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 Tax Disclosure [Abstract]  
Schedule of effective income tax rate reconciliation
The following table is a reconciliation of the components that caused the Company's provision for income taxes to differ from amounts computed by applying the U.S. federal statutory rate of 21% (in thousands):
Years Ended December 31,
2021 2020
Statutory U.S. Federal income tax $ 719  21.0  % $ (12,482) 21.0  %
State income taxes, net (650) (19.0) % (1,720) 2.9  %
Change in valuation allowance 2,371  69.2  % 8,811  (14.8) %
Warrant valuation (4,927) (143.9) % 4,763  (8.0) %
Tax effect of non-deductible equity instruments 2,340  68.4  % 2,000  (3.4) %
Return to provision adjustment 20  0.6  % (1,571) 2.6  %
Other 164  4.8  % 199  (0.3) %
Total provision $ 37  1.1  % $ —  0.0  %
Schedule of deferred tax assets and liabilities
Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):
December 31,
2021 2020
Deferred income tax assets:
Net operating loss carryforwards $ 15,049  $ 11,185 
ROU assets 14  81 
Share-based compensation 4,668  5,728 
Inventory 106  212 
Other assets 2,021  2,595 
Gross deferred tax assets 21,858  19,801 
Valuation allowance (19,095) (16,724)
Net deferred tax assets $ 2,763  $ 3,077 
Deferred income tax liabilities:
Operating lease liabilities (13) (79)
Intangibles (2,774) (2,998)
Deferred tax liabilities, net of valuation allowance $ (24) $ — 
Summary of valuation allowance
Changes in valuation allowance are as follows (in thousands):
Years Ended December 31,
2021 2020
Valuation allowance, at beginning of year $ 16,724  $ 7,913 
Increase in valuation allowance 2,371  8,811 
Valuation allowance, at end of year $ 19,095  $ 16,724