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INCOME TAXES | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
INCOME TAXES | 8. INCOME TAXES Income Tax (Expense) Benefit A reconciliation of the U.S. federal statutory tax rate to our income tax (expense) benefit from continuing operations for 2021 and 2020, is as follows (in thousands):
|  | Years Ended December 31, |
|  | 2021 |  |  | 2020 |
U.S. statutory rate |  |  | 21.0 | % |  |  | 21.0 | %
Increase (decrease) resulting from: |  |  |  |  |  |  |  |
Permanent differences |  |  | (3.1 | )% |  |  | (0.1 | )%
State income taxes |  |  | 0.5 | % |  |  | 0.4 | %
Other |  |  | (0.1 | )% |  |  | (0.2 | )%
Discrete items |  |  |  |  |  |  |  |
Vesting of common stock |  |  | (1.4 | )% |  |  | (1.4 | )%
Change in valuation allowance |  |  | (44.3 | )% |  |  | (36.2 | )%
PPP Loan forgiveness |  |  | 39.5 | % |  |  | — |
Return to provision and other |  |  | (11.6 | )% |  |  | 16.9 | %
Income tax (expense) benefit |  |  | 0.5 | % |  |  | 0.4 | %
Significant components of our income tax (expense) benefit from continuing operations for 2021 and 2020, were as follows (in thousands):
|  | Years Ended December 31, |
|  | 2021 |  |  | 2020 |
Current |  |  |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |
State |  |  | — |  |  |  | (20 | )
Total current |  |  | — |  |  |  | (20 | )
Deferred |  |  |  |  |  |  |  |
Federal |  |  | 2,185 |  |  |  | 2,722 |
State |  |  | (20 | ) |  |  | 2,455 |
Valuation allowance |  |  | (2,141 | ) |  |  | (5,105 | )
Total deferred |  |  | 24 |  |  |  | 72 |
Income tax (expense) benefit |  | $ | 24 |  |  | $ | 52 |
Deferred Taxes Significant components of our deferred tax assets and liabilities at December 31, 2021 and 2020, were as follows (in thousands):
|  | December 31, |
|  | 2021 |  |  | 2020 |
Deferred tax assets |  |  |  |  |  |  |  |
Leases |  | $ | 233 |  |  | $ | 319 |
Employee benefits |  |  | 1,208 |  |  |  | 1,471 |
Accrued losses on uncompleted contracts |  |  | 2,572 |  |  |  | 3,015 |
Stock based compensation expense |  |  | 247 |  |  |  | 225 |
Federal net operating losses |  |  | 21,724 |  |  |  | 19,345 |
State net operating losses |  |  | 3,299 |  |  |  | 3,620 |
R&D and other tax credits |  |  | 938 |  |  |  | 806 |
Other |  |  | 545 |  |  |  | 398 |
Total deferred tax assets |  |  | 30,766 |  |  |  | 29,199 |
Deferred tax liabilities |  |  |  |  |  |  |  |
Property, plant and equipment and AHFS |  |  | (1,285 | ) |  |  | (2,632 | )
Prepaid insurance |  |  | (231 | ) |  |  | (511 | )
Total deferred tax liabilities |  |  | (1,516 | ) |  |  | (3,143 | )
Net deferred tax assets |  |  | 29,250 |  |  |  | 26,056 |
Valuation allowance |  |  | (29,331 | ) |  |  | (26,168 | )
Net deferred taxes (1) |  | $ | (81 | ) |  | $ | (112 | )
| (1) | Amounts are included in other noncurrent liabilities on our Balance Sheet.
At December 31, 2021 and 2020, we had total DTAs of $30.8 million and $29.2 million, respectively (including U.S. federal net operating losses (“NOL(s)”) DTAs of $21.7 million and $19.3 million, respectively). On a periodic and ongoing basis, we evaluate our DTAs (including our NOL DTAs) and assess the appropriateness of our valuation allowance(s) (“VA(s)”). In assessing the need for a VA, we consider both positive and negative evidence related to the likelihood of realizing our DTAs. If, based upon the available evidence, our assessment indicates that it is more likely than not that some or all of the DTAs will not be realized, we record a VA. Our assessments include, among other things, the amount of taxable temporary differences that will result in future taxable income, the value and quality of our backlog, evaluations of existing and anticipated market conditions, analysis of recent and historical operating results (including cumulative losses over multiple periods) and projections of future results and strategic plans, as well as asset expiration dates. As a result of our assessment and due to cumulative losses for the three years ended December 31, 2021, we believe the negative evidence outweighs the positive evidence with respect to our ability to realize our U.S. federal NOL DTAs, and accordingly, at December 31, 2021 and 2020, we had VAs of $29.3 million and $26.2 million, respectively, offsetting our total DTAs. At December 31, 2021, we had gross U.S. federal NOL carryforwards (excluding VAs) of $103.4 million, of which $42.3 million will expire in 2037 with the remaining U.S. federal NOL carryforwards eligible to be carried forward indefinitely, subject to an 80% limitation on taxable income in each year. We had gross state NOL carryforwards (excluding VAs) of $45.1 million, which will expire from 2035 through 2041. Uncertain Tax Positions Reserves for uncertain tax positions are recognized when we consider it more likely than not that additional tax will be due in excess of amounts reflected in our income tax returns, irrespective of whether or not we have received tax assessments. Interest and penalties on uncertain tax positions are recorded within income tax expense. At December 31, 2021 and 2020, we had no material reserves for uncertain tax positions. Tax returns subject to examination by the U.S. Internal Revenue Service are open for years after 2015.

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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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