XML 59 R19.htm IDEA: XBRL DOCUMENT
v3.24.1

Income Tax | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Tax | Income Tax The following table summarizes the components of the provision for (benefit from) income tax (in thousands):
| Year Ended December 31,
| 2023 |  | 2022
Current: |  |  |
Federal | $ | — |  |  | $ | — |
State | (102) |  |  | 180 |
Total current taxes | (102) |  |  | 180 |
Deferred: |  |  |
Federal | 1,839 |  |  | 1,281 |
State | 178 |  |  | (195) |
Total deferred taxes | 2,017 |  |  | 1,086 |
Other: |  |  |
Valuation allowance | (1,547) |  |  | (1,141) |
Provision for (benefit from) income taxes | $ | 368 |  |  | $ | 125 |
The following table presents a reconciliation the statutory federal income tax rate to the Company's effective income tax rate:
| Year Ended December 31,
| 2023 |  | 2022
Federal statutory rate | 21.00 | % |  | 21.00 | %
State income taxes, net of federal benefit | 4.64 | % |  | 5.67 | %
Permanent differences | 0.50 | % |  | (2.40) | %
Return to provision | (0.99) | % |  | 0.00 | %
Change in valuation allowance | (18.99) | % |  | (14.54) | %
Change in state tax rate | (0.21) | % |  | (5.70) | %
Other | (1.44) | % |  | (2.45) | %
Effective tax rate | 4.51 | % |  | 1.59 | %
The Company's effective tax rates for the years ended December 31, 2023 and 2022 differ from the U.S. federal statutory tax rate of 21%, primarily due to state income taxes and the impact of valuation allowance releases of $1.5 million and $1.1 million, respectively. 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. The Company has recorded valuation allowances for certain tax attributes and deferred tax assets due to the existence of sufficient uncertainty regarding the future realization of those deferred tax assets through future taxable income. Based on its recent financial performance and current forecasts of future operating results, the Company conducts a quarterly analysis to determine if it is more likely than not that a portion of the deferred tax assets related to its net operating loss carryforwards will be utilized in future periods. The Company's effective tax rate in any given period is directly impacted by the timing and magnitude of any partial valuation allowance releases. The following table summarizes the components of the Company's deferred tax assets and liabilities (in thousands):
| December 31,
| 2023 |  | 2022
Deferred tax assets: |  |  |
Net operating loss and tax credit carryforwards | $ | 31,465 |  |  | $ | 33,532 |
Stock-based compensation | 471 |  |  | 481 |
Investments in affiliates | 1,395 |  |  | 1,237 |
Right of use lease liability | 1,825 |  |  | 2,017 |
Bonus accrual | 1,172 |  |  | 1,246 |
Goodwill amortization | — |  |  | (1) |
Valuation allowance | (23,666) |  |  | (25,214) |
Total deferred tax assets | 12,662 |  |  | 13,298 |
Deferred tax liabilities: |  |  |
Right of use lease asset | (1,739) |  |  | (1,943) |
Depreciation and amortization | (38) |  |  | — |
Total deferred tax liabilities | (1,777) |  |  | (1,943) |
Net deferred income tax assets (liabilities) | $ | 10,885 |  |  | $ | 11,355 |
As of December 31, 2023, the Company had $122.8 million of net operating loss (“NOL") carryforwards. These NOLs, if unused, will begin expiring in 2028. Under Code Section 382 (“Section 382”) rules, if a change of ownership is triggered, the Company’s NOL assets and possibly certain other deferred tax assets may be impaired. Given Section 382’s broad definition, an ownership change could be the unintended consequence of otherwise normal market trading in the Company’s stock that is outside of the Company’s control. In an effort to preserve the availability of these NOLs, the Company has adopted a Section 382 rights agreement that is scheduled to expire on March 27, 2025. The Section 382 rights agreement helps to reduce the likelihood of an unintended “ownership change”, thus preserving the value of these future tax benefits. We estimate that as of December 31, 2023, the three-year cumulative shift in ownership of the Company’s stock had not triggered a limitation in the use of our NOL asset. As of December 31, 2023, there were no uncertain tax positions that, if recognized, would affect the Company's effective tax rate. We file U.S. and state income tax returns in jurisdictions with varying statutes of limitations. All of our income tax returns remain subject to examination by federal and state tax authorities due to the availability of our NOL carryforwards.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration