INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Components of Income Tax Expense (Benefit)

Details of the Company’s income tax expense are as follows:


	Year Ended December 31,
	2022		2021		2020
Current tax expense:
Federal	$	26,738	$	25,501	$	9,728
State	7,783		9,234		4,452

	$	34,521	$	34,735	$	14,180

Deferred tax benefit:
Federal	$	(17,780)	$	(5,477)	$	(2,650)
State	(8,332)		(1,724)		(962)
Foreign	(5,969)		(3,874)		(3,307)
	$	(32,081)	$	(11,075)	$	(6,919)

Change in valuation allowance	6,008		5,965		3,362

Total income tax expense	$	8,448	$	29,625	$	10,623

Schedule of Income (Loss), Income Tax (Expense), and Effective Tax Rate

The differences between the income tax expense and the expected income taxes based on the statutory tax rate applied to pre-tax earnings (loss) are as follows:


	Year Ended December 31,
	2022			2021			2020
Loss (income) before income taxes	$	(193,876)		$	47,104		(201,892)
Statutory tax rate	21.00		%	21.00		%	21.00		%
Tax benefit based on statutory rates	$	(40,714)		$	9,892		$	(42,397)
Difference in tax rates	2,500			16,753			(53,432)
Gain on fair value of derivative	(44,106)			(50,482)			83,498
IRC Section 280E disallowed expenses	43,272			12,520			3,961
Share-based compensation	10,509			2,361			2,099
Interest expense and debt costs	13,718			3,616			1,549


Change in valuation allowance	6,008			5,965			3,362
State taxes, net	1,698			1,249			1,477
Change in uncertain tax positions	8,618			26,823			11,857
Change in state tax rates	(2,557)			—			—
Impairment expense	8,289			—			—
Bargain purchase gain	—			—			(2,131)
Other differences	1,213			928			780
Total income tax expense	$	8,448		$	29,625		$	10,623
Effective tax rate	(4.4)		%	62.9		%	(5.3)		%

Schedule of Deferred Tax Assets and Liabilities

Year-end deferred tax assets and liabilities were due to the following:


	Year Ended December 31,
	2022		2021
Deferred tax assets:
Lease liability	$	24,328	$	26,261
Net operating losses	16,819		7,941
Financing fees	1,487		2,289
Start-up costs	661		820
Inventory	1,555		—
Property and equipment	—		957
Other deferred tax assets	619		1,295
Valuation allowance	(17,397)		(11,389)
	$	28,072	$	28,174
Deferred tax liabilities:
Right-of-use assets	$	(21,865)	$	(24,406)
Intangible assets	(5,235)		(20,851)
Property and equipment	(693)		—
Other deferred tax liabilities	(80)		(978)
	$	(27,873)	(46,235)
Net deferred tax asset (liabilities) (1)	$	199	$	(18,061)

(1) Net deferred tax assets are included in other non-current assets while net deferred tax liabilities are included in non-current income tax liabilities in the consolidated balance sheets.

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits (exclusive of interest and penalties) are as follows:


Balance at January 1, 2021	$	21,135
Additions based on tax positions related to the current year	20,368

Balance at December 31, 2021	$	41,503
Reductions based on lapse of statute of limitations	(552)
Additions based on tax positions related to the current year	1,452
Reductions based on tax positions related of the prior year	(127)
Additions for tax positions of prior years recorded to goodwill	5,982
Balance at December 31, 2022	$	48,258