BIOLASE, 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

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):


	2023		2022			2021
Current:
Federal	$	—	$	—		$	—
State		15		40			17
Foreign		15		70			47
		30		110			64
Deferred:
Federal		—		—			—
State		—		—			—
Foreign		1		(1	)		1
		1		(1	)		1
	$	31	$	109		$	65

Summary of 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:


	2023				2022				2021
Statutory regular federal income tax rate		(21.0	)	%		(21.0	)	%		(21.0	)	%
Change in valuation allowance		21.9		%		(92.8	)	%		34.2		%
State tax benefit (net of federal benefit)		(4.0	)	%		(3.9	)	%		(4.8	)	%
Research credits		—		%		—		%		(0.6	)	%
Foreign amounts with no tax benefit		0.1		%		0.1		%		—		%
Non-deductible expenses		2.4		%		0.6		%		(4.2	)	%
Effect of change in rate		(0.4	)	%		4.5		%		—		%
Expired net operating loss carryforwards		—		%		—		%		—		%
Net operating loss 382 write-offs		—		%		113.4		%		—		%
Effect of prior year true-ups		0.1		%		(1.2	)	%		(4.3	)	%
Other		1.0		%		0.6		%		1.1		%
Total		0.1		%		0.3		%		0.4		%

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):


	2023			2022
Capitalized intangible assets for tax purposes	$	(38	)	$	(38	)
Reserves not currently deductible		1,353			2,409
Deferred revenue		65			106
Stock options		1,382			1,500
State taxes		5			6
Income tax credits		1,498			1,496
Inventory		1,179			1,024
Property and equipment		(591	)		186
Unrealized gain on foreign currency		(10	)		113
Disallowed interest		2,726			2,167
Lease liability		416			475
Capitalized research or experimental expenses		1,601			1,456
Net operating losses		27,476			21,665
Total deferred tax assets		37,062			32,565
Valuation allowance		(35,806	)		(31,235	)
Net deferred tax assets		1,256			1,330
Capitalized intangible assets		(668	)		(664	)
Right of use asset		(380	)		(442	)
Other		(167	)		(190	)
Total deferred tax liabilities		(1,215	)		(1,296	)
Net deferred tax assets	$	41		$	34

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, 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 January 1, 2023		219
Additions for tax positions related to the prior year		—
Lapse of statute of limitations		—
Balance at December 31, 2023	$	219