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Income Taxes | 12 Months Ended
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Jan. 01, 2022
Income Taxes |
Income Taxes | Note 7 – Income Taxes The components of loss before income taxes consist of the following:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Fiscal Year Ended
​ |  | January 1, 2022 |  | January 2, 2021 | ​ | December 28, 2019
Domestic operations | ​ | $ | (10,460) | ​ | $ | (1,738) | ​ | $ | (10,618)
Foreign operations | ​ |  | 472 | ​ |  | 532 | ​ |  | 507
Total loss before income taxes | ​ | $ | (9,988) | ​ | $ | (1,206) | ​ | $ | (10,111)
​ The income tax provision consists of the following:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Fiscal Year Ended
​ |  | January 1, 2022 |  | January 2, 2021 | ​ | December 28, 2019
Current: |  | ​ |  |  | ​ | ​ | ​ | ​ |
Federal tax | ​ | $ | — | ​ | $ | 50 | ​ | $ | —
State tax | ​ | ​ | 68 | ​ | ​ | 80 | ​ | ​ | 6
Foreign tax | ​ |  | 283 | ​ | ​ | 177 | ​ |  | 144
Total current taxes | ​ |  | 351 | ​ |  | 307 | ​ |  | 150
Deferred: | ​ |  |  | ​ | ​ | ​ | ​ |  |
Federal tax | ​ |  | (6,628) | ​ | ​ | (453) | ​ |  | (1,311)
State tax | ​ |  | (407) | ​ | ​ | (225) | ​ |  | (417)
Total deferred taxes | ​ |  | (7,035) | ​ |  | (678) | ​ |  | (1,728)
Valuation allowance | ​ |  | 7,035 | ​ |  | 678 | ​ |  | 23,015
Income tax provision | ​ | $ | 351 | ​ | $ | 307 | ​ | $ | 21,437
​ Income tax provision differs from the amount that would result from applying the federal statutory rate as follows:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | January 1, 2022 |  | January 2, 2021 | ​ | December 28, 2019
Income tax at U.S. federal statutory rate | ​ | $ | (2,098) | ​ | $ | (253) | ​ | $ | (2,123)
Tax attributes written off | ​ |  | — | ​ | ​ | 50 | ​ |  | —
Share-based compensation | ​ |  | (4,602) | ​ | ​ | (318) | ​ |  | 729
State income tax, net of federal tax effect | ​ |  | (269) | ​ | ​ | (115) | ​ |  | (325)
Foreign tax | ​ |  | 243 | ​ | ​ | 144 | ​ |  | 106
Other | ​ |  | 42 | ​ | ​ | 121 | ​ |  | 35
Change in valuation allowance | ​ |  | 7,035 | ​ | ​ | 678 | ​ |  | 23,015
Effective tax provision | ​ | $ | 351 | ​ | ​ | 307 | ​ | $ | 21,437
​ For fiscal years 2021, 2020 and 2019, the effective tax rate for the Company was (3.5)%, (25.4)% and (212.0)%, respectively. The Company’s effective tax rate for fiscal years 2021, 2020 and 2019 differs from the U.S. federal rate primarily as a result of non-deductible share-based compensation, the write-off of expired state net operating loss carryforwards, and the change in the valuation allowance maintained against the Company’s deferred tax assets. Deferred tax assets and deferred tax liabilities consisted of the following:
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | January 1, 2022 |  | January 2, 2021
Deferred tax assets: |  | ​ |  |  | ​ |
Inventory and inventory related allowance | ​ | $ | 1,373 | ​ | $ | 1,082
Lease liabilities | ​ | ​ | 10,830 | ​ | ​ | 7,311
Share-based compensation | ​ |  | 3,108 | ​ |  | 2,102
Book over tax depreciation | ​ | ​ | — | ​ | ​ | 468
Intangibles | ​ |  | 161 | ​ |  | 660
Sales and bad debt allowances | ​ |  | 1,021 | ​ |  | 1,044
Accrued compensation | ​ |  | 445 | ​ |  | 436
Net operating loss | ​ |  | 32,102 | ​ |  | 24,131
Other | ​ |  | 210 | ​ |  | 186
Total deferred tax assets | ​ |  | 49,250 | ​ |  | 37,420
Valuation allowance | ​ |  | (37,637) | ​ |  | (30,516)
Net deferred tax assets | ​ |  | 11,613 | ​ |  | 6,904
Deferred tax liabilities: | ​ |  |  | ​ |  |
Right-of-use assets | ​ | ​ | 10,203 | ​ | ​ | 6,879
Tax over book depreciation | ​ |  | 1,410 | ​ |  | —
Other | ​ |  | — | ​ |  | 25
Total deferred tax liabilities | ​ |  | 11,613 | ​ |  | 6,904
Net deferred tax assets | ​ | $ | — | ​ | $ | —
​ As of January 1, 2022, federal and state net operating loss (“NOL”) carryforwards were $116,705 and $85,964, respectively. Federal NOL carryforwards of $1,295 were acquired in the acquisition of WAG which are subject to Internal Revenue Code section 382 and limited to an annual usage limitation of $135. Federal NOL carryforwards begin to expire in 2029, while state NOL carryforwards begin to expire in 2022. The state NOL carryforwards expire in the respective tax years as follows:
​ | ​ | ​ | ​
2022 |  | $ | 975
2023 | ​ |  | 3,013
2024 | ​ |  | 2,368
2025 | ​ |  | 3,326
2026 | ​ |  | 2,982
Thereafter | ​ |  | 73,300
​ | ​ | $ | 85,964
​ Under the provisions of ASC 740, management is required to evaluate whether a valuation allowance should be established against its deferred tax assets based on the consideration of all available evidence using a “more likely than not” standard. Realization of deferred tax assets is dependent upon taxable income in prior carryback years, estimates of future taxable income, tax planning strategies, and reversal of existing taxable temporary differences. ASC 740 provides that forming a conclusion that a valuation allowance is not needed is difficult when there is negative evidence such as cumulative losses in recent years or losses expected in early future years. As of January 1, 2022, mainly due to cumulative losses in recent years, the Company maintained a valuation allowance in the amount of $37,637 against deferred tax assets that were not more likely than not of being realized. We are subject to U.S. federal income tax as well as income tax of foreign and state tax jurisdictions. The tax years 2016-2021 remain open to examination by the major taxing jurisdictions to which the Company is subject, except the Internal Revenue Service for which the tax years 2017-2021 remain open. The Company does not anticipate a significant change to the amount of unrecognized tax benefits within the next twelve months. Included in accrued expenses are income taxes payable of $145 and $119 as of January 1, 2022 and January 2, 2021, respectively, consisting primarily of current foreign taxes. Included in other non-current liabilities are income taxes payable of $803 and $702 as of January 1, 2022 and January 2, 2021, respectively, relating to accrued future foreign withholding taxes.

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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 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
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