Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.23.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Summary of Income Tax Current and Deferred Provision

The following table presents the current and deferred provision for income taxes for the years ended December 31 (in thousands):

 

 

 

2022

 

 

2021

 

 

2020

 

Current:

 

 

 

 

 

 

 

 

 

Federal

 

$

 

 

$

 

 

$

 

State

 

 

40

 

 

 

17

 

 

 

26

 

Foreign

 

 

70

 

 

 

47

 

 

 

101

 

 

 

 

110

 

 

 

64

 

 

 

127

 

Deferred:

 

 

 

 

 

 

 

 

 

Federal

 

 

 

 

 

 

 

 

 

State

 

 

 

 

 

 

 

 

 

Foreign

 

 

(1

)

 

 

1

 

 

 

1

 

 

 

 

(1

)

 

 

1

 

 

 

1

 

 

 

$

109

 

 

$

65

 

 

$

128

 

Federal Income Tax Provision Compared With Statutory Rates

The provision for income taxes differs from the amount that would result from applying the federal statutory rate as follows for the years ended December 31:

 

 

 

2022

 

 

 

2021

 

 

 

2020

 

 

Statutory regular federal income tax rate

 

 

(21.0

)

%

 

 

(21.0

)

%

 

 

(21.0

)

%

Change in valuation allowance

 

 

(92.8

)

%

 

 

34.2

 

%

 

 

(6.8

)

%

State tax benefit (net of federal benefit)

 

 

(3.9

)

%

 

 

(4.8

)

%

 

 

(4.8

)

%

Research credits

 

 

 

%

 

 

(0.6

)

%

 

 

0.6

 

%

Foreign amounts with no tax benefit

 

 

0.1

 

%

 

 

 

%

 

 

(0.1

)

%

Non-deductible expenses

 

 

0.6

 

%

 

 

(4.2

)

%

 

 

(4.1

)

%

Effect of change in rate

 

 

4.5

 

%

 

 

 

%

 

 

9.7

 

%

Expired net operating loss carryforwards

 

 

 

%

 

 

 

%

 

 

3.7

 

%

Net operating loss 382 write-offs

 

 

113.4

 

%

 

 

 

%

 

 

 

%

Effect of prior year true-ups

 

 

(1.2

)

%

 

 

(4.3

)

%

 

 

22.8

 

%

Other

 

 

0.6

 

%

 

 

1.1

 

%

 

 

0.7

 

%

Total

 

 

0.3

 

%

 

 

0.4

 

%

 

 

0.7

 

%

 

 

Summary of Net Deferred Tax Assets and Net Deferred Tax Liabilities

The components of the deferred income tax assets and liabilities as of December 31 (in thousands):

 

 

 

2022

 

 

2021

 

Capitalized intangible assets for tax purposes

 

$

(38

)

 

$

(38

)

Reserves not currently deductible

 

 

2,409

 

 

 

1,903

 

Deferred revenue

 

 

106

 

 

 

640

 

Stock options

 

 

1,500

 

 

 

903

 

State taxes

 

 

6

 

 

 

5

 

Income tax credits

 

 

1,496

 

 

 

3,429

 

Inventory

 

 

1,024

 

 

 

771

 

Property and equipment

 

 

186

 

 

 

192

 

Unrealized gain on foreign currency

 

 

113

 

 

 

105

 

Disallowed Interest

 

 

2,167

 

 

 

1,757

 

Lease liability

 

 

475

 

 

 

462

 

Capitalized research or experimental expenses

 

 

1,456

 

 

 

 

Net operating losses

 

 

21,665

 

 

 

18,425

 

Total deferred tax assets

 

 

32,565

 

 

 

28,554

 

Valuation allowance

 

 

(31,235

)

 

 

(27,261

)

Net deferred tax assets

 

 

1,330

 

 

 

1,293

 

Capitalized intangible assets

 

 

(664

)

 

 

(664

)

Right of use asset

 

 

(442

)

 

 

(428

)

Other

 

 

(190

)

 

 

(144

)

Total deferred tax liabilities

 

 

(1,296

)

 

 

(1,236

)

Net deferred tax assets

 

$

34

 

 

$

57

 

 

Summary of Unrecognized Tax Benefits

The following table summarizes the activity related to the Company’s unrecognized tax benefits (in thousands):

 

Balance at January 1, 2020

 

$

509

 

Additions for tax positions related to the prior year

 

 

 

Lapse of statute of limitations

 

 

 

Balance at January 1, 2021

 

 

509

 

Additions for tax positions related to the prior year

 

 

 

Lapse of statute of limitations

 

 

(159

)

Balance at January 1, 2022

 

 

350

 

Additions for tax positions related to the prior year

 

 

 

Lapse of statute of limitations

 

 

 

Reduction due to section 382 limitation

 

 

(131

)

Balance at December 31, 2022

 

$

219