XML 27 R16.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income tax (benefit) expense for the years ended December 31, 2021 and 2020 attributable to loss from operations is presented below.
| Current |  | Deferred |  | Total
Year ended December 31, 2021 |  |  |  |  |
Federal | $ | 27 |  |  | $ | — |  |  | $ | 27 |
State | — |  |  | — |  |  | — |
Foreign | 44 |  |  | (179) |  |  | (135) |
| $ | 71 |  |  | $ | (179) |  |  | $ | (108) |
Year ended December 31, 2020 |  |  |  |  |
Federal | $ | 240 |  |  | $ | — |  |  | $ | 240 |
State | — |  |  | — |  |  | — |
Foreign | 321 |  |  | (387) |  |  | (66) |
| $ | 561 |  |  | $ | (387) |  |  | $ | 174 |
Actual income tax (benefit) expense differs from the “expected” income tax (benefit) expense computed by applying the United States Federal statutory income tax rate of 21% for both 2021 and 2020 to loss before tax (benefit) expense, as follows:
| Year Ended December 31,
| 2021 |  | 2020
Income tax benefit at Federal statutory income tax rate | $ | (2,073) |  |  | $ | (4,571) |
Increase (decrease) in income taxes resulting from: |  |  |
State income tax benefit, net of federal benefit | (342) |  |  | (600) |
State research and development, investment credits | (137) |  |  | (213) |
Non-deductible meals & entertainment | 1 |  |  | 22 |
Non-deductible stock compensation expense | (194) |  |  | 19 |
Non-deductible compensation under 162(m) | 35 |  |  | — |
Foreign tax rate differential | 58 |  |  | 235 |
Federal research and development credits | (607) |  |  | (707) |
Uncertain tax positions | 32 |  |  | 39 |
Provision to tax return adjustments | 33 |  |  | 144 |
Change in valuation allowance | 4,648 |  |  | 3,980 |
PPP loan forgiveness | (1,455) |  |  | — |
Impairment of goodwill and intangibles | — |  |  | 1,834 |
Prior period adjustments | (117) |  |  | — |
Other | 10 |  |  | (8) |
Income tax (benefit) expense | $ | (108) |  |  | $ | 174 |
Loss before income tax (benefit) expense determined by tax jurisdiction, are as follows:
| Year Ended December 31,
| 2021 |  | 2020
United States | $ | (10,040) |  |  | $ | (11,862) |
Foreign | 169 |  |  | (9,904) |
Total | $ | (9,871) |  |  | $ | (21,766) |
Deferred tax assets and liabilities for the periods presented consisted of the following:
| December 31,
| 2021 |  | 2020
Deferred tax assets: |  |  |
Accounts receivable, due to allowance for doubtful accounts | $ | 373 |  |  | $ | 221 |
Inventories | 1,211 |  |  | 1,209 |
Operating loss carry-forwards | 5,784 |  |  | 2,744 |
Stock-based compensation expense | 1,106 |  |  | 874 |
Property and equipment, due to difference in depreciation | 1,978 |  |  | 841 |
Research and development tax credit carry-forwards | 6,247 |  |  | 5,640 |
Foreign tax credit carry-forwards | 2,345 |  |  | 2,345 |
State tax credit carry-forwards | 3,975 |  |  | 3,838 |
Capitalized research and development | 2,690 |  |  | 3,154 |
Warranty reserve | 277 |  |  | 429 |
Accrued expenses | 1,174 |  |  | 1,216 |
Lease liability | 700 |  |  | 1,574 |
Gross deferred tax assets | 27,860 |  |  | 24,085 |
Less valuation allowance | (27,080) |  |  | (22,432) |
Total deferred tax assets | 780 |  |  | 1,653 |
Deferred tax liabilities: |  |  |
Purchased intangible assets | (199) |  |  | (384) |
Property and equipment, due to differences in depreciation | (52) |  |  | (50) |
Right of use asset | (688) |  |  | (1,564) |
Total deferred tax liabilities | (939) |  |  | (1,998) |
Net deferred tax liability | $ | (159) |  |  | $ | (345) |
Deferred income tax asset | $ | 56 |  |  | $ | 73 |
Deferred income tax liability | $ | (215) |  |  | $ | (418) |
