Annual report [Section 13 and 15(d), not S-K Item 405]

INCOME TAXES (Tables)

v3.25.1
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2024
INCOME TAXES  
Schedule of components of the income tax provision

​

​

​

​

​

​

​

​

​

​

Years Ended December 31, 

($’s in thousands)

    

2024

    

2023

Current:

​

​

  

​

​

  

Federal

​

$

2

​

$

34

State

​

 

58

​

 

187

Total current

​

 

60

​

 

221

​

​

​

​

​

​

​

Deferred:

​

 

​

​

 

  

Federal

​

 

(2,704)

​

 

(753)

State

​

 

(1,184)

​

 

(94)

Total deferred

​

 

(3,888)

​

 

(847)

Valuation allowance

​

​

3,889

​

​

847

Total income tax expense

​

$

61

​

$

221

Schedule of company's deferred tax assets

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​

​

​

​

​

​

​

​

​

December 31, 

($’s in thousands)

    

2024

    

2023

Deferred tax assets:

​

​

  

​

​

  

Net operating loss carryforwards

​

$

6,814

​

$

4,376

Amortization of license fees

​

 

5,670

​

 

5,603

R&D capitalization

​

 

4,714

​

 

3,312

Stock compensation

​

 

1,647

​

 

1,081

Lease liability

​

​

51

​

​

27

Reserve on sales return, discount and bad debt

​

 

2,471

​

 

3,566

Accruals and reserves

​

 

850

​

 

723

Tax credits

​

 

1,493

​

 

1,491

Business interest expense deduction limit

​

 

373

​

 

—

State taxes

​

 

10

​

 

—

Total deferred tax assets

​

 

24,093

​

 

20,179

Less: valuation allowance

​

​

(24,043)

​

​

(20,154)

Deferred tax assets, net

​

$

50

​

$

25

​

​

​

​

​

​

​

Deferred tax liability:

​

​

​

​

​

​

Right-of-use asset

​

​

(50)

​

​

(25)

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, 

 

​

    

2024

    

2023

 

Percentage of pre-tax income:

​

  

​

  

​

U.S. federal statutory income tax rate

 

21

%

21

%

State taxes, net of federal benefit

 

3

%

(1)

%

Non-deductible items

 

(2)

%

(4)

%

Provision to return

 

—

%

(1)

%

State tax adjustments

 

3

%

(1)

%

Change in valuation allowance

​

(28)

%

(23)

%

Share-based compensation

​

2

%  

(10)

%  

Tax credits

 

—

%

13

%

Effective income tax rate

 

(1)

%

(6)

%