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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Note 15 - Income Taxes The provision (benefit) for income taxes for the periods indicated includes current and deferred components as follows:
|  |  | Year Ended December 31 |
|  |  | 2022 |  |  |  | 2021 |
Current Tax Expense/(Benefit) |  |  |  |  |  |  |  |
Federal |  | $ |  | - |  |  | $ |  | (10 | )
Foreign |  |  |  | 2,285 |  |  |  |  | 1,533 |
State |  |  |  | 40 |  |  |  |  | 26 |
|  |  |  | 2,325 |  |  |  |  | 1,549 |
Deferred Tax Expense/(Benefit) |  |  |  |  |  |  |  |
Federal |  |  |  | 1 |  |  |  |  | - |
Foreign |  |  |  | (14 | ) |  |  |  | (136 | )
|  |  |  | (13 | ) |  |  |  | (136 | )
Total |  | $ |  | 2,312 |  |  | $ |  | 1,413 |
The (provision) benefit for income taxes for the periods indicated differs from the amounts computed by applying the federal statutory rate as follows:
|  |  |  |  |  | Year Ended December 31
|  |  |  |  |  | 2022 |  |  | 2021 |  |
Statutory U.S. federal income tax rate |  |  | 21.0 |  | % |  |  |  | 21.0 |  | %
State income taxes, net of federal tax benefit |  |  | 0.4 |  | % |  |  |  | 0.7 |  | %
Valuation allowance |  |  | (5.8 | ) | % |  |  |  | (20.4 | ) | %
Provision to return |  |  | (0.2 | ) | % |  |  |  | 0.0 |  | %
Foreign rate differential |  |  | (1.5 | ) | % |  |  |  | (1.0 | ) | %
Foreign tax adjustments |  |  | (1.1 | ) | % |  |  |  | 0.0 |  | %
Deferred tax adjustments |  |  | (17.9 | ) | % |  |  |  | 0.4 |  | %
Nondeductible expenses and other |  |  | (1.2 | ) | % |  |  |  | (4.2 | ) | %
Effective income tax rate |  |  | (6.3 | ) | % |  |  |  | (3.5 | ) | %
Deferred income taxes result from temporary differences in the financial and tax basis of assets and liabilities. Components of deferred tax assets (liabilities) consisted of the following:
|  | December 31, 2022 |  |  | December 31, 2021 |
Description | Assets |  |  | Liabilities |  |  | Assets |  |  | Liabilities |
Accrued post-retirement and pension benefits |  | $ | 360 |  |  | $ | - |  |  | $ | 149 |  |  | $ | - |
Intangible assets |  |  | - |  |  |  | (26 | ) |  |  | - |  |  |  | (22 | )
Accrued expenses |  |  | 2,326 |  |  |  | - |  |  |  | 1,367 |  |  |  | - |
Accrued warranty costs |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Prepaid expenses |  |  | - |  |  |  | (1,155 | ) |  |  | - |  |  |  | - |
Deferred state and local incentive revenue |  |  | - |  |  |  | - |  |  |  | 537 |  |  |  | - |
Accrued severance |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Inventory valuation |  |  | 1,219 |  |  |  | - |  |  |  | 496 |  |  |  | - |
Property, plant and equipment and railcars on operating leases |  |  | - |  |  |  | (1,166 | ) |  |  | 103 |  |  |  | - |
Net operating loss, tax credit, and interest carryforwards |  |  | 65,218 |  |  |  | - |  |  |  | 62,536 |  |  |  | - |
Stock-based compensation expense |  |  | 1,715 |  |  |  | - |  |  |  | 1,539 |  |  |  | - |
Other |  |  | 371 |  |  |  | (1,448 | ) |  |  | 99 |  |  |  | - |
Right of use asset |  |  | - |  |  |  | (10,902 | ) |  |  | - |  |  |  | (4,780 | )
Lease liability |  |  | 11,376 |  |  |  | - |  |  |  | 5,175 |  |  |  | - |
|  |  | 82,585 |  |  |  | (14,697 | ) |  |  | 72,001 |  |  |  | (4,802 | )
Valuation Allowance |  |  | (67,881 | ) |  |  | - |  |  |  | (67,204 | ) |  |  | - |
Deferred tax assets (liabilities) |  | $ | 14,704 |  |  | $ | (14,697 | ) |  | $ | 4,797 |  |  | $ | (4,802 | )
Increase (decrease) in valuation allowance |  | $ | 677 |  |  |  |  |  | $ | 7,591 |  |  |  |
A valuation allowance is provided when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Management has concluded that, based on evaluation of the positive and negative evidence, primarily the history of US and China operating losses, we will not more likely than not realize the benefit of the US and China deferred tax assets. The Company has certain pretax state net operating loss carryforwards of $220,406 which will expire between 2023 and 2042, for which a full valuation allowance has been recorded. The Company also has federal net operating loss carryforwards, tax credits, and interest carryforwards of $210,223, $2,016, and $33,392, respectively, which will begin to expire in 2032, for which a full valuation allowance also has been recorded. The Company has Chinese net operating loss carryforwards of $356 which will expire between 2023 and 2027 for which a full valuation allowance also has been recorded. As of December 31, 2022, the Company has released a valuation allowance in Mexico to realize its deferred tax assets of $0.1 as a result of significant positive evidence, most notably three years of cumulative income in Mexico and management expectations of continued profitability. The Company does no t have any unrecognized tax benefit that, if recognized, would affect the Company's effective tax rate as of December 31, 2022 and 2021. The Company's income tax provision included $0 of expenses related to interest and penalties for the years ended December 31, 2022 and 2021. The Company records interest and penalties as a component of income tax expense. However, as there are no unrecognized tax benefits for the year ended 2022 and 2021, the Company has zero penalties or interest accrued at December 31, 2022 and 2021, respectively. The Company and/or its subsidiaries file income tax returns with the U.S. federal government and in various state and foreign jurisdictions. A summary of tax years that remain subject to examination is as follows:
Jurisdiction |  |  |  |  |  | Earliest Year
U.S. Federal |  |  |  |  |  | 2019
States: |  |  |  |  |  |
Pennsylvania |  |  |  |  |  | 2001
Texas |  |  |  |  |  | 2019
Illinois |  |  |  |  |  | 2010
Virginia |  |  |  |  |  | 2019
Colorado |  |  |  |  |  | 2010
Indiana |  |  |  |  |  | 2019
Nebraska |  |  |  |  |  | 2016
Alabama |  |  |  |  |  | 2016
Foreign: |  |  |  |  |  |
China |  |  |  |  |  | 2019
Mexico |  |  |  |  |  | 2020

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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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