As of December 31, 2021 the Company has federal and state tax loss carryforwards of approximately $22,103 and $16,878, respectively. The federal loss carryforward has no expiration date. The state losses expire through the year 2041. As of December 31, 2021, the Company had federal research and development tax credit carry-forwards in the amount of $6,238 and other general business credits of $9 that expire in years 2028 through 2041. As of December 31, 2021, the Company had foreign tax credit carry-forwards in the amount of $2,345 that expire in years 2026 through 2027. As of December 31, 2021, the Company had state research and development tax credit carry-forwards in the amount of $4,918 that expire in years 2022 through 2028. The Company also had other state tax credit carry-forwards of $114 available to reduce future state tax expense that expire in years 2022 through 2028. The Company’s ability to utilize these net operating loss carry-forwards and tax credit carry-forwards may be limited in the future if the Company experiences an ownership change pursuant to Internal Revenue Code Section 382. An ownership change occurs when the ownership percentages of 5% or greater stockholders change by more than 50% over a three-year period. In assessing the realizability of its net deferred tax assets, the Company considered whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of December 31, 2021, the Company concluded that a net increase of $4,648 of the valuation allowance was appropriate. The change was the result of an increase in domestic tax credits, net operating loss balances, and property and equipment differences due to depreciation. As part of the Company’s analysis, the Company evaluated, among other factors, its recent history of generating tax losses and its near-term forecasts of future taxable income or losses. As of December 31, 2021, unremitted foreign earnings, which were not significant, have been retained by the Company's foreign subsidiaries for indefinite reinvestment. Upon repatriation of those earnings, in the form of dividends or otherwise, the Company could be subject to state tax and withholding taxes payable to various foreign countries. The Company establishes reserves for uncertain tax positions based on management’s assessment of exposure associated with tax deductions, permanent tax differences, and tax credits. The tax reserves are analyzed periodically and adjustments are made as events occur that warrant adjustment to the reserve. The Company's policy is to recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense. The aggregate changes in the total gross amount of unrecognized tax benefits are as follows:
| Year Ended December 31,
| 2021 |  | 2020
Unrecognized tax benefits as of January 1 | $ | 1,771 |  |  | $ | 1,897 |
Gross decrease in unrecognized tax benefits - prior year tax positions | (104) |  |  | (105) |
Lapse of statute of limitations | (14) |  |  | (21) |
Unrecognized tax benefits as of December 31 | $ | 1,653 |  |  | $ | 1,771 |
All unrecognized tax benefits as of December 31, 2021 and 2020, if recognized, would result in a reduction of the Company's effective tax rate. The Company recorded interest and penalties of $46 and $61 in its consolidated statement of operations for the years ended December 31, 2021 and 2020, respectively. Total accrued interest and penalties related to tax positions taken on our tax returns and included in non-current income taxes payable was approximately $255 and $208 as of December 31, 2021 and 2020, respectively. The timing of any resolution of income tax examinations is highly uncertain, as are the amounts and timing of any settlement payment. These events could cause fluctuations in the balance sheet classification of current and non-current assets and liabilities. The Company estimates that it is reasonably possible that the balance of unrecognized tax benefits as of December 31, 2021 may decrease approximately $19 in the next twelve months as a result of a lapse of statutes of limitation and settlements with taxing authorities. The Company’s tax jurisdictions include the United States, the United Kingdom, Denmark, Cyprus, Norway, Brazil, Singapore, Japan, and India. In general, the statute of limitations with respect to the Company's United States federal income taxes has expired for years prior to 2018, and the relevant state and foreign statutes vary. However, preceding years remain open to examination by United States federal and state and foreign taxing authorities to the extent of future utilization of net operating losses and research and development tax credits generated in each preceding year.

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 -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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration