Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.22.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2021
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,
2021 2020 2019
U.S income $ 1,033  $ 6,623  $ 1,413 
Non-U.S. income 224  920  111 
Income before income taxes $ 1,257  $ 7,543  $ 1,524 
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,
2021 2020 2019
U.S Federal income tax benefit (expense)
Current $ —  $ (11) $ — 
Deferred 150  8,346  (104)
Total U.S. Federal income tax benefit (expense) 150  8,335  (104)
State and local income tax (expense) benefit
Current (167) (66) (29)
Deferred 3  1,725  — 
Total state and local income tax (expense) benefit (164) 1,659  (29)
Foreign income tax expense
Current 177  (205) (30)
Total income tax benefit (expense) $ 163  $ 9,789  $ (163)
Summary of Valuation Allowance
The following table summarizes activity related to the Company’s valuation allowance (in thousands):
Years Ended December 31,
2021 2020 2019
Valuation allowance at the Beginning of Period $ —  $ (11,250) $ (11,370)
Income tax expense —  —  — 
Increase in valuation allowance —  —  — 
Release of valuation allowance —  11,250  120 
Valuation allowance at the End of Period $ —  $ —  $ (11,250)
Schedule of Effective Income Tax Rate Reconciliation
The following table summarizes a reconciliation of the Company’s effective income tax rate to the U.S. federal statutory rate:
Years Ended December 31,
2021 2020 2019
Income tax expense at the statutory rate 21.0  % 21.0  % 21.0  %
State and local income tax expense 10.3  % 5.1  % 2.0  %
Foreign income tax 1.0  % 0.2  % 2.0  %
Permanent differences (36.7  %) (8.4  %) (5.8  %)
Decrease in valuation allowance —  % (149.2  %) (7.9  %)
Other adjustments (8.5  %) 1.5  % (0.6  %)
Effective income tax rate (12.9  %) (129.8  %) 10.7  %
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, 2021 December 31, 2020
Deferred Federal tax assets –
Bad debt reserves $ 1,576  $ 1,570 
Stock-based compensation 1,350  656 
Net operating loss 8,022  7,337 
Operating lease liabilities 980  1,014 
Accrued compensation 253  757 
Inventories 246  214 
Goodwill and intangible assets 21  832 
Research & development credits 533  533 
Other credits 62  30 
Other 89  54 
Total deferred Federal tax assets 13,132  12,997 
Deferred Federal tax liabilities –
Depreciation and asset basis differences (3,423) (3,393)
Right-of-use assets (891) (937)
Other (88) — 
Total deferred Federal tax liabilities (4,402) (4,330)
Net deferred Federal tax assets 8,730  8,667 
Total deferred state and local tax assets (a) 1,303  1,300 
Net deferred tax assets $ 10,033  $ 9,967 
(a) At December 31, 2021 and 2020, this includes state and local net operating losses of $1.3 million and $1.2 million, respectively.