INCOME TAXES |
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES |
Components of the provision for income taxes were as follows:
Effective Tax rate
The reconciliation of the effective tax rate to the U.S. Statutory Federal Income tax rate was:
Deferred Taxes
The components of the non-current deferred tax assets (liabilities) were as follows:
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.
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