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

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

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)

%