As of December 30, 2024, what was the value of Checkers' net operating loss carryforwards?

The Company has several sale-leaseback arrangements in effect for land and buildings for certain store locations. However, these transactions did not qualify for sale accounting under the guidance in ASC 842 and were therefore accounted for as financing transactions. As a result, the Company continues to recognize the restaurant properties on its consolidated balance sheets and has recorded the proceeds received from the buyer-lessor as a financial liability. As of December 30, 2024 (Successor), and January 1, 2024 (Successor), there were approximately $7.9 million and $7.9 million, respectively, of financing obligations recorded within the accompanying consolidated balance sheets.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

NOTE 12 - INCOME TAXES

Prior to the Out-of-Court Restructuring, BossCo Holdings filed a consolidated federal and state (where appropriate) income tax returns which included the Company. As noted in Note 1, the Out-of-Court Restructuring, on June 16, 2023, resulted in BossCo Holdings deconsolidating which included the Company. As part of the Out-of-Court Restructuring, which was accounted for as a business combination, the Company recognized the deferred tax asset and liabilities based on the difference in the fair values of the assets and liabilities acquired end their tax basis. In addition, as part of the Out-of-Court Restructuring, the Company reassessed its tax attributes and recognized a reduction in tax attributes no longer available to the Company.

The Company accounts for income taxes in accordance with the provisions of ASC 740, Income Taxes, which requires the Company to recognize income tax benefits and expense of the changes in income tax assets and liabilities. Deferred tax assets must be reduced by a valuation allowance in certain circumstances. Realization of deferred tax assets is dependent on generating sufficient taxable income prior to the expiration of any tax attributes. The deferred tax assets are reviewed periodically for recoverability and valuation allowances are adjusted as necessary. After reviewing all relevant factors, including cumulative losses during the last three years, management believes that it is more likely than not that a portion of the Company's deferred tax assets will not be realized in a future period. As of December 30, 2024 (Successor) and January 1, 2024 (Successor), the valuation allowance has been adjusted to the amount of deferred tax assets, net of reversing deferred tax liabilities, that management believes will not be realized.

Under ASC 740, Income Taxes, the tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and liabilities recognized within "deferred income tax liabilities" in the accompanying consolidated balance sheets as of December 30, 2024 (Successor) and January 1, 2024 (Successor) were as follows:

| | For the Year Ended December 30, 2024 (Successor) | For the Period Ended Januar

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)