Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

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

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

	2023			2022
United States		622			(2,782	)
Canada		521			(630	)
United Kingdom		(208	)		(177	)
Total income (loss) before tax benefit	$	935		$	(3,589	)

SCHEDULE OF COMPONENTS OF INCOME TAX (BENEFIT) EXPENSE

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

	2023			2022
Federal income tax expense - current		76			—
Federal income tax benefit - deferred		(28	)		(331	)
State income tax expense - current		7			12
State income tax benefit - deferred		(38	)		(59	)
Total income tax expense (benefit)	$	17		$	(378	)

SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION

An overall reconciliation between the expected tax expense (benefit) using the federal statutory rate of 21% for each of the years ended 2023 and 2022 and the expense (benefit) for income taxes from continuing operations as reported in the accompanying Consolidated Statement of Operations is provided below (in thousands).


	2023			2022
Federal tax expense (benefit) at statutory rate	$	196		$	(754	)
State tax expense, net of federal benefit		50			5
Difference in foreign rate		20			(42	)
Permanent items		116			133
Change in deferred tax rates		51			20
Reserve for uncertain tax positions		81			—
Tax credits		(318	)		—
Stock-based compensation		100			93
Provision-to-return adjustments		155			52
Other		—			5
(Decrease) increase in valuation allowance		(434	)		110
Income tax expense (benefit)	$	17		$	(378	)

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 as of December 31, 2023, and 2022 as follows (in thousands):

	2023			2022
Deferred tax assets:
Net operating losses	$	9,876		$	11,646
Environmental and closure reserves		2,332			2,269
Lease liability		525			482
Capital loss carryforward		780			756
Accrued expenses		1,186			776
R&D cost capitalization		905			25
Tax credits		200			135
Deferred tax liabilities:
Depreciation and amortization		(4,260	)		(4,351	)
Indefinite lived intangible assets		(557	)		(503	)
Right-of-use lease asset		(510	)		(476	)
481(a) adjustment		—			(53	)
Prepaid expenses		(46	)		(30	)
Deferred tax assets, gross		10,431			10,676
Valuation allowance		(6,131	)		(6,560	)
Net deferred income tax asset		4,300			4,116

SCHEDULE OF RECOGNIZED TAX EXPENSES

The Company accounts for uncertainties in income tax pursuant to ASC 740. A reconciliation of the beginning and ending amount of our recognized tax expense is summarized as follows (in thousands):

SCHEDULE OF RECOGNIZED TAX EXPENSES

	2023		2022
Balances at beginning of year	$	—	$	—
Addition related to R&D tax credit		81		—
Balances at end of the year	$	81	$	—