XML 56 R19.htm IDEA: XBRL DOCUMENT
v3.25.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2024
Income Taxes [Abstract] |
Income Taxes | NOTE 12 - INCOME T AXES Income before income taxes includes the following:
(Dollars in thousands) |  | 2024 |  | 2023 |  | 2022
United States |  | $ | (30,056) |  | $ | (29,986) |  | $ | (40,087)
Foreign |  |  | (4,974) |  |  | (1,065) |  |  | 3,975
Income (loss) before income taxes and equity earnings of unconsolidated joint ventures |  | $ | (35,030) |  | $ | (31,051) |  | $ | (36,112)
Equity earnings of unconsolidated joint ventures: |  |  |  |  |  |  |  |  |
United States |  |  | — |  |  | — |  |  | —
Foreign |  |  | (387) |  |  | 456 |  |  | 271
Income (loss) before income taxes |  | $ | (35,417) |  | $ | (30,595) |  | $ | (35,841)
Significant components of the provision for income taxes are as follows:
(Dollars in thousands) |  | 2024 |  | 2023 |  | 2022
Current income tax expense (benefit) |  |  |  |  |  |  |  |  |
Federal |  | $ | — |  | $ | (800) |  | $ | (97)
State |  |  | 42 |  |  | 49 |  |  | 19
Foreign |  |  | 1,441 |  |  | 927 |  |  | (487)
Total |  |  | 1,483 |  |  | 176 |  |  | (565)
Deferred income tax expense (benefit) |  |  |  |  |  |  |  |  |
Federal |  |  | 2 |  |  | 2 |  |  | 2
State |  |  | — |  |  | (2) |  |  | 2
Foreign |  |  | (1,004) |  |  | 414 |  |  | 1,380
Total |  |  | (1,002) |  |  | 414 |  |  | 1,384
Total income tax expense (benefit) |  | $ | 481 |  | $ | 590 |  | $ | 819
Deferred income taxes reflect the “temporary differences” between the financial statement carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, adjusted by the relevant tax rate. The components of the deferred tax assets and liabilities are as follows:
|  | December 31,
(Dollars in thousands) |  | 2024 |  | 2023
Deferred Tax Assets: |  |  |  |  |  |
Net operating loss carry-forwards |  | $ | 37,162 |  | $ | 31,820
Foreign Tax Credit |  |  | 3,743 |  |  | 3,743
Compensation and employee benefits |  |  | 3,210 |  |  | 2,972
Deferred revenue |  |  | 2,863 |  |  | 2,912
Accrued expenses |  |  | 22,926 |  |  | 18,221
Lease obligations |  |  | 39,477 |  |  | 47,666
Land and property |  |  | 3,450 |  |  | 2,412
Other |  |  | 51 |  |  | —
Total Deferred Tax Assets |  |  | 112,882 |  |  | 109,746
Deferred Tax Liabilities: |  |  |  |  |  |
Lease liabilities |  |  | (44,363) |  |  | (48,927)
Accrued taxes |  |  | (588) |  |  | (632)
Intangibles |  |  | (450) |  |  | (442)
Other |  |  | — |  |  | (359)
Total Deferred Tax Liabilities |  |  | (45,401) |  |  | (50,360)
Net deferred tax assets before valuation allowance |  |  | 67,480 |  |  | 59,386
Valuation allowance |  |  | (66,527) |  |  | (59,087)
Net deferred tax asset |  | $ | 953 |  | $ | 299
We record net deferred tax assets to the extent we believe these assets will more-likely-than-not be realized. In making such determination, we considered all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial performance. As of December 31, 2024, based on all available evidence, we believe the U.S. and state deferred tax assets do not support a conclusion of being more-likely-than-not to be realized. Accordingly, we recorded an increase to valuation allowance of $7.0 million. We reassess the valuation allowance quarterly and a tax benefit is recorded if future evidence allows for a partial or full release of the valuation allowance. As of December 31, 2024, we had the following carry-forwards: approximately $100.0 million in Federal loss carry-forwards with no expiration date; approximately $71.8 million in California loss carry-forwards expiring in 2044; approximately $40.7 million in Hawaii loss carry-forwards expiring in 2044; approximately $4.5 million in New Jersey state loss carry-forwards expiring in 2044; approximately $56.3 million in New York state loss carry-forwards expiring in 2044; approximately $48.0 million in New York city loss carry-forwards expiring in 2044; and, We expect no substantial limitations on the future use of U.S. loss carry-forwards. The provision for income taxes is different from amounts computed by applying U.S. statutory rates to consolidated losses before taxes. The significant reason for these differences is as follows:
