Deferred tax assets
Lease liabilities
$16,646 $17,079 
Accrued expenses
2,022 1,453 
Share-based compensation
177 865 
Intangible assets
1,422 2,110 
Net operating loss
38,729 31,425 
Inventories
5,437 6,346 
Interest expense
9,466 4,183 
Other
1,543 1,130 
Deferred tax assets
75,442 64,591 
Valuation allowance
(55,742)(39,293)
Total deferred tax assets
19,700 25,298 
Deferred tax liabilities
Property, plant and equipment
(8,618)(10,216)
Operating lease right-of-use assets
(14,063)(17,767)
Other
(37)— 
Total deferred tax liabilities(22,718)(27,983)
Net deferred tax liability
$(3,018)$(2,685)
Other long-term assets - deferred tax assets$214 $— 
Long-term deferred tax liabilities(3,232)(2,685)
Net deferred tax liability$(3,018)$(2,685)
As of December 31, 2023, the Company had federal and state net operating loss ("NOL") carryforwards of approximately $153,300 and $113,100, respectively. The federal and state NOL carryforwards, if not utilized, will begin to expire in 2037 and 2027, respectively, and $140,000 of the federal losses are indefinite. As of December 31, 2022, the Company had federal and state NOL carryforwards of approximately $107,100 and $80,800, respectively. Foreign NOL carryforwards were approximately $8,900 at December 31, 2023. The foreign NOLs, if not utilized, will begin to expire in 2040.
The Company determined the amount of its valuation allowance based on estimates regarding the timing and amount of the reversal of taxable temporary differences, expected future taxable income by jurisdiction, and the impact of tax planning strategies. As of December 31, 2023, and 2022, the Company believes it is more-likely-than-not that it will not be able to realize its U.S. deferred tax assets and therefore has maintained a full valuation allowance against its U.S. deferred tax assets. The Company has also provided valuation allowances against certain foreign deferred tax assets.
Carryforwards of NOLs are subject to possible limitation should a change in ownership occur, as defined by Internal Revenue Code Section 382. An ownership change is generally defined as a greater than 50% increase in equity ownership by 5% stockholders in any three-year period. The Company experienced an aggregate ownership change which exceeded the 50% threshold in connection with the Company's IPO, and future changes in stock ownership may occur. To the extent that the Company earns net taxable income, the Company's ability to use NOLs to offset such taxable income may be subject to limitations. The annual limitation resulting from the IPO ownership change is not expected to result in the expiration of the NOL carry forwards before utilization.
In 2023 and 2022, the Company did not record any liabilities related to uncertain tax positions. The Company does not have any tax positions for which it is reasonably possible that the total amount of gross unrecognized tax benefits will significantly change within 12 months of December 31, 2023. The Company recognizes interest and penalties relating to unrecognized tax benefits as part of its income tax expense. The Company’s major filing jurisdictions are the United States and Canada. Due to the Company’s net operating loss carryforwards, the Company’s income tax returns remain subject to examination by federal, foreign and most state taxing authorities for all tax years.