Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

SCHEDULE OF INCOME (LOSS) BEFORE INCOME TAX (BENEFIT) EXPENSE

The components of (loss) income before income tax benefits by jurisdiction for continuing operations for the years ended December 31, consisted of the following (in thousands):


	2022			2021
United States		(2,782	)		(1,733	)
Canada		(630	)		(1,880	)
United Kingdom		(177	)		(246	)
Poland		—			1,061
Total loss before tax benefit	$	(3,589	)	$	(2,798	)

SCHEDULE OF COMPONENTS OF INCOME TAX (BENEFIT) EXPENSE

The components of current and deferred federal and state income tax (benefits) expense for continuing operations for the years ended December 31, consisted of the following (in thousands):


	2022			2021
Federal income tax benefit - deferred		(331	)		(3,503	)
State income tax expense (benefit) - current		12			(56	)
Foreign income tax expense - current		—			26
State income tax benefit - deferred		(59	)		(357	)
Total income tax benefit	$	(378	)	$	(3,890	)

SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION

An overall reconciliation between the expected tax benefit using the federal statutory rate of 21% for each of the years ended 2022 and 2021 and the benefit for income taxes from continuing operations as reported in the accompanying Consolidated Statement of Operations is provided below (in thousands).


	2022			2021
Federal tax benefit at statutory rate	$	(754	)	$	(588	)
State tax expense (benefit), net of federal benefit		5			(412	)
Change in deferred tax rates		20			(93	)
Permanent items		220			62
PPP Loan forgiveness		—			(1,130	)
Debt forgiveness (PFM Poland)		—			(518	)
Difference in foreign rate		(42	)		(135	)
True-up of deferred tax items		63			1,058
Other		—			(7	)
Increase (decrease) in valuation allowance		110			(2,127	)
Income tax benefit	$	(378	)	$	(3,890	)

SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES

The Company had temporary differences and net operating loss carry forwards from both our continuing and discontinued operations, which gave rise to deferred tax assets and liabilities at December 31, 2022 and 2021 as follows (in thousands):


Deferred tax assets:	2022			2021
Net operating losses	$	11,647		$	10,057
Environmental and closure reserves		2,269			2,040
Lease liability		482			575
Capital loss carryforward		756			740
Other		936			1,099
Deferred tax liabilities:
Depreciation and amortization		(4,351	)		(3,362	)
Indefinite lived intangible assets		(503	)		(464	)
Right-of-use lease asset		(476	)		(583	)
481(a) adjustment		(53	)		(104	)
Prepaid expenses		(30	)		(24	)
Deferred tax assets, gross		10,677			9,974
Valuation allowance		(6,560	)		(6,447	)
Net deferred income tax asset		4,117			3,527