XML 27 R15.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income tax provision (benefit) is summarized as follows:
| Year Ended December 31,
(In thousands) | 2021 |  | 2020 |  | 2019
Current: |  |  |  |  |
Federal | $ | — |  |  | $ | (371) |  |  | $ | (371) |
State | 95 |  |  | — |  |  | — |
Total current tax benefit | $ | 95 |  |  | $ | (371) |  |  | $ | (371) |
Deferred: |  |  |  |  |
Federal | $ | 325 |  |  | $ | 430 |  |  | $ | (1,475) |
State | 16 |  |  | 2 |  |  | (30) |
Total deferred tax provision (benefit) | 341 |  |  | 432 |  |  | (1,505) |
Income tax provision (benefit) | $ | 436 |  |  | $ | 61 |  |  | $ | (1,876) |
Reconciliation of the statutory federal income tax rate to the Company’s actual rate based on income (loss) before income tax provision (benefit) is summarized below:
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
Statutory federal tax rate | 21.00 | % |  | 21.00 | % |  | 21.00 | %
State income taxes, net of federal income taxes | 1.41 |  |  | 0.89 |  |  | 1.20 |
Permanent tax differences – stock compensation | (3.93) |  |  | (0.43) |  |  | (0.70) |
Permanent tax differences – business meals | 0.23 |  |  | (0.07) |  |  | (0.90) |
Permanent tax differences – executive compensation and other | 2.13 |  |  | (0.86) |  |  | — |
Purchase price allocation adjustment – merger | — |  |  | — |  |  | 5.90 |
Change in valuation allowance | (19.69) |  |  | (19.09) |  |  | (32.30) |
FICA credit generated | (0.28) |  |  | 0.33 |  |  | 2.80 |
Impact of ASC 842 | — |  |  | — |  |  | 7.70 |
Change in tax rate and apportionment | (0.03) |  |  | 0.11 |  |  | (0.30) |
Deferred only adjustment to beginning deferred balances | (0.57) |  |  | (1.92) |  |  | 0.10 |
Effective tax rate | 0.27 | % |  | (0.04) | % |  | 4.50 | %
The Company’s current and non-current deferred tax assets (liabilities) are comprised of the following:
| December 31,
(In thousands) | 2021 |  | 2020
Deferred tax assets: |  |  |
Accruals and reserves | $ | 7,688 |  |  | $ | 4,315 |
Share-based compensation expense | 5,781 |  |  | 5,469 |
General business credit carryforward | 489 |  |  | 4,500 |
State tax credits | 4,192 |  |  | 5,500 |
Net operating loss carryforwards | 6,076 |  |  | 42,146 |
Operating lease obligation | 41,877 |  |  | 42,039 |
Amortization of intangible assets | — |  |  | 1,073 |
Depreciation of fixed assets | 4,875 |  |  | — |
Other | 545 |  |  | 647 |
| 71,523 |  |  | 105,689 |
Valuation allowances | (30,783) |  |  | (62,724) |
| $ | 40,740 |  |  | $ | 42,965 |
Deferred tax liabilities: |  |  |
Prepaid services | $ | (3,282) |  |  | $ | (715) |
Amortization of intangible assets | (941) |  |  | — |
Depreciation of fixed assets | — |  |  | (5,104) |
Right-of-use assets | (38,378) |  |  | (38,666) |
| (42,601) |  |  | (44,485) |
Net deferred tax liabilities | $ | (1,861) |  |  | $ | (1,520) |
Deferred tax assets are evaluated by considering historical levels of income, estimates of future taxable income and the impact of tax planning strategies. The Company’s financial results for the year ended December 31, 2021 include a net decrease in valuation allowance of $31.9 million. The Company has performed a continuing evaluation of its deferred tax asset valuation allowance on a quarterly basis. The Company concluded that, as of December 31, 2021, negative evidence outweighs positive evidence for the realization of deferred tax assets and as a result has provided a full valuation allowance against its net deferred tax assets. The Company may reverse some or all of its valuation allowance against its net deferred tax assets in future periods to the extent it becomes more likely than not that the deferred tax assets will be realized. As of December 31, 2021, the Company had $25.7 million of federal net operating loss carryforwards, which do not expire. These net operating losses have the potential to be used to offset future ordinary taxable income and reduce future cash tax liabilities. However, in connection with the acquisition of American Casino and Entertainment Properties LLC (“American”), the Company issued 4,046,494 shares of its common stock to a former American equity holder, which resulted in an “ownership change” under Section 382 that will generally limit the amount of net operating losses the Company can utilize annually. As of December 31, 2021, the Company has concluded that the acquisition of American will not result in a loss of net operating loss nor credit carryforwards. Additionally, the Company had deferred tax assets of $0.5 million related to general business credits. The general business credit carryforward begins to expire in 2041. As of December 31, 2021, the Company’s 2017 and 2018 federal tax returns were under audit by the IRS. As of December 31, 2021, the Company had no material uncertain tax positions.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration