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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Note 13. Income Taxes The Company’s income tax provision for the years ended December 31, 2021 and 2020, consists of the following (in thousands): Current
|  | December 31, |
|  | 2021 |  |  | 2020 |
Federal |  | $ | — |  |  | $ | 6 |
Foreign |  |  | 16 |  |  |  | — |
State |  |  | 172 |  |  |  | 41 |
Provision (benefit) for income taxes |  | $ | 188 |  |  | $ | 47 |
Deferred tax assets and liabilities reflect the net tax effect of temporary differences between carrying value of assets and liabilities for financial reporting purposes and the tax basis of these assets and liabilities as measured by income tax law. The income tax effect of temporary differences that give rise to deferred tax assets and (liabilities) consist of the following (in thousands):
|  | December 31, |
|  | 2021 |  |  | 2020 |
Deferred tax assets: |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 35,186 |  |  | $ | 22,208 |
Deferred compensation |  |  | 1,812 |  |  |  | 899 |
Research and development credits |  |  | 1,497 |  |  |  | 1,071 |
Operating lease liability |  |  | 405 |  |  |  | 138 |
Provision for bad debt |  |  | 163 |  |  |  | 75 |
Provision for excess and obsolete inventories |  |  | 28 |  |  |  | 282 |
Other |  |  | 104 |  |  |  | 19 |
Gross deferred tax assets |  |  | 39,195 |  |  |  | 24,692 |
Less: Valuation allowance |  |  | (38,804 | ) |  |  | (24,543 | )
Deferred tax assets, net of valuation allowance |  |  | 391 |  |  |  | 149 |
Operating lease right-of-use assets |  |  | (391 | ) |  |  | (135 | )
Fixed Assets |  |  | — |  |  |  | (14 | )
Deferred tax liabilities: |  |  | (391 | ) |  |  | (149 | )
Net deferred tax assets |  | $ | — |  |  | $ | — |
Internal Revenue Code (IRC) Section 382 limits the use of federal net operating losses and income tax credit carryforwards in certain situations where changes occur in stock ownership of a company. If the Company should have an ownership change of more than 50% of the value of the Company’s capital stock, utilization of the carryforwards could be restricted. The reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows (in thousands):
|  | December 31, |
|  | 2021 |  |  | 2020 |
Tax at statutory federal rate |  |  | 21 | % |  |  | 21 | %
State tax, net of federal benefit |  |  | 5 | % |  |  | 5 | %
Research and development credit |  |  | 1 | % |  |  | 1 | %
Change in valuation allowance |  |  | (24 | )% |  |  | (27 | )%
Other |  |  | (3 | )% |  |  | — |
Effective tax rate |  |  | — |  |  |  | — |
A valuation allowance is recorded when it is more likely than not that some portion of the deferred tax assets will not be realized. As of each reporting date, the Company’s management considers all evidence, both positive and negative, that could affect management’s view with regard to future realization of deferred tax assets. As of December 31, 2021 and 2020, a full valuation allowance for deferred tax assets was recorded as management believes it is more likely than not that all of the deferred tax assets will not be realized in the future. At December 31, 2021, and 2020, the Company has a net operating loss carryforward for federal income tax purposes of approximately $136.8 million and $85.3 million, respectively. At December 31, 2021 and 2020, the Company has a net operating loss carryforward for state income tax purposes of approximately $126.6 million and $83.5 million, respectively. Net operating losses prior to 2018 of $14.8 million will expire, if not utilized, beginning in 2032 for federal and state income tax purposes. As of December 31, 2021 and 2020, the Company has federal research and development income tax credit carryforwards of approximately $1.2 million and $0.8 million, respectively. As of December 31, 2021 and 2020, the Company has state research and development income tax credit carryforwards of approximately $0.9 million and $0.9 million, respectively. The Federal income tax credits begin to expire in 2032. The Company has a full valuation allowance on research and development tax credits as of December 31, 2021 and 2020. The state research and development credits can be carried forward indefinitely. The total amount of uncertain tax positions (UTP) on research and development tax credits is $0.6 million and $0.4 million as of December 31, 2021 and 2020, respectively. The Company does not expect any significant change to the UTP balances in the next 12 months. The following table summarizes the activity related to the unrecognized tax benefits (in thousands):
|  | December 31, |
|  | 2021 |  |  | 2020 |
Unrecognized tax benefits at the beginning of the year |  | $ | 417 |  |  | $ | 304 |
Additions based on tax positions related to the current year |  |  | 163 |  |  |  | 113 |
Additions for tax positions of prior years |  |  | — |  |  |  | — |
Unrecognized tax benefits at the end of the year |  | $ | 580 |  |  | $ | 417 |
The Company does not have any material uncertain tax positions as of December 31, 2021 and does not expect any significant change to such balances in the next twelve months. The Company currently has no federal or state tax examinations in progress nor has it had any federal or state tax examinations since its inception. Due to the history of net operating losses, the Company’s federal and state tax returns remain open to examination by the tax authorities

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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 http://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 http://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 http://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 http://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 http://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 http://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 http://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 http://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 http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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