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INCOME TAXES
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The components of income tax benefit (expense) from continued operation for the years ended December 31, 2023, 2022 and 2021 are as follows (in thousands): 
December 31, 2023December 31, 2022December 31, 2021
Current:
Federal tax expense$— $— $— 
State tax expense(24)(9)— 
Deferred:
Federal tax benefit10,214 5,313 — 
State tax benefit3,195 1,867 — 
Total tax benefit$13,385 $7,171 $— 
Reconciliation between the amount determined by applying the U.S. federal income tax rate of 21% to pretax income from continuing operations and income tax expense presented in the accompanying consolidated statements of operations was as follows for the years ended December 31, 2023, 2022, and 2021 (in thousands): 
 December 31, 2023December 31, 2022December 31, 2021
Statutory tax on book income$(28,959)$(5,007)$(5,216)
Permanent differences1,714 (293)(574)
Change in derivative liability— — 2,382 
Convertible Debt4,736 — — 
Change in valuation allowance12,743 325 7,930 
PPP Loan Forgiveness— — (887)
Non-Controlling Interest102 (1,432)(2,247)
State Income Tax Expense(3,176)(977)(1,388)
Other(545)213 — 
Income tax benefit$(13,385)$(7,171)$— 
The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2023 and 2022 is presented below (in thousands):
December 31, 2023December 31, 2022
Deferred tax assets:
State net operating loss carry forwards$7,499 $1,624 
Accrued bonus and stock-based compensation579 499 
Basis of intangible assets2,227 2,010 
Bad debt/environmental reserve698 771 
Contribution carryover77 75 
Transaction costs1,041 1,807 
Deferred interest expense under section 163(j)28,613 13,215 
Right to use asset41,861 25,766 
Partnership income— 450 
Net operating loss carry forwards33,240 17,160 
Deferred tax assets related to discontinued operations— 2,181 
Less valuation allowance(18,100)(505)
  Total deferred tax assets$97,735 $65,053 
December 31, 2023December 31, 2022
Deferred tax liabilities:
Basis of fixed assets$(55,693)$(21,393)
Discount on convertible note(2,591)(11,820)
Right of use liability(41,233)(25,129)
Derivative liability— (2,970)
Partnership income(994)(434)
Deferred tax liabilities related to discontinued operations— (809)
Total deferred tax liabilities$(100,511)$(62,555)
Net deferred tax assets (liabilities)$(2,776)$2,498 
The Company provides a valuation allowance when it is more likely than not that some portion of the deferred tax assets will not be realized. Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. Based on this evaluation, as of December 31, 2023 and 2022, valuation allowances of approximately $18.1 million and $0.5 million, respectively, have been recorded to reduce net deferred tax assets to an amount that management believes is more than likely not to be realized.
The Company is subject to examination by Federal and State tax authorities for fiscal years 2018 through 2022, except for utilization of net operating losses.
At December 31, 2023, the Company had federal net operating loss carry-forwards ("NOLs") of approximately $146.0 million. Approximately $73.2 million of NOL was acquired as part of the April 2009 merger between World Waste Technologies, Inc. and the Company's wholly-owned subsidiary Vertex Merger Sub, LLC and subsequent operating losses incurred by the Company. IRC Sections 382 and 383 provide an annual limitation with respect to the ability of a corporation to utilize its tax attributes against future U.S. taxable income in the event of a change in ownership.  The net operating loss carry-forwards at December 31, 2022 reflect a reduction of approximately $31.7 million as a result of an ownership change triggering event in May 2016, as defined under IRC Section 382. The net operating loss carryforward will begin to expire in 2026. Those arising in tax years after 2017 will never expire.