Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.22.1
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2021
INCOME TAXES  
Schedule of components of the income tax provision

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​

Years Ended December 31, 

($’s in thousands)

    

2021

    

2020

Current:

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​

  

​

​

  

Federal

​

$

—

​

$

1,669

State

​

 

67

​

 

536

Total current

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67

​

 

2,205

​

​

​

​

​

​

​

Deferred:

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​

 

  

Federal

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(7,829)

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(234)

State

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(1,474)

​

 

(101)

Total deferred

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(9,303)

​

 

(335)

Valuation allowance

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​

10,870

​

​

—

Total income tax expense

​

$

1,634

​

$

1,870

Schedule of components of the Company's deferred tax assets

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December 31, 

($’s in thousands)

    

2021

    

2020

Deferred tax assets:

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​

  

Net operating loss carryforwards

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$

3,113

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$

5

Amortization of license fees

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4,760

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1,086

Stock compensation

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667

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113

Lease liability

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25

​

 

48

Reserve on sales return, discount and bad debt

​

 

3,573

​

 

765

Accruals and reserves

​

 

505

​

 

248

Tax credits

​

 

193

​

 

—

Business interest expense deduction limit

​

 

41

​

 

—

State taxes

​

 

12

​

 

—

Total deferred tax assets

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12,889

​

 

2,265

Less: valuation allowance

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(10,870)

​

​

—

Deferred tax assets, net

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$

2,019

​

$

2,265

​

​

​

​

​

​

​

Deferred tax liability:

​

​

​

​

​

​

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

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​

(1,996)

​

​

(765)

Right-of-use asset

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(23)

​

​

(46)

Deferred tax assets, net

​

$

—

​

$

1,454

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

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Years Ended December 31, 

 

​

    

2021

    

2020

 

Percentage of pre-tax income:

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​

U.S. federal statutory income tax rate

 

21

%  

21

%

State taxes, net of federal benefit

 

4

%  

6

%

Non-deductible items

 

(5)

%  

0

%

Provision to return

 

0

%  

0

%

Change in state rate

 

0

%  

(1)

%

Change in valuation allowance

​

(26)

%  

0

%

Other

 

2

%  

0

%

Effective income tax rate

 

(4)

%  

26

%