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INCOME TAXES | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES The components for income tax expense included in the accompanying consolidated statements of operations for the years ended December 31, 2022 and 2021 are as follows (in thousands):
| December 31, 2022 |  | December 31, 2021
Current state income tax expense | $ | (108) |  |  | $ | 267 |
Current foreign income tax expense | 373 |  |  | 220 |
Deferred federal income tax expense | — |  |  | — |
Income tax expense from continuing operations | $ | 265 |  |  | $ | 487 |
Income tax expense from discontinued operations | $ | 149 |  |  | $ | 321 |
A reconciliation of income taxes computed using the 21% U.S. federal statutory rate to the amount reflected in the accompanying consolidated statement of operations within net loss from continuing operations for the years ended December 31, 2022 and 2021 is as follows (in thousands):
| December 31, 2022 |  | December 31, 2021
Income tax benefit using U.S. federal statutory rate | $ | (633) |  |  | $ | (1,468) |
State income tax expense | (85) |  |  | 211 |
Foreign income tax expense | 155 |  |  | 205 |
Foreign tax rate difference | 377 |  |  | (95) |
Non-deductible expenses | 447 |  |  | (31) |
Change in valuation allowance | 1,677 |  |  | 1,458 |
Capital loss carryforward | (1,719) |  |  | — |
Other | 46 |  |  | 207 |
Total income tax expense from continuing operations | $ | 265 |  |  | $ | 487 |
The effects of temporary differences and carryforwards that give rise to deferred tax assets (liabilities) are as follows (in thousands):
| December 31, 2022 |  | December 31, 2021
Federal net operating loss carryforward | $ | 12,027 |  |  | $ | 13,446 |
Accrued interest to related parties, not deductible until paid | — |  |  | 119 |
Stock compensation | 511 |  |  | 109 |
Accrued compensation | 56 |  |  | 357 |
Basis of intangible assets | 191 |  |  | 250 |
Capital loss carryforward | 1,719 |  |  | — |
Other | 28 |  |  | 35 |
Valuation allowance | (9,774) |  |  | (8,097) |
Total deferred tax assets | 4,758 |  |  | 6,219 |
Basis of property, plant and equipment | 4,139 |  |  | 5,612 |
Prepaid expenses | 225 |  |  | 215 |
Basis in foreign entity | 394 |  |  | 325 |
Other | — |  |  | 67 |
Total deferred tax liabilities | 4,758 |  |  | 6,219 |
Net deferred tax liabilities | $ | — |  |  | $ | — |
At December 31, 2022, the Company has net operating loss carry forwards of approximately $57.3 million which may be used to offset future taxable income. The net operating loss carryforwards includes $42.8 million of losses arising prior to December 31, 2017 that expire in 2028 through 2037. Those arising in tax years after 2017 can be carried forward indefinitely. Also, for losses arising in taxable years beginning after December 31, 2017 the operating loss deduction is limited to 80% of taxable income (determined without regard to the deduction). Since the Company has not yet generated significant taxable income, a valuation allowance has been established to fully reserve the Company's net deferred tax assets at December 31, 2022. A change in ownership eliminated substantially all net operating loss carryforwards of an acquired subsidiary at July 26, 2019. The Company recognizes the tax benefit or obligation from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based not only on the technical merits of the tax position based on tax law, but also past administrative practices and precedents of the taxing authority. The tax benefits or obligations are recognized in our financial statements if there is a greater than 50% likelihood of the tax benefit or obligation being realized upon ultimate resolution. As of the years ended December 31, 2022 and 2021, the Company had no uncertain tax positions that required recognition. As of December 31, 2022, the Company's tax returns for years 2019 to 2021 remain subject to examination for both federal and state filings.

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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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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