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 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,
2022 2021
Statutory U.S. Federal income tax $ (8,260) 21.0  % $ 719  21.0  %
State income taxes, net (167) 0.4  % (650) (19.0) %
Change in valuation allowance 5,384  (13.7) % 2,371  69.2  %
Goodwill impairment 3,802  (9.7) % —  —  %
Warrant valuation —  —  % (4,927) (143.9) %
Tax effect of non-deductible equity instruments —  0.1  % 2,340  68.4  %
Return to provision adjustment (5) —  % 20  0.6  %
Other (772) 2.0  % 164  4.8  %
Total provision $ (18) 0.1  % $ 37  1.1  %
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,
2022 2021
Deferred income tax assets:
Net operating loss carryforwards $ 19,182  $ 15,049 
ROU assets 42  14 
Share-based compensation 5,251  4,668 
Inventory 157  106 
Other assets 2,306  2,021 
Gross deferred tax assets 26,938  21,858 
Valuation allowance (24,479) (19,095)
Net deferred tax assets $ 2,459  $ 2,763 
Deferred income tax liabilities:
Fixed assets (86) — 
Operating lease liabilities (41) (13)
Intangibles (2,332) (2,774)
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,
2022 2021
Valuation allowance, at beginning of year $ 19,095  $ 16,724 
Increase in valuation allowance 5,384  2,371 
Valuation allowance, at end of year $ 24,479  $ 19,095