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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Loss from Continuing Operations Before Provision for Income Taxes | The components of loss before provision for income taxes consist of the following (in thousands):
|  | Years Ended December 31, |
(In Thousands) |  | 2021 |  |  | 2022 |
United States |  | $ | (1,173 | ) |  | $ | (7,525 | )
Foreign |  |  | (2,985 | ) |  |  | (536 | )
Loss before provision for income taxes |  | $ | (4,158 | ) |  | $ | (8,061 | )
Provision for Income Taxes | The provision for income taxes consists of the following (in thousands):
|  | Years Ended December 31, |
(In Thousands) |  | 2021 |  | 2022 |
Current federal provision |  |  |  |  |  |  |
State |  | $ | 204 |  | $ | 58 |
Foreign |  |  | - |  |  | 39 |
Deferred provision (benefit) |  |  |  |  |  |  |
Federal |  |  | 20 |  |  | 67 |
State |  |  | 106 |  |  | 20 |
Foreign |  |  | (98 | ) |  | — |
Total income tax expense (benefit) |  | $ | 232 |  | $ | 184 |
Computation of Income Tax Expense (Benefit) from Continuing Operations Using Federal Statutory Rate | The Company’s income tax expense (benefit) differed from the amounts computed by applying the U.S. federal statutory rate to loss before provision for income taxes as a result of the following:
| Years Ended December 31, |
(In Thousands) | 2021 |  | 2021 |  | 2022 |
| As Reported |  | As Adjusted |  |  |  |
Income tax benefit at U.S. statutory rate | $ | (873 | ) | $ | (873 | ) | $ | (1,693 | )
State taxes, net of valuation allowance |  | (448 | ) |  | 313 |  |  | 79 |
Foreign tax differential |  | (747 | ) |  | (747 | ) |  | (150 | )
Non-deductible transaction costs |  | (1 | ) |  | 2,496 |  |  | 16 |
Stock-based compensation (1) |  | 434 |  |  | 1,985 |  |  | 190 |
Gain on CARES Act loan |  | (1,089 | ) |  | (1,089 | ) |  | 32 |
Valuation allowance |  | 3,334 |  |  | (1,474 | ) |  | 1,815 |
Goodwill impairment |  | 98 |  |  | 98 |  |  | — |
Tax credits |  | (544 | ) |  | (544 | ) |  | (237 | )
Other expenses |  | 68 |  |  | 67 |  |  | 132 |
Total income tax expense (benefit) | $ | 232 |  | $ | 232 |  | $ | 184 |
(1) Includes non-deductible stock-based compensation and excess tax benefits and shortfalls from stock-based compensation.
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below and reflects the 21% U.S. federal statutory rate for 2021 and 2022 (in thousands):
|  | Years Ended December 31, |
(In Thousands) |  | 2021 |  | 2021 |  | 2022 |
Deferred tax assets: |  | As Reported |  | As Adjusted |  |  |  |
Accrued liabilities not currently deductible |  | $ | 476 |  | $ | 476 |  | $ | 434 |
Intangible assets- excess of financial statement over tax amortization |  |  | 5,985 |  |  | 3,245 |  |  | 3,341 |
Stock-based compensation |  |  | 2,405 |  |  | 442 |  |  | 675 |
Federal net operating and capital losses |  |  | 35,052 |  |  | 35,052 |  |  | 35,724 |
State, local and foreign net operating and capital loss carryforwards |  |  | 3,353 |  |  | 4,552 |  |  | 5,326 |
Research & experimental tax and other credit carryforwards |  |  | 5,184 |  |  | 5,685 |  |  | 5,421 |
Lease liability |  |  | 866 |  |  | 866 |  |  | 426 |
Capitalized research and development |  |  | — |  |  | — |  |  | 1,054 |
Other |  |  | 547 |  |  | 547 |  |  | 460 |
Gross deferred tax assets |  |  | 53,868 |  |  | 50,865 |  |  | 52,861 |
Valuation allowance |  |  | (53,066 | ) |  | (49,643 | ) |  | (51,795 | )
Net deferred tax assets |  | $ | 802 |  | $ | 1,222 |  | $ | 1,066 |
Deferred tax liabilities: |  |  |  |  |  |  |  |  |  |
Intangible assets-excess of tax over financial statement amortization |  |  | (393 | ) |  | (813 | ) |  | (1,107 | )
Right-of-use lease asset |  |  | (595 | ) |  | (595 | ) |  | (192 | )
Net deferred tax liabilities |  | $ | (186 | ) | $ | (186 | ) | $ | (233 | )
Summary of Activity Related to Tax Contingencies Recorded As an Offset to Deferred Tax Assets | The following table summarizes activity related to tax contingencies from January 1, 2021 to December 31, 2022 which are recorded as an offset to deferred tax assets (in thousands):
(In Thousands) |  |  |  |
Gross tax contingencies—January 1, 2021 |  | $ | 1,365 |
Gross increases to current period tax positions |  |  | 72 |
Gross decreases to tax positions associated with prior periods |  |  | (55 | )
Gross tax contingencies—December 31, 2021 |  |  | 1,382 |
Gross increases to current period tax positions |  |  | 2 |
Gross tax contingencies—December 31, 2022 |  | $ | 1,384 |

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