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]  
Reconciliation of Income Tax Provision The income tax benefit for the years ended December 31, 2022 and 2021 was comprised of the following (in thousands):
For the years ended December 31,
2022 2021
Current:
Federal $ —  $ — 
State
Total current tax expense
Deferred:
Federal (51) (94)
State —  — 
Total deferred tax benefit (51) (94)
Income tax benefit $ (47) $ (87)
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, 2022 and 2021, and the income tax benefit reported in the financial statements is as follows:
For the years ended December 31,
2022 2021
Amount % of pretax income (loss) Amount % of pretax income (loss)
Income tax benefit at federal statutory rate $ (1,735) 21.0  % $ (3,285) 21.0  %
State taxes, net of federal effect (456) 5.5  (761) 4.9 
Other permanent differences 21  (0.3) (41) — 
Stock-based compensation 1,795  (21.7) 236  (1.5)
NOL adjustments and other true-ups 722  (8.7) —  — 
R&D tax credits (1) —  (30) 0.2 
Other 14  (0.2) 1,075  (6.9)
Increase (decrease) in valuation allowance (407) 4.9  2,719  (17.4)
Income tax benefit $ (47) 0.5  % $ (87) 0.3  %
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, 2022 and 2021 (in thousands):
December 31,
2022 2021
Deferred tax assets:
Net operating loss carryforwards $ 9,280  $ 8,109 
Business credit carryforwards 948  948 
Intangible assets 527  617 
Stock-based compensation 4,416  6,364 
Change to inventory 87  112 
Operating lease liabilities 81  — 
Accruals and reserves 2,351  2,470 
Other 222  — 
17,912  18,620 
Deferred tax liabilities:
Operating lease assets (73) — 
Property and equipment (100) (211)
CanX intangible assets (67) (384)
Other — 
(240) (592)
Valuation allowance (17,683) (18,090)
Net deferred tax liabilities $ (11) $ (62)
Schedule of Unrecognized Tax Benefits
A reconciliation of the Company's unrecognized tax benefits for the years ended December 31, 2022 and 2021 is provided in the following table (in thousands):
2022 2021
Balance as of January 1: $ 172  $ 166 
Increase in current year positions — 
Increase in prior year positions —  — 
Decrease in prior year positions —  — 
Balance as of December 31: $ 172  $ 172