Company: FWRG
Filing Date: 2025-04-08
Form Type: ARS
Source: 0001789940-25-000033
Chunk: 119

Company: First Watch Restaurant Group, Inc.
Filing Date: 2025-04-08
Form: ARS
Chunk 119
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5,000,000 shares of common stock from time to time in one or more offerings. The Company revalued the contingent consideration liability initially recognized in connection with the Advent Acquisition (see Note 14, Income Taxes, for additional information) and recorded a gain of $0.6 and a loss of $0.2 million in Fiscal 2024 and Fiscal 2022, respectively. There was no revaluation adjustment recorded for the contingent liability in Fiscal 2023. 14. Income Taxes Income tax expense consisted of the following: FISCAL YEAR (in thousands) 2024 2023 2022 Current provision: Federal $ (326) $ (217) $ — State (1,952) (2,158) (1,007) Total current provision (2,278) (2,375) (1,007) Deferred provision: Federal (7,031) (8,896) (4,562) State 208 581 (115) Total deferred provision (6,823) (8,315) (4,677) Income tax expense $ (9,101) $ (10,690) $ (5,684) A reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate is as follows: FISCAL YEAR 2024 2023 2022 Income taxes at federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax effect 5.9 5.8 12.5 FICA tip credit (30.3) (19.9) (44.2) Other tax credits (0.2) — — Valuation allowance for federal and state 34.1 17.6 46.7 Stock-based compensation 1.8 3.4 4.2 Secondary Offerings - costs 1.0 0.6 3.2 Other permanent items 0.4 0.5 0.6 Rate change (0.5) 0.6 1.7 Other (0.7) — (0.6) Total 32.5 % 29.6 % 45.1 % The effective income tax rate for Fiscal 2024, Fiscal 2023 and Fiscal 2022 was different than the blended federal and state statutory rate mainly due to (i) the change in the valuation allowance on deferred tax assets, (ii) the benefit of tax credits for F