INCOME TAXES (Tables)
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12 Months Ended |
Dec. 31, 2021 |
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| Income Tax Disclosure [Abstract] |
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| Schedule of provision for income taxes |
The provision for income taxes consists of the following:
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Year Ended December 31, |
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2021 |
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2020 |
|
2019 |
| Current: |
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| Federal |
$ |
1,429 |
|
|
$ |
1,537 |
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|
$ |
532 |
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| State and Local |
350 |
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|
168 |
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|
109 |
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| Total Current Provision |
$ |
1,779 |
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|
$ |
1,705 |
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|
$ |
641 |
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| Deferred: |
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| Federal |
$ |
— |
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|
$ |
— |
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|
$ |
— |
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| State and Local |
— |
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|
— |
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|
— |
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| Total Deferred Provision |
$ |
— |
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|
$ |
— |
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|
$ |
— |
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| Total Provision for Income Taxes |
$ |
1,779 |
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|
$ |
1,705 |
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|
$ |
641 |
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| Summary of reconciliation of the unrecognized tax benefits |
A reconciliation of the unrecognized tax benefits is as follows:
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| Balance as of December 31, 2020 |
$ |
1,196 |
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| Decrease due to expiration of statue of limitations |
(568) |
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| Balance as of December 31, 2021 |
$ |
628 |
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| Schedule of effective income tax reconciliation |
The difference between the Company's reported provision for income taxes and the U.S. federal statutory rate of 21% is as follows:
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December 31, |
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2021 |
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2020 |
|
2019 |
| Provision at the statutory rate |
21.00 |
% |
|
21.00 |
% |
|
21.00 |
% |
| Permanent items |
(0.57) |
% |
|
(0.56) |
% |
|
(0.17) |
% |
| Excess Inclusion Income |
(7.39) |
% |
|
(2.80) |
% |
|
(0.45) |
% |
| State and local taxes |
(0.63) |
% |
|
(0.24) |
% |
|
(0.16) |
% |
| Valuation allowance |
(20.60) |
% |
|
(20.61) |
% |
|
(21.11) |
% |
| Unrecognized tax benefits |
1.94 |
% |
|
(0.01) |
% |
|
(0.86) |
% |
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| Other |
— |
% |
|
0.11 |
% |
|
0.57 |
% |
| Total Benefit (Expense) |
(6.25) |
% |
|
(3.11) |
% |
|
(1.18) |
% |
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| Schedule of deferred tax assets |
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2021 and 2020 are presented below:
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December 31, |
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2021 |
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2020 |
| Deferred tax assets: |
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| Allowance for loan losses |
$ |
285 |
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$ |
283 |
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| Depreciation and amortization |
5,600 |
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|
8,158 |
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| Accrued expenses |
878 |
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|
2,956 |
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| Interest |
3,610 |
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|
3,757 |
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| Operating lease liabilities |
57,002 |
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|
59,804 |
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| Net operating losses |
142,875 |
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|
126,163 |
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| Capital losses |
7,625 |
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|
7,749 |
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| Deferred revenue |
3,804 |
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|
1,956 |
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| Investment in Partnership |
5,245 |
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|
5,330 |
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| Impairment Loss |
2,671 |
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|
1,822 |
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| Other |
585 |
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|
1,342 |
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| Total deferred tax assets |
230,180 |
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|
219,320 |
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| Less valuation allowance |
(169,675) |
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|
(152,884) |
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| Net deferred tax assets |
$ |
60,505 |
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$ |
66,436 |
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| Deferred tax liabilities: |
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| Operating lease right-of-use assets |
56,971 |
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|
61,467 |
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| Membership deposit liabilities |
3,534 |
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|
4,969 |
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| Total deferred tax liabilities |
$ |
60,505 |
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$ |
66,436 |
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| Net deferred tax assets |
$ |
— |
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$ |
— |
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| Schedule of change in deferred tax asset valuation allowance |
The following table summarizes the change in the deferred tax asset valuation allowance:
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| Valuation allowance at December 31, 2020 |
$ |
152,884 |
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| Increase due to current year operations |
16,791 |
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| Valuation allowance at December 31, 2021 |
$ |
169,675 |
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