INCOME TAXES

12 Months Ended

Dec. 31, 2022

INCOME TAXES [Abstract]

INCOME TAXES

13. INCOME TAXES

Components of the provision for income taxes were as follows:

	Year Ended December 31,
	2022		2021
Current:
Federal	$	1,864	$	665
State		644		535
Total		2,508		1,200
Deferred:
Federal		767		8,468
State		527		2,860
Total		1,294		11,328
Total provision	$	3,802	$	12,528

Effective Tax rate

The reconciliation of the effective tax rate to the U.S. Statutory Federal Income tax rate was:

	Year Ended December 31,
	2022					2021
Income before taxes	$	16,436				$	47,246
Expected tax	$	3,452		21.0	%	$	9,922		21.0	%
State tax (net of federal benefit)		925		5.6	%		2,682		5.7	%
Other		(575	)	-3.5	%		(76	)	-0.2	%
Total	$	3,802		23.1	%	$	12,528		26.5	%

Deferred Taxes

The components of the non-current deferred tax assets (liabilities) were as follows:

	At December 31,
	2022			2021
Gross noncurrent deferred tax assets (liabilities)
Lease liability	$	26,897		$	26,142
Depreciation		9,531			10,551
Allowance for bad debts		9,454			8,525
Net operating loss carryforwards		1,957			2,394
Accrued benefits		-			656
Stock-based compensation		541			641
Pension plan liabilities		179			429
Other intangibles		39			70
Accrued expenses		67			-
Goodwill		(1,469	)		(1,267	)
Right-of-use asset		(24,884	)		(24,433	)
Noncurrent deferred tax assets, net	$	22,312		$	23,708

As of December 31, 2022, the Company had gross NOL of $34.2 million for state tax purposes and none for federal. While some states follow federal NOL which can be carried forward indefinitely, majority of the state NOLs expires in 2033 and ending in 2037 if not utilized.

As of December 31, 2021, the Company had gross NOL of $1.2 million and $37.6 million for federal and state tax purposes, respectively. The federal NOLs can be carried forward indefinitely. While some states follow federal NOL which can be carried forward indefinitely, majority of the state NOLs expires in 2033 and ending in 2037 if not utilized.

Utilization of the NOL carryforwards may be subject to a substantial limitation due to ownership change limitations that may occur in the future, as required by Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”), as well as similar state and foreign provisions. These ownership changes may limit the amount of NOL and tax credit carryforwards that can be utilized annually to offset future taxable income and tax, respectively. In general, an “ownership change” as defined by Section 382 of the Code results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percentage points of the outstanding stock of a company by certain shareholders or public groups.