Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.22.1
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Reconciliation of Income Tax Provision The income tax benefit for the years ended December 31, 2021 and 2020 was comprised of the following (in thousands):
For the years ended December 31,
2021 2020
Current:
Federal $ —  $ — 
State (52)
Total current tax expense (benefit) (52)
Deferred:
Federal (94) (1)
State —  (264)
Total deferred tax benefit (94) (265)
Income tax benefit $ (87) $ (317)
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of the expected income tax benefit at the federal statutory rate of 21% for the years ended December 31, 2021 and 2020, and the income tax benefit reported in the financial statements is as follows:
For the years ended December 31,
2021 2020
Amount % of pretax income (loss) Amount % of pretax income (loss)
Income tax benefit at federal statutory rate $ (3,285) 21.0  % $ (4,746) 21.0  %
State taxes, net of federal effect (761) 4.9  (1,391) 6.2 
Other permanent differences (41) —  115  (0.5)
Stock-based compensation 236  (1.5) 569  (2.5)
R&D tax credits (30) 0.2  (242) 1.1 
Other 1,075  (6.9) 769  (3.6)
Increase in valuation allowance 2,719  (17.4) 4,609  (20.4)
Income tax expense (benefit) $ (87) 0.3  % $ (317) 1.3  %
Schedule of Deferred Tax Assets
The following table summarizes the significant components of the Company's deferred tax assets and liabilities as of December 31, 2021 and 2020 (in thousands):
December 31,
2021 2020
Deferred tax assets:
Net operating loss carryforwards $ 8,109  $ 5,876 
Business credit carryforwards 948  918 
Intangible assets 617  756 
Stock-based compensation 6,364  6,470 
Change to inventory 112  61 
Operating lease liabilities —  1,126 
Accruals and reserves 2,470  2,275 
18,620  17,482 
Deferred tax liabilities:
Operating lease assets —  (830)
Property and equipment (211) (396)
CanX intangible assets (384) (1,013)
Other (29)
(592) (2,268)
Valuation allowance (18,090) (15,371)
Net deferred tax liabilities $ (62) $ (157)
Schedule of Unrecognized Tax Benefits
A reconciliation of the Company's unrecognized tax benefits for the years ended December 31, 2021 and 2020 is provided in the following table (in thousands):
2021 2020
Balance as of January 1: $ 166  $ — 
Increase in current year positions 47 
Increase in prior year positions —  119 
Decrease in prior year positions —  — 
Balance as of December 31: $ 172  $ 166