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 Income Before Income Tax, Domestic and Foreign
The following table summarizes the Company’s income before income taxes (in thousands):
Years Ended December 31,
2022 2021 2020
U.S income $ 63  $ 1,033  $ 6,623 
Non-U.S. income 67  224  920 
Income before income taxes $ 130  $ 1,257  $ 7,543 
Schedule of Components of Income Tax Expense (Benefit)
The following table summarizes the Company’s components of the consolidated benefit from (provision for) income taxes (in thousands):
Years Ended December 31,
2022 2021 2020
U.S Federal income tax benefit (expense)
Current $ —  $ —  $ (11)
Deferred 44  150  8,346 
Total U.S. Federal income tax benefit 44  150  8,335 
State and local income tax (expense) benefit
Current (99) (167) (66)
Deferred (65) 3  1,725 
Total state and local income tax (expense) benefit (164) (164) 1,659 
Foreign income tax benefit (expense)
Current 8  177  (205)
Total income tax (expense) benefit $ (112) $ 163  $ 9,789 
Summary of Valuation Allowance
The following table summarizes activity related to the Company’s valuation allowance (in thousands):
Years Ended December 31,
2022 2021 2020
Valuation allowance at the Beginning of Period $ —  $ —  $ (11,250)
Income tax expense —  —  — 
Increase in valuation allowance —  —  — 
Release of valuation allowance —  —  11,250 
Valuation allowance at the End of Period $ —  $ —  $ — 
Schedule of Effective Income Tax Rate Reconciliation
The following table summarizes a reconciliation of the Company’s income tax (expense) benefit from the effective income tax rate to the U.S. federal statutory rate (in thousands):
Years Ended December 31,
2022 2021 2020
Income tax expense at the statutory rate $ (27) $ (264) $ (1,584)
State and local income tax expense (130) (130) (387)
Foreign income tax (4) (12) (12)
Share-Based compensation and other permanent differences (58) 462 633
Decrease in valuation allowance — — 11,250
Credits 79 34 —
Other adjustments 28 73 (111)
Income tax (expense) benefit at effective income tax rate $ (112) $ 163 $ 9,789
Effective income tax rate 86.0  % (12.9) % (129.8) %
Schedule of Deferred Tax Assets and Liabilities
The following table summarizes the temporary differences and carryforwards that give rise to deferred tax assets and liabilities (in thousands):
December 31, 2022 December 31, 2021
Deferred Federal tax assets –
Bad debt reserves $ 2,113  $ 1,576 
Stock-based compensation 1,428  1,350 
Net operating loss 7,507  8,022 
Operating lease liabilities 985  980 
Accrued compensation 449  253 
Inventories 518  246 
Goodwill and intangible assets —  21 
Research & development credits / Capitalized R&D 533  533 
Other credits 141  62 
Other 361  89 
Total deferred Federal tax assets 14,035  13,132 
Deferred Federal tax liabilities –
Depreciation and asset basis differences (3,661) (3,423)
Goodwill and intangible assets (650) — 
Right-of-use assets (875) (891)
Derivative financial instruments (475) (88)
Total deferred Federal tax liabilities (5,661) (4,402)
Net deferred Federal tax assets 8,374  8,730 
Total deferred state and local tax assets (a) 1,251  1,303 
Net deferred tax assets $ 9,625  $ 10,033 
(a) At December 31, 2022 and 2021, this includes state and local net operating losses of $1.2 million and $1.3 million, respectively.