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Note 13 - Income Taxes | 12 Months Ended
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Dec. 31, 2024
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | Note 13 – Income Taxes The provision for income taxes for the Company consists of the following for the years ended December 31, 2024, 2023 and 2022:
|  | Year ended |  |  |  |  |  |  |
|  | December 31, |  |  | December 31, |  |  | December 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 24 |  |  | $ | 61 |  |  | $ | — |
State |  |  | (9 | ) |  |  | 186 |  |  |  | — |
Total current expense |  |  | 15 |  |  |  | 247 |  |  |  | — |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (223 | ) |  |  | (85 | ) |  |  | 2,272 |
State |  |  | 1,150 |  |  |  | (31 | ) |  |  | 812 |
Change in valuation allowance |  |  | (927 | ) |  |  | 116 |  |  |  | (3,084 | )
Total deferred expense |  |  | — |  |  |  | — |  |  |  | — |
Total provision |  | $ | 15 |  |  | $ | 247 |  |  | $ | — |
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income taxes. The significant components of the Company’s deferred tax assets as of December 31, 2024 and 2023 are as follows:
|  | December 31, |  |  | December 31, |
|  | 2024 |  |  | 2023 |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 14,145 |  |  | $ | 15,447 |
Stock-based compensation |  |  | 2,021 |  |  |  | 3,372 |
Accruals and other |  |  | 4,827 |  |  |  | 2,866 |
Total deferred tax assets |  |  | 20,993 |  |  |  | 21,685 |
Valuation allowance |  |  | (20,589 | ) |  |  | (21,516 | )
Deferred tax assets |  | $ | 404 |  |  | $ | 169 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Deferred consideration discount |  | $ | (182 | ) |  | $ | — |
Right-of-use assets |  |  | (45 | ) |  |  | (27 | )
Other deferred tax liabilities |  |  | (177 | ) |  |  | (142 | )
Deferred tax liabilities |  | $ | (404 | ) |  | $ | (169 | )
Net deferred tax assets (liabilities) |  | $ | — |  |  | $ | — |
In assessing the realizability of deferred tax assets, the Company considers all available positive and negative evidence to evaluate whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of December 31, 2024, the Company believes it is more likely than not that the Company's net deferred tax assets would not be realized and continues to record a full valuation allowance on its net deferred tax assets. The Company's valuation allowance represents the amount of tax benefits that are likely to not be realized. Based on the uncertainty of future taxable income at this time, Management believes a 100% valuation reserve for the $20,589 and $21,516 net deferred tax assets at December 31, 2024 and 2023, respectively, is appropriate. A reconciliation of the income tax adjustments used to derive income tax expense is shown below for the years ended December 31, 2024, 2023 and 2022 as follows:
|  | Year ended |
|  | December 31, |  |  | December 31, |  |  | December 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Benefit based on federal statutory rate |  | $ | (800 | ) |  | $ | (145 | ) |  | $ | (1,894 | )
Stock-based compensation |  |  | 880 |  |  |  | 254 |  |  |  | 24 |
Change in state tax rate |  |  | 814 |  |  |  | - |  |  |  | - |
Warrants |  |  | - |  |  |  | - |  |  |  | (476 | )
State income tax, net of federal tax benefit |  |  | (31 | ) |  |  | (45 | ) |  |  | (785 | )
Section 162(m) limitation |  |  | 169 |  |  |  | - |  |  |  | - |
Other permanent differences |  |  | 18 |  |  |  | 299 |  |  |  | 47 |
Research and development credits |  |  | (277 | ) |  |  | - |  |  |  | - |
Change in uncertain tax position reserve |  |  | 382 |  |  |  | - |  |  |  | - |
Return to provision |  |  | (213 | ) |  |  | - |  |  |  | - |
Change in valuation allowance |  |  | (927 | ) |  |  | (116 | ) |  |  | 3,084 |
Income tax expense |  | $ | 15 |  |  | $ | 247 |  |  | $ | — |
For the years ended December 31, 2024, 2023 and 2022, the Company's effective income tax rate was (0.4%), (35.9%) and 0.0%, respectively. As of December 31, 2024, The Company has gross federal net operating loss of $49,815, which can be carried forward indefinitely, and gross state operating loss of $52,911, which begin to expire in 2034. The Company's federal net operating losses, and certain state net operating losses, are subject to an 80% annual utilization limitation. In addition, under Sections 382 and 383 of the Internal Revenue Code of 1986, as amended, and corresponding provisions of state law, if a corporation undergoes an “ownership change,” which is generally defined as a greater than 50% change (by value) in its equity ownership over a three-year period, the corporation’s ability to use its pre-change NOL carryforwards and other pre-change tax attributes (such as research tax credits) to offset its post-change income may be limited. The Company recognizes tax benefits from uncertain positions if it is more likely than not that the tax position will be sustained by the tax authority upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits of the position. If a tax position meets the more likely than not threshold, the Company measures the tax position as the largest amount of benefit that is greater than 50% likely to be realized upon ultimate settlement. A reconciliation of uncertain tax positions at the beginning and end of the years below is as follows:
|  | Year ended |
|  | December 31, |  |  | December 31, |  |  | December 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Beginning balance |  | $ | — |  |  | $ | — |  |  | $ | — |
Gross increases (decreases) related to prior year positions |  |  | 243 |  |  |  | - |  |  |  | - |
Gross increases (decreases) related to current year positions |  |  | 139 |  |  |  | - |  |  |  | - |
Decreases related to settlements with taxing authorities |  |  | - |  |  |  | - |  |  |  | - |
Reductions related to statute of limitation expirations |  |  | - |  |  |  | - |  |  |  | - |
Ending balance |  | $ | 382 |  |  | $ | — |  |  | $ | — |

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