(Dollars in thousands) |  | 2024 |  | 2023 |  | 2022
Expected tax provision |  | $ | (7,276) |  | $ | (6,425) |  | $ | (7,526)
Increase (decrease) in tax expense resulting from: |  |  |  |  |  |  |  |  |
Foreign tax rate differential |  |  | (399) |  |  | 30 |  |  | 384
Change in valuation allowance |  |  | 6,572 |  |  | 6,781 |  |  | 8,071
State and local tax provision |  |  | 42 |  |  | 48 |  |  | 21
Prior year adjustment |  |  | — |  |  | 472 |  |  | (405)
Unrecognized tax benefits |  |  | 308 |  |  | (398) |  |  | 75
Subpart F Income |  |  | 1,049 |  |  | — |  |  | —
Other |  |  | 185 |  |  | 82 |  |  | 199
Total income tax expense (benefit) |  | $ | 481 |  | $ | 590 |  | $ | 819
During the year, the Company completed an internal restructuring of its foreign subsidiaries resulting in a $1.0 million Subpart F income for U.S. income tax. The undistributed earnings of the Company's Australian subsidiaries are not indefinitely reinvested. Due to the enactment of the Tax Act, future repatriations of foreign earnings will generally not be subject to U.S. federal taxation but may incur minimal state taxes. The following table is a summary of the activity related to unrecognized tax benefits, excluding interest and penalties, for the years ended December 31, 2024, 2023, 2022:
(Dollars in thousands) |  | 2024 |  | 2023 |  | 2022
Unrecognized tax benefits – gross beginning balance |  | $ | 11,114 |  | $ | 11,454 |  | $ | 11,536
Gross increase (decrease) - prior year tax positions |  |  | — |  |  | (340) |  |  | (82)
Gross increase (decrease) - current year tax positions |  |  | — |  |  | — |  |  | —
Settlements |  |  | — |  |  | — |  |  | —
Unrecognized tax benefits – gross ending balance |  | $ | 11,114 |  | $ | 11,114 |  | $ | 11,454
As of December 31, 2024 and 2023, if recognized, $11.1 million and $11.1 million respectively, of the unrecognized tax benefits would impact the Company’s effective tax rate. During the year ended December 31, 2024, we recorded an increase to tax interest of $310,000, resulting in a total $801,000 in interest. During the year ended December 31, 2023, we recorded a decrease to tax interest of $151,000, resulting in a total $491,000 in interest. It is difficult to predict the timing and resolution of uncertain tax positions. Based upon the Company’s assessment of many factors, including past experience and judgments about future events, it is probable that within the next 12 months the reserve for uncertain tax positions will increase within a range of $500,000 to $1.5 million. The reasons for such change include but are not limited to tax positions expected to be taken during 2024, revaluation of current uncertain tax positions, and expiring statutes of limitations. As of December 31, 2024, federal income tax returns for 2021 and after are open for examination. California worldwide unitary income tax returns for 2020 and after are open for examination. The Company’s net operating loss carry-forwards are subject to examination until they are fully utilized or expired. Some of the tax years which the losses originated from are currently closed. Australia income tax returns for calendar years 2020 and after are open for examination. Generally, New Zealand returns for calendar years 2019 and after remain open for examination.

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 tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration