Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.24.1
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2023
INCOME TAXES  
Schedule of components of the income tax provision

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​

​

Years Ended December 31, 

($’s in thousands)

    

2023

    

2022

Current:

​

​

  

​

​

  

Federal

​

$

34

​

$

—

State

​

 

187

​

 

63

Total current

​

 

221

​

 

63

​

​

​

​

​

​

​

Deferred:

​

 

  

​

 

  

Federal

​

 

(753)

​

 

(6,701)

State

​

 

(94)

​

 

(1,737)

Total deferred

​

 

(847)

​

 

(8,438)

Valuation allowance

​

​

847

​

​

8,438

Total income tax expense

​

$

221

​

$

63

Schedule of company's deferred tax assets

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December 31, 

($’s in thousands)

    

2023

    

2022

Deferred tax assets:

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​

  

​

​

  

Net operating loss carryforwards

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$

4,376

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$

6,553

Amortization of license fees

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5,603

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4,951

R&D capitalization

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3,312

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2,462

Stock compensation

​

 

1,081

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1,293

Lease liability

​

​

27

​

​

48

Reserve on sales return, discount and bad debt

​

 

3,566

​

 

2,988

Accruals and reserves

​

 

723

​

 

574

Tax credits

​

 

1,491

​

 

1,152

Business interest expense deduction limit

​

 

—

​

 

322

State taxes

​

 

—

​

 

13

Total deferred tax assets

​

 

20,179

​

 

20,356

Less: valuation allowance

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​

(20,154)

​

​

(19,307)

Deferred tax assets, net

​

$

25

​

$

1,049

​

​

​

​

​

​

​

Deferred tax liability:

​

​

​

​

​

​

Section 481(a) adjustment on reserve on sales return, discount and bad debt

​

​

—

​

​

(1,001)

Right-of-use asset

​

​

(25)

​

​

(48)

Deferred tax assets, net

​

$

—

​

$

—

Schedule of reconciliation of the statutory tax rates and the effective tax rates

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Years Ended December 31, 

 

​

    

2023

    

2022

 

Percentage of pre-tax income:

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​

  

​

U.S. federal statutory income tax rate

 

21

%  

21

%

State taxes, net of federal benefit

 

(1)

%  

4

%

Non-deductible items

 

(4)

%  

(0)

%

Provision to return

 

(1)

%  

0

%

State tax adjustments

 

(1)

%  

0

%

Change in valuation allowance

​

(23)

%  

(28)

%

Share-based compensation

​

(10)

%  

0

%  

Tax credits

 

13

%  

3

%

Effective income tax rate

 

(6)

%  

(0)

%