Better Choice Company Inc. Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Income taxes (Tables)

Income taxes (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Effective Income Tax Rate Reconciliation

The following table is a reconciliation of the components that caused the Company’s provision for income taxes to differ from amounts computed by applying the U.S. federal statutory rate of 21% (in thousands):

	Years Ended December 31,
	2024					2023
Statutory U.S. Federal income tax	$	(34	)	21.0	%	$	(4,782	)	21.0	%
State income taxes, net		280		(177.0	)%		(309	)	1.3	%
Meals and entertainment		5		(3.1	)%		5		– %
Change in valuation allowance		(243	)	153.4	%		5,031		(22.1	)%
Warrant valuation		–		–	%		50		(0.2	)%
Tax effect of non-deductible equity instruments		–		–	%		–		–	%
Return to provision adjustment		–		–	%		5		–	%
Other		1		(0.4	)%		2		–	%
Total provision	$	9		(6.1	)%	$	2		0.0	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):


	December 31,
	2024			2023
Deferred income tax assets:
Net operating loss carryforwards	$	21,460		$	21,662
ROU assets		15			28
Share-based compensation		5,240			5,320
Inventory		65			68
Other assets		2,529			2,508
Gross deferred tax assets		29,309			29,586
Valuation allowance		(29,268	)		(29,509	)
Net deferred tax assets	$	41		$	77
Deferred income tax liabilities:
Fixed assets		(27	)		(50	)
Operating lease liabilities		(14	)		(27	)
Intangibles		–			–
Total deferred tax liabilities	$	(41	)	$	(77	)
Deferred tax liabilities, net of valuation allowance	$	–		$	–

Schedule of Valuation Allowance

Changes in valuation allowance are as follows (in thousands):

Schedule of Valuation Allowance


	Years Ended December 31,
	2024			2023
Valuation allowance, at beginning of year	$	29,509		$	24,479
Change in valuation allowance		(241	)		5,030
Valuation allowance, at end of year	$	29,268		$	29,509