Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.20.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
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, 2019 and 2018 (in thousands):
 
December 31,
 
2019
 
2018
Deferred tax assets:
 
 
 
Net operating loss carryforwards
$
2,627

 
$
1,608

Business credit carryforwards
620

 
100

Intangible assets
890

 
1,002

Stock-based compensation
6,740

 
4,535

Change to inventory
268

 
—

Operating lease liabilities
2,866

 
—

Deferred rent
—

 
372

Accruals and reserves
383

 
129

 
14,394

 
7,746

Deferred tax liabilities:
 
 
 
Operating lease assets
(2,437
)
 
—

Property and equipment
(390
)
 
(687
)
CanX intangible assets
(1,054
)
 
(1,064
)
Other
(172
)
 
—

 
(4,053
)
 
(1,751
)
Valuation allowance
(10,762
)
 
(7,060
)
Net deferred tax liabilities
$
(421
)
 
$
(1,065
)
Schedule of effective income tax rate reconciliation
A reconciliation of the expected income tax expense (benefit) at the federal statutory rate of 21% for the years ended December 31, 2019 and 2018, and the income tax expense (benefit) reported in the financial statements is as follows:
 
For the years ended December 31,
 
2019
 
2018
 
Amount
 
% of pretax income (loss)
 
Amount
 
% of pretax income (loss)
Income tax expense (benefit) at federal statutory rate
$
(3,624
)
 
21.0
 %
 
$
2,120

 
21.0
 %
State taxes, net of federal effect
(1,142
)
 
6.6

 
(61
)
 
(0.6
)
Other permanent differences
43

 
(0.2
)
 
117

 
1.2

Stock-based compensation
(274
)
 
1.6

 
(2,680
)
 
(26.6
)
Non-deductible officer compensation (IRC 162(m))
1,242

 
(7.2
)
 
—

 
—

Non-deductible interest on convertible notes
—

 
—

 
11

 
0.1

R&D tax credits
(320
)
 
1.9

 
—

 
—

Other
(241
)
 
1.4

 
—

 
—

Increase in valuation allowance
3,701

 
(21.5
)
 
586

 
5.8

Income tax expense (benefit)
$
(615
)
 
3.6
 %
 
$
93

 
0.9
 %
Reconciliation of income tax provision
The income tax expense (benefit) for the years ended December 31, 2019 and 2018 was comprised of the following (in thousands):
 
For the years ended December 31,
 
2019
 
2018
Current:
 
 
 
Federal
$
—

 
$
—

State
29

 
103

Total current tax expense
29

 
103

Deferred:
 
 
 
Federal
(640
)
 
(8
)
State
(4
)
 
(2
)
Total deferred tax (benefits)/expense
(644
)
 
(10
)
Provision for income taxes
$
(615
)
 
$
93