INCOME TAXES

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The components of our income tax (benefit) expense were as follows:

	Year Ended December 31,
(In thousands)	2023		2022
Current:
Federal	$	539	$	13,389
State	(21)		3,922
	518		17,311
Deferred:
Federal	(24,307)		1,651
State	(6,673)		221
	(30,980)		1,872
Income tax (benefit) expense	$	(30,462)	$	19,183

A reconciliation of income taxes calculated using the statutory federal income tax rate (21% in 2023 and 2022) to our income tax expense is as follows:

	Year ended December 31, 2023				Year ended December 31, 2022
	Amount		%		Amount		%
Income taxes at statutory rate	$	(29,543)	21.0	%	$	17,971	21.0	%
Non-deductible expense	66		—	%	55		0.1	%
State income taxes, net of federal tax effect	(4,826)		3.4	%	3,329		3.8	%
Stock-based compensation and officer compensation	49		—	%	450		0.6	%
Change in fair value of warrant liabilities	(180)		0.1	%	(2,615)		-3.0	%
Impairment of Goodwill	4,502		-3.2	%	—		—	%
Other credits and changes in estimate	(530)		0.4	%	(7)		-0.1	%
Income tax (benefit) expense	$	(30,462)	21.7	%	$	19,183	22.4	%

Deferred tax assets and liabilities were as follows:

	As of December 31,
(In thousands)	2023		2022
Deferred tax assets:
Accounts receivable	$	120	$	167
Accrued charge-backs	2,199		2,093
Other accrued liabilities	372		639
Goodwill	22,677		—
Financing liability	15,682		16,448
Operating lease liability	6,912		8,039
Stock-based compensation	468		523
Net operating losses	2,432		—
Interest expense limitation	2,528		—
Other, net	219		139
	53,609		28,048
Deferred tax liabilities:
Prepaid expenses	(507)		(649)
Goodwill	—		(1,908)
Inventories	(6,035)		(6,873)
Property and equipment	(13,817)		(14,747)
Right of use asset	(6,626)		(8,039)
Intangible assets	(11,180)		(11,368)
	(38,165)		(43,584)
Net deferred tax asset (liability)	$	15,444	$	(15,536)

No significant increases or decreases in the amounts of unrecognized tax benefits are expected in the next 12 months.

We are subject to U.S. federal income tax and income tax in the states of Florida, Arizona, Colorado, Minnesota, Tennessee, Texas, Indiana, Oregon, Wisconsin, Oklahoma and Iowa. We are no longer subject to the examination by Federal and state taxing authorities for years prior to 2020. We recognize interest and penalties related to income tax matters in Income tax expense. Interest and penalties were insignificant in the years ended December 31, 2023 and 2022.