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Income taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income taxes | Note 10 – Income taxes The provision for income taxes consists of the following:
Provision for income taxes |  |  |  |
|  | For the Years Ended December 31,
|  | 2021 |  | 2020
Current: |  |  |  |
Federal |  | $ | 1,097 |  |  | $ | 398 |
State and local |  |  | 951 |  |  |  | 357 |
Total current |  |  | 2,048 |  |  |  | 755 |
Deferred |  |  | 257 |  |  |  | 841 |
Provision for income taxes |  | $ | 2,305 |  |  | $ | 1,596 |
The following is a reconciliation of income tax expense computed at the U.S. federal statutory tax rate to income tax expense reported in the consolidated statement of operations:
Reconciliation to effective rate for income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | 2021 |  | 2020
|  | Amount |  | Percentage |  | Amount |  | Percentage
Federal income tax at statutory rate |  | $ | 1,179 |  |  |  | 21.0 | % |  | $ | 1,015 |  |  |  | 21.0 | %
State and local tax, net |  |  | 440 |  |  |  | 7.8 | % |  |  | 428 |  |  |  | 8.9 | %
Other permanent differences |  |  | 6 |  |  |  | 0.1 | % |  |  | 12 |  |  |  | 0.3 | %
Section 162m |  |  | 206 |  |  |  | 3.7 | % |  |  | 296 |  |  |  | 6.1 | %
Stock based compensation |  |  | 100 |  |  |  | 1.8 | % |  |  | 157 |  |  |  | 3.2 | %
Uncertain tax positions |  |  | 218 |  |  |  | 3.9 | % |  |  | (43 | ) |  |  | (0.9 | %)
Change in tax rates |  |  | 198 |  |  |  | 3.4 | % |  |  | (245 | ) |  |  | (5.0 | %)
Other |  |  | (42 | ) |  |  | (0.7 | %) |  |  | (24 | ) |  |  | (0.5 | %)
Provision for income taxes |  | $ | 2,305 |  |  |  | 41.0 | % |  | $ | 1,596 |  |  |  | 33.1 | %
Prior year amounts have been restated to reflect the correction of errors discussed in Note 1 – Basis of presentation. The tax effects of temporary differences giving rise to deferred income tax assets and liabilities were:
Schedule of deferred tax assets and liabilities |  |  |  |  |  |  |  |
|  | December 31,
|  | 2021 |  | 2020 (As Restated)
Deferred tax liabilities attributable to: |  |  |  |  |  |  |  |
Accumulated depreciation and amortization |  | $ | (3,401 | ) |  | $ | (3,281 | )
Unrealized gains |  |  | (473 | ) |  |  | (467 | )
Total deferred tax liabilities |  |  | (3,874 | ) |  |  | (3,748 | )
Deferred tax assets attributable to: |  |  |  |  |  |  |  |
Net operating losses |  |  | 6 |  |  |  | 6 |
Accrued compensation |  |  | 170 |  |  |  | 149 |
Incentive compensation |  |  | 164 |  |  |  | 168 |
Inventory |  |  | 324 |  |  |  | 323 |
Allowances for doubtful accounts and discounts |  |  | 5 |  |  |  | 109 |
Deferred revenue |  |  | 10 |  |  |  | 15 |
Other |  |  | (6 | ) |  |  | 34 |
Total net deferred tax assets |  |  | 673 |  |  |  | 804 |
Net deferred tax liabilities |  | $ | (3,201 | ) |  | $ | (2,944 | )
The following table details the Company's tax attributes related to net operating losses for which it has recorded deferred tax assets.
Schedule of tax attributes related to net operating losses |  |  |  |  |  |  |  |  |
Tax Attributes |  | Gross Amount |  |  | Net Amount |  |  | Expiration Years |
State net operating losses |  | $ | 116 |  |  | $ | 6 |  |  |  | 2035 |
|  |  |  |  |  | $ | 6 |  |  |  |  |
During the year, the Company recorded adjustments to its unrecognized tax benefits. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
Reconciliation of amount of unrecognized tax benefits |  |  |  |  |  |  |  |
|  | 2021 |  | 2020
Balance at January 1 |  | $ | 95 |  |  | $ | 142 |
Additions based on tax positions of prior years |  |  | 301 |  |  |  | – |
Reduction for tax positions of prior years |  |  | – |  |  |  | (47 | )
Balance at December 31 |  | $ | 396 |  |  | $ | 95 |
Lifeway is subject to U.S. federal income tax as well as income tax in multiple state and city jurisdictions. With limited exceptions, Lifeway’s calendar year 2018 and subsequent federal and state tax years remain open by statute. The amount of unrecognized tax benefits that, if recognized, would impact the annual effective tax rate was not significant as of December 31, 2021. The annual effective tax rate would have decreased by 3.9% as of December 31, 2021 if the unrecognized tax benefits were recognized. The amount of interest and penalties recognized in the consolidated statements of operations was $0 and $(16) during 2021 and 2020, respectively. The amount of accrued interest and penalties recognized in the consolidated balance sheets was $0 and $44 at December 31, 2021 and 2020, respectively.

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- 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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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