Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.22.2.2
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Schedule of provision for income taxes
The provision for income taxes consists of the following:
Year Ended December 31,
2021 2020 2019
Current:
Federal $ 1,429  $ 1,537  $ 532 
State and Local 350  168  109 
Total Current Provision $ 1,779  $ 1,705  $ 641 
Deferred:
Federal $ —  $ —  $ — 
State and Local —  —  — 
Total Deferred Provision $ —  $ —  $ — 
Total Provision for Income Taxes $ 1,779  $ 1,705  $ 641 
Summary of reconciliation of the unrecognized tax benefits
A reconciliation of the unrecognized tax benefits is as follows:
Balance as of December 31, 2020 $ 1,196 
Decrease due to expiration of statue of limitations (568)
Balance as of December 31, 2021 $ 628 
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:
December 31,
2021 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) %
Other —  % 0.11  % 0.57  %
Total Benefit (Expense) (6.25) % (3.11) % (1.18) %
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:
December 31,
2021 2020
Deferred tax assets:
Allowance for loan losses $ 285  $ 283 
Depreciation and amortization 5,600  8,158 
Accrued expenses 878  2,956 
Interest 3,610  3,757 
Operating lease liabilities 57,002  59,804 
Net operating losses 142,875  126,163 
Capital losses 7,625  7,749 
Deferred revenue 3,804  1,956 
Investment in Partnership 5,245  5,330 
Impairment Loss 2,671  1,822 
Other 585  1,342 
Total deferred tax assets 230,180  219,320 
Less valuation allowance (169,675) (152,884)
Net deferred tax assets $ 60,505  $ 66,436 
Deferred tax liabilities:
Operating lease right-of-use assets 56,971  61,467 
Membership deposit liabilities 3,534  4,969 
Total deferred tax liabilities $ 60,505  $ 66,436 
Net deferred tax assets $ —  $ — 
Schedule of change in deferred tax asset valuation allowance
The following table summarizes the change in the deferred tax asset valuation allowance:
Valuation allowance at December 31, 2020 $ 152,884 
Increase due to current year operations 16,791 
Valuation allowance at December 31, 2021 $ 169,675