Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.24.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of Income (Loss) Before Income Tax
Loss before income taxes includes the following components for the fiscal years ended December 31, 2023, December 25, 2022, and December 26, 2021 (in thousands):
2023 2022 2021
U.S. $ (20,894) $ (77,976) $ (50,419)
Foreign (24) (160) (176)
Loss before income taxes $ (20,918) $ (78,136) $ (50,595)
Schedule of Provision (Benefit) for Income Taxes
The expense (benefit) for income taxes for the fiscal years ended December 31, 2023, December 25, 2022, and December 26, 2021 consist of the following (in thousands):
2023 2022 2021
Current:
Federal $ 37  $ 374  $ — 
State 273  373  (152)
Foreign —  —  — 
Total current income tax expense (benefit) $ 310  $ 747  $ (152)
Deferred:    
Federal $ —  $ —  $ — 
State —  —  — 
Foreign —  —  — 
Total deferred income tax expense (benefit) —  —  — 
Income tax expense (benefit), net $ 310  $ 747  $ (152)
Schedule of Reconciliation of Income Tax Provision that would Result from Applying the Federal Statutory Rate to Income Tax Provision
The reconciliation between the income tax expense (benefit) and the amount of income tax computed by applying the U.S. federal statutory rate to loss before income taxes as shown in the accompanying Consolidated Statements of Operations and Comprehensive Loss for fiscal years ended December 31, 2023, December 25, 2022, and December 26, 2021 is as follows:
2023 2022 2021
Tax provision at U.S. federal statutory rate 21.0  % 21.0  % 21.0  %
State income taxes 4.2  4.0  3.8 
FICA tip tax credits —  —  — 
Foreign taxes versus U.S statutory rate —  —  — 
Valuation allowance on deferred income tax assets (22.3) (24.2) (25.2)
Impact of CARES Act and related method changes —  —  — 
Other tax credits —  —  — 
Meals and entertainment —  —  — 
Excess stock options (3.3) (1.1) 1.1 
Employee travel —  —  — 
Other (1.1) (0.7) (0.4)
Effective tax rate (1.5) % (1.0) % 0.3  %
Schedule of the Company's Total Deferred Tax Assets and Liabilities
The Company's federal and state deferred taxes at December 31, 2023 and December 25, 2022 are as follows (in thousands):
2023 2022
Deferred tax assets:
Leasing transactions $ 113,963  $ 115,832 
General business and other tax credits 40,441  40,802 
Net operating loss carryover 44,131  47,847 
Accrued compensation and related costs 5,361  8,651 
Goodwill 7,244  7,851 
Stock-based compensation 6,333  7,309 
Advanced payments 628  1,371 
Interest expense 11,345  5,247 
Other non-current deferred tax assets 2,478  3,479 
Subtotal 231,924  238,389 
Valuation allowance (119,861) (115,790)
Total $ 112,063  $ 122,599 
Deferred tax liabilities:
Leasing transactions $ (97,386) $ (97,871)
Property and equipment (1,242) (11,550)
Supplies inventory (4,415) (4,047)
Prepaid expenses (1,472) (1,906)
Other non-current deferred tax liabilities (7,548) (7,225)
Total $ (112,063) $ (122,599)
Net deferred tax asset $ —  $ — 
Schedule of the Company's Unrecognized Tax Benefits
The following table summarizes the Company's unrecognized tax benefits at December 31, 2023, December 25, 2022, and December 26, 2021 (in thousands):
2023 2022 2021
Beginning of year $ 185  $ 32  $ 80 
Increase due to current year tax positions —  177  3 
Due to decrease to a position taken in a prior year —  —  — 
Settlements —  —  — 
Reductions related to lapses in the statute of limitations —  (24) (51)
End of year $ 185  $ 185  $ 32