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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income tax expense for the years ended December 31, 2024 and 2023 attributable to loss from operations is presented below.
CurrentDeferredTotal
Year ended December 31, 2024
Federal$23 $— $23 
State7 — 7 
Foreign274 117 391 
$304 $117 $421 
Year ended December 31, 2023
Federal$(8)$— $(8)
State12 — 12 
Foreign356 (42)314 
$360 $(42)$318 

Actual income tax expense differs from the “expected” income tax expense computed by applying the United States Federal statutory income tax rate of 21% for both 2024 and 2023 to loss before income tax expense, as follows:
 Year Ended December 31,
 20242023
Income tax benefit at Federal statutory income tax rate$(2,232)$(3,172)
Increase (decrease) in income taxes resulting from:
State income tax (expense) benefit, net of federal benefit(48)971 
State research and development, investment credits423 291 
Non-deductible meals & entertainment31 13 
Non-deductible stock compensation expense479 644 
Non-deductible compensation under 162(m)— 49 
Foreign exchange loss110 — 
Foreign tax rate differential102 106 
Federal research and development credits— 110 
Uncertain tax positions51 55 
Provision to tax return adjustments(15)104 
Change in valuation allowance1,344 3 
Goodwill impairment— 1,157 
Non-deductible foreign transaction taxes110 — 
Other66 (13)
     Income tax expense$421 $318 
Loss before income tax expense determined by tax jurisdiction, are as follows:
 Year Ended December 31,
 20242023
United States$(10,392)$(9,777)
Foreign(235)(5,327)
Total$(10,627)$(15,104)
Deferred tax assets and liabilities for the periods presented consisted of the following:
 December 31,
 20242023
Deferred tax assets:
Accounts receivable, due to allowance for doubtful accounts$112 $185 
Inventories2,188 1,633 
Operating loss carryforwards5,772 5,179 
Stock-based compensation expense436 666 
Property and equipment, due to difference in depreciation74 68 
Research and development tax credit carryforwards5,852 5,852 
Foreign tax credit carryforwards2,345 2,345 
State tax credit carryforwards2,962 3,378 
Capitalized research and development5,570 5,354 
Warranty reserve130 177 
Accrued expenses333 640 
Lease liability244 215 
Gross deferred tax assets26,018 25,692 
Less valuation allowance(23,179)(21,835)
Total deferred tax assets2,839 3,857 
Deferred tax liabilities:
Property and equipment, due to differences in depreciation(2,430)(3,386)
Right of use asset(267)(216)
Total deferred tax liabilities(2,697)(3,602)
Net deferred tax asset$142 $255 
Deferred income tax asset$157 $256 
Deferred income tax liability$(15)$(1)

As of December 31, 2024 the Company has federal and state tax loss carryforwards of approximately $25,952 and $3,574, respectively. The federal loss carryforward has no expiration date. The state losses expire through the year 2044. As of December 31, 2024, the Company had federal research and development tax credit carryforwards in the amount of $5,843 and other general business credits of $9 that expire in years 2029 through 2042. As of December 31, 2024, the Company had foreign tax credit carryforwards in the amount of $2,345 that expire in years 2026 through 2027. As of December 31, 2024, the Company had state research and development tax credit carryforwards in the amount of $3,641 that expire in years 2025 through 2031. The Company also had other state tax credit carryforwards of $109 available to reduce future state tax expense that expire in years 2024 through 2031.

The Company’s ability to utilize these net operating loss carryforwards and tax credit carryforwards 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, 2024, the valuation increased by $1,343. The change was primarily the result of the current year loss and an increase in the inventory valuation reserve. 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, 2024, 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, excluding penalties and interest, are as follows:
 Year Ended December 31,
 20242023
Unrecognized tax benefits as of January 1$1,044 $1,482 
Gross decrease in unrecognized tax benefits - prior year tax positions— (418)
Gross decrease in unrecognized tax benefits due to currency fluctuations - prior year tax positions(159)— 
Lapse of statute of limitations(14)(20)
Unrecognized tax benefits as of December 31$871 $1,044 

All unrecognized tax benefits as of December 31, 2024 and 2023, if recognized, would result in a reduction of the Company's effective tax rate.

The Company recorded interest and penalties of $80 and $74 in its consolidated statement of operations for the years ended December 31, 2024 and 2023, 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 $431 and $366 as of December 31, 2024 and 2023, 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, 2024 may decrease approximately $15 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 2021, 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.