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Income taxes

3 Months Ended

12 Months Ended

Mar. 31, 2024

Dec. 31, 2023

Income Taxes

Income taxes

Note 15 — Income Taxes

The Company has determined that a discrete year-to-date method of reporting would provide more reliable results for the quarters ended March 31, 2023, and March 31, 2024, due the difficulty in projecting future results.

The Company’s provision for income taxes was a $31 tax expense for the three months ended March 31, 2024, and a $15 tax benefit for the three months ended March 31, 2023. The Company maintains a valuation allowance on its deferred tax assets and intends to do so until there is sufficient evidence to support the reversal of all or some portion of this allowance.

For the three-month periods ended March 31, 2024, and 2023, the Company’s effective income tax rates were as follows:

​

​	​	​	​	​	​	​
​		2024			2023
Three months ended March 31,	​	​	(0.78)	%	(7.97)	%

​

The effective tax rates for the three-months periods ended March 31, 2024, and 2023, respectively, was below the U.S. statutory tax rate of 21% primarily due to losses generated by the Company and the Company’s valuation allowance.

During the first quarter ended March 31, 2024, the Company determined that it experienced an ownership change as defined under Internal Revenue Code Section 382. The result of the ownership change is subjecting tax attributes to an annual limitation which includes the utilization of the Company’s net operating losses. The Company will continue to monitor ownership changes throughout future periods.

Note 16 — Income taxes

The components of the provision for income taxes for the years ended December 31, 2023, and 2022 were as follows:

​

​	​	​	​	​	​	​
​		2023			2022
Current:	​	​	​	​	​	​
Federal	​	$	272	​	$	—
State	​		7	​		5
Total current	​		279	​		5
Deferred:	​		​	​
Federal	​		(71)	​		1,096
State	​		—	​		104
Total deferred	​		(71)	​		1,200
Total income tax provision	​	$	208	​	$	1,205

​

​	​	​	​	​	​	​
​		2023			2022
Deferred Tax Assets:	​	​	​	​	​	​
Impairment	​	$	1,134	​	$	1,147
Accruals	​		107	​		108
Reserves	​		52	​		75
Interest carryforward	​		31	​		31
Net operating losses	​		3,849	​		2,387
Other	​		60	​		40
Financial instruments	​	​	1,392	​	​	—
Start-up costs	​	​	982	​	​	—
UNICAP 263A	​		175	​		395
Valuation allowance	​		(7,011)	​		(3,583)
Total deferred tax assets	​	$	771	​		600
Deferred Tax Liabilities:	​	​	​	​	​	​
Prepaid Expense	​	$	(162)	​		(24)
Other	​		(30)	​		(157)
Depreciation	​		(597)	​		(509)
Total deferred tax liabilities	​		(789)	​		(690)
Deferred tax (liabilities) assets, net	​	$	(18)	​	$	(90)

​

The total provision for income taxes for the years ended December 31, 2023, and 2022 varies from the federal statutory rate as a result of the following:

​

​	​	​	​	​	​	​	​
​		2023			2022
Loss before income tax expense	​	$	(22,060)	​	$	(12,085)	​
Statutory tax rate	​		21	%		21	%
Income tax (benefit) expense at federal statutory rate	​		(4,633)	​		(2,538)	​
Increase (decrease) resulting from:	​		​	​			​
Permanent differences	​		2,300	​		494	​
State income tax, net of federal benefit	​		(177)	​		(343)	​
Valuation allowance	​		3,428	​		3,583	​
Other, net	​		(710)	​		9	​
Income tax expense	​		208	​		1,205	​
Current income tax expense	​		279	​		5	​
Deferred income tax (benefit)	​		(71)	​		1,200	​
Total	​	$	208	​	$	1,205	​

​

Deferred income taxes reflect the impact of temporary differences between the amount of assets and liabilities recognized for financial reporting purposes and such amounts recognized for tax purposes. As a result of the Company’s evaluation of both the positive and negative evidence, the Company determined it does not believe it is more likely than not that its deferred tax assets will be utilized in the foreseeable future and has recorded a valuation allowance. For the year ended December 31, 2023, the Company

recognized income tax expense because of a true-up on the federal tax payable and interest on late payment of the federal tax payable. For the year ended December 31, 2022, the Company recognized income tax expense because of a change in valuation allowance.

Changes in the valuation allowance are as follows:

​

​	​	​	​	​	​	​
​		2023			2022
Balance, beginning of the year	​	$	3,583	​	$	—
Additions to valuation allowance	​	​	3,428	​		3,583
Balance, end of the year	​	​	7,011	​		3,583

​

The Company intends to continue maintaining a valuation allowance on its deferred tax assets until there is sufficient evidence to support reversal of all or some portion of these allowances.

The Company reported U.S. net operating loss carryforwards of $16,771 and state net operating loss carryforward of $22,416. For state income tax purposes, the Company has $20,218 of net operating losses which are subject to expiration. The carryforward life for the net operating losses is dependent on the rules for each jurisdiction and therefore the losses are subject to expiration with the earliest year being 2033 and the latest year being 2044. The U.S. net operating loss carryforwards of $16,771 of federal and $2,198 of state NOLs will not expire. In addition, the Company also had U.S. interest limitation carryforwards of $133 with an indefinite expiration date.

A reconciliation of unrecognized tax benefits is as follows:

​

​	​	​	​	​	​	​
​		2023			2022
Balance, beginning of the year	​	$	—	​	$	—
Additions	​		—	​		—
Balance, end of the year	​		—	​		—

​

The Company recognizes interest and penalties related to unrecognized tax benefits within the provision for income taxes in the consolidated statement of operation and as of December 31, 2023, and 2022, the Company did not accrue interest and penalties. The Company does not expect its unrecognized tax benefits to change significantly in the next twelve months. We file income tax returns in the U.S. as well as in various states and the Company notes that the earliest year open to examination is 2020. The Company is not currently under examination by any major tax jurisdiction.

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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.

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