Better Choice Company Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Income taxes (Tables)

Income taxes (Tables)

12 Months Ended

Dec. 31, 2023

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,
	2023					2022
Statutory U.S. Federal income tax	$	(4,782	)	21.0	%	$	(8,260	)	21.0	%
State income taxes, net		(309	)	1.3	%		(167	)	0.4	%
Meals and entertainment		5		—	%		—		—	%
Change in valuation allowance		5,031		(22.1	)%		5,384		(13.7	)%
Goodwill impairment		—		—	%		3,802		(9.7	)%
Warrant valuation		50		(0.2	)%		—		—	%
Tax effect of non-deductible equity instruments		—		—	%		—		0.1	%
Return to provision adjustment		5		—	%		(5	)	—	%
Other		2		—	%		(772	)	2.0	%
Total provision	$	2		0.0	%	$	(18	)	0.1	%

Schedule of Deferred Tax Assets and Liabilities

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

	2023			2022
	December 31,
	2023			2022
Deferred income tax assets:
Net operating loss carryforwards	$	21,662		$	19,182
ROU assets		28			42
Share-based compensation		5,320			5,251
Inventory		68			157
Other assets		2,508			2,306
Gross deferred tax assets		29,586			26,938
Valuation allowance		(29,509	)		(24,479	)
Net deferred tax assets	$	77		$	2,459
Deferred income tax liabilities:
Fixed assets		(50	)		(86	)
Operating lease liabilities		(27	)		(41	)
Intangibles		—			(2,332	)
Deferred tax liabilities, net of valuation allowance	$	—		$	—

Schedule of Valuation Allowance

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

Schedule of Valuation Allowance

	2023		2022
	Years Ended December 31,
	2023		2022
Valuation allowance, at beginning of year	$	24,479	$	19,095
Increase in valuation allowance		5,030		5,384
Valuation allowance, at end of year	$	29,509	$	24,479