Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.22.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of differences between the carrying amount of assets and liabilities for financial reporting purposes and their respective income tax basis
Deferred income taxes are accounted for using the balance sheet approach, which requires recognition of deferred tax assets and liabilities for the expected future consequences of temporary differences between the financial reporting basis and the tax basis of assets and liabilities, as measured by enacted state and federal tax rates. Deferred tax assets and deferred tax liabilities are as follows:
(in thousands) December 31,
2022		 December 31,
2021
Deferred tax assets:
Net operating loss carryforwards $ 42,716  $ 47,049 
Inventory write-down 503  653 
Interest limitation —  453 
Allowance for doubtful accounts 169  70 
Lease obligations 5,643  5,736 
Stock-based compensation 5,274  3,985 
Capitalized research and development costs 6,357  6 
Debt derivative liability 1,174  (28)
Charitable contributions 203  — 
Accrued bonus 1,010  — 
Total deferred tax assets 63,049  58,934 
Deferred tax liabilities:
Depreciation (983) (692)
Amortization (17) (116)
Right-of-use assets (3,744) (3,861)
Contract liabilities 4  (4)
Total deferred tax liabilities (4,740) (4,673)
Net deferred tax assets 58,309  54,261 
Valuation allowance $ (58,309) $ (53,251)
Schedule of effective income tax rate reconciliation The Company’s effective income tax rate differs from the statutory federal income tax rate for the years ended December 31, 2022, 2021, and 2020 as follows:
Year Ended December 31,
2022 2021 2020
Federal tax rate 21.0  % 21.0  % 21.0  %
State taxes - net of Federal benefit 4.1  5.1  7.3 
Permanent items and other deductions (7.1) (1.6) (0.6)
Other (0.5) 0.2  — 
Valuation allowance (17.5) (24.7) (27.7)
Effective income tax rate —  % —  % —  %