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

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

December 31, 

($’s in thousands)

    

2023

    

2022

Deferred tax assets:

  

  

Net operating loss carryforwards

$

4,376

$

6,553

Amortization of license fees

 

5,603

 

4,951

R&D capitalization

 

3,312

 

2,462

Stock compensation

 

1,081

 

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

(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

Years Ended December 31, 

 

    

2023

    

2022

 

Percentage of pre-tax income:

  

  

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)

%