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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES The significant components of our (provision for) benefit from income taxes attributable to current operations for the periods stated were as follows:
| For the Year Ended December 31,
(Dollars in thousands) | 2022 |  | 2021 |  | 2020
Income (loss) before income taxes | $ | 997 |  |  | $ | (27,332) |  |  | $ | (21,770) |
Current: |  |  |  |  |
Federal tax | $ | — |  |  | $ | — |  |  | $ | — |
State tax | 38 |  |  | 48 |  |  | 58 |
Foreign tax | 50 |  |  | 283 |  |  | (150) |
Total current | 88 |  |  | 331 |  |  | (92) |
Deferred: |  |  |  |  |
Federal tax | (20,642) |  |  | (4,178) |  |  | 20,594 |
State tax | 25 |  |  | (1,561) |  |  | 1,910 |
Foreign tax | (330) |  |  | 256 |  |  | 43 |
Total deferred | (20,947) |  |  | (5,483) |  |  | 22,547 |
Benefit from (provision for) income taxes | $ | (20,859) |  |  | $ | (5,152) |  |  | $ | 22,455 |
Foreign income before income tax (benefit) expense is immaterial to consolidated income before income tax (benefit) expense. The following table summarizes the principal elements of the difference between the United States federal statutory rate of 21% and our effective tax rate for the years ended December 31, 2022, 2021 and 2020:
(Dollars in thousands) | 2022 |  | 2021 |  | 2020
Income (loss) before income taxes | $ | 997 |  |  |  |  | $ | (27,332) |  |  |  |  | $ | (21,770) |  |  |
Income taxes computed at the federal statutory rate | $ | 209 |  |  | 21.0 | % |  | $ | (5,740) |  |  | 21.0 | % |  | $ | (4,572) |  |  | 21.0 | %
State income taxes, net of federal benefit | 121 |  |  | 12.1 | % |  | (1,513) |  |  | 5.5 | % |  | (703) |  |  | 3.2 | %
Goodwill impairment | — |  |  | — | % |  | — |  |  | — | % |  | 6,341 |  |  | (29.1) | %
Change in valuation allowance | (21,850) |  |  | (2,191.6) | % |  | 2,070 |  |  | (7.6) | % |  | 22,108 |  |  | (101.6) | %
Research and development and other tax credits | (88) |  |  | (8.8) | % |  | (808) |  |  | 3.0 | % |  | (1,316) |  |  | 6.0 | %
Excess executive compensation | 231 |  |  | 23.1 | % |  | 272 |  |  | (1.0) | % |  | 266 |  |  | (1.2) | %
Other | 518 |  |  | 52.0 | % |  | 567 |  |  | (2.1) | % |  | 331 |  |  | (1.5) | %
(Benefit from) provision for income taxes | $ | (20,859) |  |  | (2,092.2) | % |  | $ | (5,152) |  |  | 18.8 | % |  | $ | 22,455 |  |  | (103.1) | %
The anticipated effective income tax rate is expected to continue to differ from the federal statutory rate primarily due to the effect of state incom e taxes and permanent differences between book and taxable income. The earnings of non-U.S. subsidiaries are deemed to be indefinitely reinvested in non-U.S. operations. The components of deferred income tax assets at December 31, 2022 and 2021 were as follows:
| December 31,
(Dollars in thousands) | 2022 |  | 2021
Capitalized research and development costs | $ | 13,862 |  |  | $ | 13,436 |
Net operating loss carryforward | 25,710 |  |  | 25,284 |
Property and equipment | 4,142 |  |  | 5,139 |
Accrued liabilities, reserves and other expenses | 3,877 |  |  | 4,350 |
Research and development credits | 6,430 |  |  | 6,342 |
Tax credits | 717 |  |  | 495 |
Stock based compensation | 1,834 |  |  | 2,283 |
Operating lease liabilities | 3,999 |  |  | 4,427 |
Other | 120 |  |  | 289 |
Gross deferred income tax assets | 60,691 |  |  | 62,045 |
Deferred income tax liabilities: |  |  |
Intangible assets | (2,269) |  |  | (2,128) |
Right-of-use assets | (3,534) |  |  | (4,051) |
Prepaid and other expenses | (162) |  |  | (35) |
Gross deferred income tax liabilities | (5,965) |  |  | (6,214) |
Net deferred income tax assets | 54,726 |  |  | 55,831 |
Valuation allowance | (2,328) |  |  | (24,178) |
Total deferred income tax assets | $ | 52,398 |  |  | $ | 31,653 |
Net Operating Losses As of December 31, 2022, we had approximately $110.2 million of net operating losses available to offset future taxable income, of which approximately $70.6 million were federal net operating losses with expiration dates that begin expiring in 2026 and will fully expire in 2030 and $39.6 million that were indefinite lived. Valuation Allowance We assess the recoverability of our deferred income tax assets, which represent the tax benefits of future tax deductions, based on available positive and negative evidence and by considering the adequacy of future taxable income from all sources, including prudent and feasible tax planning strategies. This assessment is required to determine whether, based on all available evidence, it is "more likely than not" (meaning a probability of greater than 50%) that all or some portion of the deferred income tax assets will be realized in future periods. Historically, the cumulative loss incurred by the Company over the prior three-year period constituted a piece of objective negative evidence which limited our ability to consider other subjective evidence. Given the completion of our recent restructuring efforts and our expected return to profitability (as indicated by income generated before income taxes in 2022), we have eliminated costs that had resulted in our cumulative loss over the prior three-year period, that are not present in our current operating posture or future forecasts. As a result, we determined the negative evidence presented by a cumulative loss position to be weighted less in our assessment compared to positive evidence from our historical core operating results and future projections. Additionally, we considered there to be lower forecast uncertainty as a result of our new strategy and lessening impacts of COVID-19, such that we believe that positive evidence from our projections of future profitability to be weighted more heavily in our assessment of the recoverability of our deferred income tax assets. Based on the assessment completed, utilizing our annual long-range planning and forecasting updates that are traditionally completed in the fourth quarter of each year, we reduced the valuation allowance by $21.9 million as of December 31, 2022, to increase net deferred income tax assets, as their realization met the more-likely-than-not criterion. The Company maintained a valuation allowance of $2.3 million related to Federal Foreign Tax Credits and certain state net operating losses and state tax credits, as we do not believe current projections of future taxable income will be sufficient to utilize those tax assets prior to expiration. Income Tax Audits The 2020, 2021 and 2022 federal and state income tax returns are within the statute of limitations (“SOL”) and are currently not under examination by any Federal or state tax authority. We operate in all states and the District of Columbia and are subject to various state income and franchise tax audits. The states’ SOL varies from three to four years from the later of the due date of the return or the date filed. We usually file our federal and all state and local income tax returns on or before September 15 of the following year; therefore, the SOL for those states with a three-year SOL is open for calendar years ending 2019 through 2022, and for the four-year SOL states, the SOL is open for years ending from 2018 through 2022.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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