Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.23.1
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2022
INCOME TAXES  
Summary of provision benefit of income tax and effective tax rate

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​

Years Ended December 31, 

($’s in thousands)

    

2022

    

2021

Current:

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​

  

​

​

  

Federal

​

$

—

​

$

—

State

​

 

63

​

 

67

Total current

​

 

63

​

 

67

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​

​

​

​

​

​

Deferred:

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​

 

  

Federal

​

 

(6,701)

​

 

(7,829)

State

​

 

(1,737)

​

 

(1,474)

Total deferred

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(8,438)

​

 

(9,303)

Valuation allowance

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​

8,438

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​

10,870

Total income tax expense

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$

63

​

$

1,634

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Schedule of components of the Company's deferred tax assets

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December 31, 

($’s in thousands)

    

2022

    

2021

Deferred tax assets:

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Net operating loss carryforwards

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$

6,553

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$

3,113

Amortization of license fees

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4,951

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4,760

R&D capitalization

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2,462

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—

Stock compensation

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1,293

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667

Lease liability

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​

48

​

​

25

Reserve on sales return, discount and bad debt

​

 

2,988

​

 

3,573

Accruals and reserves

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574

​

 

505

Tax credits

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1,152

​

 

193

Business interest expense deduction limit

​

 

322

​

 

41

State taxes

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13

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12

Total deferred tax assets

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20,356

​

 

12,889

Less: valuation allowance

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(19,307)

​

​

(10,870)

Deferred tax assets, net

​

$

1,049

​

$

2,019

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​

​

​

​

​

​

Deferred tax liability:

​

​

​

​

​

​

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

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​

(1,001)

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​

(1,996)

Right-of-use asset

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​

(48)

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​

(23)

Deferred tax assets, net

​

$

—

​

$

—

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

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Years Ended December 31, 

 

​

    

2022

    

2021

 

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

%  

4

%

Non-deductible items

 

(0)

%  

(5)

%

Provision to return

 

0

%  

0

%

Change in state rate

 

0

%  

0

%

Change in valuation allowance

​

(28)

%  

(26)

%

Other

 

3

%  

2

%

Effective income tax rate

 

(0)

%  

(4)

%

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