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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Taxes  
Income Taxes

17.   Income Taxes

The components of the provision for income taxes are as follows:

​

​

​

​

​

​

​

​

​

    

2024

    

2023

Current tax provision:

    

​

  

    

​

  

Federal

​

$

948

  

$

3,576

State

​

 

310

  

 

605

Total current tax provision

​

​

1,258

​

​

4,181

Deferred tax provision:

​

 

​

  

 

​

Federal

​

 

5,015

  

 

(680)

State

​

 

712

  

 

16

Total deferred tax provision

​

​

5,727

​

​

(664)

Total income tax provision

​

$

6,985

  

$

3,517

​

A summary of the differences between the Company’s effective income tax rate and the federal statutory income tax rate for the years ended December 31, 2024 and 2023 are as follows:

​

​

​

​

​

​

​

​

    

2024

    

2023

​

Federal statutory rate

 

21.00

%  

21.00

%

State income tax rate, net of federal benefit

 

1.96

%  

2.04

%

Stock-based compensation

​

(8.32)

%  

(7.98)

%

Permanent items

 

(0.03)

%  

(0.71)

%

Other

 

(0.07)

%  

0.24

%

Effective income tax rate

 

14.54

%  

14.59

%

​

Deferred tax (liabilities) assets are comprised of the following at December 31:

​

​

​

​

​

​

​

​

​

    

2024

    

2023

Net operating loss carryforwards

 

$

185

  

$

188

Deferred revenue

 

​

185

  

​

268

Stock based compensation

 

​

208

  

​

385

Accrual and reserves

 

​

180

  

​

251

Research and development credits

 

​

251

  

​

262

Other

​

​

179

​

​

156

Depreciation and amortization

​

​

2,004

​

​

1,450

Lease liability

​

​

17

​

​

38

Total gross deferred tax assets

 

​

3,209

  

​

2,998

Less valuation allowance

 

​

—

  

​

—

Net deferred tax assets

​

​

3,209

​

​

2,998

Deferred tax liabilities:

​

​

​

​

​

​

Right of use assets

​

​

(16)

​

​

(36)

Change in fair value of digital assets

​

​

(5,958)

​

​

—

Total deferred tax liabilities

​

​

(5,974)

​

​

(36)

Net deferred tax (liabilities) assets

​

$

(2,765)

  

$

2,962

​

Federal and California tax laws imposes significant restrictions on the utilization of net operating loss (“NOL”) carryforwards in the event of a change in ownership of the Company, as defined by Section 382 of the Code (“Section 382”). The Company completed a formal 382 study for the period from January 1, 2012 through June 30, 2019 and concluded that a change in ownership has likely occurred. The Company has no NOL carryforwards for Federal income

tax purposes and approximately $2,580 for California income tax purposes as of December 31, 2024. The state NOL carryforwards, if not utilized, will expire beginning in 2035 and extended to 2038.

As of December 31, 2024 and 2023, the Company had $487 and $470, respectively, of unrecognized tax benefits (excluding interest and penalties) that, if recognized, would affect the effective tax rate. The following table summarizes the activity related to the Company’s gross unrecognized tax benefits:

​

​

​

​

​

​

​

​

​

    

​

Gross Unrecognized Tax Benefits 2024

    

​

Gross Unrecognized Tax Benefits 2023

Unrecognized tax benefits – January 1

​

$

470

 

$

401

Gross increases related to prior tax positions

​

 

—

 

 

4

Gross decreases related to prior tax positions

​

​

(3)

​

​

—

Gross increases related to current tax positions

​

 

20

 

 

65

Unrecognized tax benefits – December 31

​

$

487

 

$

470

​

The Company’s policy is to recognize interest and penalty expenses related to uncertain tax positions in income tax expense, which was $155 and $87 for the years ended December 31, 2024 and 2023, respectively. The Company files income tax returns in the U.S. federal and various state tax jurisdictions.

The Company’s tax years beginning in 2020 remain open for examination by the state tax authorities for four years. The Company’s tax years beginning in 2021 remain open for examination by the federal tax authorities for three years. Tax years beginning in 2018 will remain open for examination from the date of utilization of any NOL or credits. The Company does not have any tax positions for which it is reasonably possible the total amount of gross unrecognized tax benefits will increase or decrease within 12 months of the year-ended December 31, 2024.

​

Before January 1, 2022, IRC §174 provided a taxpayer may treat research or experimental expenditures which are paid or incurred by the taxpayer during the taxable year in connection with the taxpayer’s trade or business as expenses. As amended by TCJA, IRC §174 provides that in a case of a taxpayer's specified research or experimental expenditures for any taxable year beginning after December 31, 2021, no deduction is allowed for such expenditures. The expenditures must be charged to capital account and allowed an amortization deduction of such expenditures ratably over the 5-year period (15-year period in the case of any specified research expenditures which are attributable to foreign research). The Company capitalized $4,153 and $4,610 specified research or experimental expenditures for the year ended December 31, 2024 and 2023, respectively.