Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.22.4
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
SCHEDULE OF PRETAX INCOME FROM CONTINUING OPERATIONS

 

      1       2         3  
(in thousands, except percentage data)   2022    

2021

(Restated)

    2020  
Federal income tax expense (benefit) at the statutory rate     (21.0 )%   $ (148,801 )     (21.0 )%   $ (3,144 )     (21.0 )%   $ (2,230 )
State income taxes, net of federal tax expense     (1.6 )%     (11,153 )     49.5 %     7,531       (7.0 )%     (745 )
Executive compensation deduction limitation     1.0 %     7,358       199.0 %     30,213       4.2 %     444  
Excess tax benefit related to share-based compensation     %     285       (12.6 )%     (1,909 )     %      
Nondeductible other expenses     %     14       1.5 %     225       %      
Change in valuation allowance     18.4 %     130,527       (95.3 )%     (14,477 )     23.9 %     2,533  
Prior year true-ups     %     130       28.2 %     4,281       %      
Other, net     %     (198 )     (1.0 )%     (144 )     %      
Income tax expense (benefit) from continuing operations     (3.2 )%   $ (21,838 )     148.3 %   $ 22,576       0.1 %   $ 2  
SCHEDULE OF PROVISION FOR INCOME TAXES

The components of the provision for income taxes are as follows:

 

(in thousands)  

December 31,

2022

   

December 31,

2021

(Restated)

   

December 31,

2020

 
Current income tax expense (benefit)                        
Federal   $     $     $  
State     734       2       2  
Total current income tax expense     734       2       2  
                         
Deferred expense                        
Federal     (141,613 )     29,523        
State     (11,486 )     7,528        
Total deferred tax expense (benefit)     (153,099 )     37,051       9,080  
                         
Change in valuation allowance     130,527       (14,477 )     (9,080 )
                         
Net deferred tax expense after valuation allowance (benefit)     (22,572 )     22,574        
                         
Income tax provision (benefit)   $ (21,838 )   $ 22,576     $ 2  
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2022 and 2021 are presented below:

 

(in thousands)  

December 31,

2022

   

December 31,

2021

(Restated)

 
Deferred tax assets:                
Tax credit carryforwards   $ 386     $ 163  
Net operating loss carryforwards     48,703       25,603  
Intangible assets     1,727       1,055  
Stock compensation     2,133       447  
Digital assets     50,106       7,446  
Disallowed Interest     2,215        
Bad debt reserve     10,039        
Research and development costs     541        
Accruals, reserves and other     239       269  
Loan reserve           209  
Impairment loss     36,397        
Total gross deferred tax assets     152,486       35,192  
Less valuation allowance     (130,527 )      
                 
Net deferred tax assets     21,959       35,192  
                 
Deferred tax liabilities:                
Unrealized gains           (18,428 )
Prepaid service contracts           (4,395 )
Property and equipment     (21,959 )     (34,944 )
Total gross deferred liabilities     (21,959 )     (57,767 )
Net deferred tax liability   $   $ (22,575 )
SCHEDULE OF ATTRIBUTES AND CREDIT CARRYFORWARDS

In addition, the Company has the following attributes and credit carryforwards:

 

(in thousands)   Gross Amount     Expiring  
Federal net operating loss carryforwards   $ 3,314       2034-2035  
Federal net operating loss carryforwards - indefinite life   $ 214,189       Indefinite  
State net operating loss carryforwards   $ 46,983       Various  
Interest carryforwards   $ 10,076       Indefinite  
SCHEDULE OF UNRECOGNIZED TAX BENEFITS ROLL FORWARD

A reconciliation of the beginning and ending amount of total unrecognized tax benefits for the tax years ended December 31, 2022, and 2021 is as follows:

 

(in thousands)  

December 31,

2022

   

December 31,

2021

(Restated)

   

December 31,

2020

 
Balance, beginning of year   $ 44     $     $  
Increase related to prior year tax positions     21       25        
Increase related to current year tax positions     5,187       19        
Balance, end of year   $ 5,252     $ 44     $  
SCHEDULE OF NET OPERATING LOSS CARRYFORWARDS

  

(in thousands)   Gross Amount     Expiring  
Federal net operating loss carryforwards   $ 345,336       2040-2042  
Federal net operating loss carryforwards - indefinite life   $ 40,457