TAXATION (Tables)
|
12 Months Ended |
Dec. 31, 2022 |
|---|
| TAXATION |
|
| Schedule of provision for income taxes |
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
2022 |
|
2021 |
Current expense: |
|
|
|
|
|
|
Federal |
|
$ |
38,053 |
|
$ |
38,461 |
State |
|
|
8,881 |
|
|
7,359 |
Foreign |
|
|
– |
|
|
– |
Total current expense: |
|
|
46,934 |
|
|
45,820 |
Deferred expense (benefit): |
|
|
|
|
|
|
Federal |
|
|
(5,701) |
|
|
(13,414) |
State |
|
|
4,143 |
|
|
(3,145) |
Foreign |
|
|
(232) |
|
|
(2,981) |
Change in valuation allowance |
|
|
232 |
|
|
2,981 |
Total deferred (benefit): |
|
|
(1,558) |
|
|
(16,559) |
Total income tax expense: |
|
$ |
45,376 |
|
$ |
29,261 |
|
| Schedule of reconciliation between the effective tax rate on income from continuing operations and statutory tax |
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
|
2022 |
|
2021 |
|
Income (loss) before income taxes and noncontrolling interest |
|
$ |
(210,109) |
|
$ |
12,309 |
|
Statutory tax rates |
|
|
21 |
% |
|
21 |
% |
Expected income tax recovery |
|
|
(44,123) |
|
|
2,585 |
|
Difference in foreign tax rates |
|
|
(4,311) |
|
|
(672) |
|
State Taxes |
|
|
13,024 |
|
|
4,982 |
|
Foreign exchange gain or loss |
|
|
146 |
|
|
– |
|
Impairment loss |
|
|
31,191 |
|
|
– |
|
Translation Adjustment |
|
|
669 |
|
|
– |
|
Unrealized change in fair value of financial liabilities |
|
|
(13,248) |
|
|
– |
|
Acquisition costs |
|
|
147 |
|
|
1,857 |
|
Interest income inclusion |
|
|
4,244 |
|
|
– |
|
Non-deductible expenses |
|
|
61,072 |
|
|
18,235 |
|
Amortization of debt premium |
|
|
(815) |
|
|
– |
|
Tax rate change |
|
|
– |
|
|
(767) |
|
Prior year adjustment |
|
|
(2,877) |
|
|
– |
|
Valuation allowance |
|
|
232 |
|
|
2,981 |
|
Other |
|
|
25 |
|
|
60 |
|
Total income tax expense: |
|
$ |
45,376 |
|
$ |
29,261 |
|
|
| Schedule of components of deferred tax assets and liabilities |
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
2022 |
|
2021 |
Deferred tax assets |
|
|
|
|
|
|
Net operating losses |
|
$ |
9,515 |
|
$ |
7,967 |
Share issuance costs |
|
|
1,311 |
|
|
2,245 |
Share based compensation - included in cost of good sold |
|
|
1,385 |
|
|
– |
Investments |
|
|
– |
|
|
34 |
Inventory |
|
|
1,389 |
|
|
153 |
Other assets |
|
|
763 |
|
|
1,052 |
Total deferred tax assets |
|
|
14,363 |
|
|
11,451 |
Valuation allowance |
|
|
(8,784) |
|
|
(8,552) |
Total deferred tax assets |
|
|
5,579 |
|
|
2,899 |
Deferred tax liabilities |
|
|
|
|
|
|
Depreciation - included in cost of good sold |
|
|
(7,173) |
|
|
(6,071) |
Amortization - included in cost of good sold |
|
|
(65,642) |
|
|
(64,197) |
Debt financing costs |
|
|
(1,202) |
|
|
(1,821) |
Other liabilities |
|
|
(85) |
|
|
(891) |
Total deferred tax liability |
|
|
(74,102) |
|
|
(72,980) |
Net deferred tax liability |
|
$ |
(68,523) |
|
$ |
(70,081) |
|