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INCOME TAXES | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
INCOME TAXES | NOTE 9—INCOME TAXES (a) Composition of loss before income taxes is as follows (in thousands): COMPOSITION OF LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|  | Year ended December 31, |
|  | 2022 |  |  | 2021 |
Domestic |  | $ | (631 | ) |  | $ | (13 | )
Income tax expense consists of the following (in thousands): COMPONENTS OF INCOME TAX EXPENSE
|  | Year ended December 31, |
|  | 2022 |  |  | 2021 |
Current: |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |
State and local |  |  | — |  |  |  | — |
Current income tax expense |  |  | — |  |  |  | — |
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | — |  |  |  | — |
State and local |  |  | — |  |  |  | — |
Deferred income tax expense |  |  | — |  |  |  | — |
Total income tax expense |  | $ | — |  |  | $ | — |
(b) Effective Income Tax Rates Set forth below is a reconciliation between the federal tax rate and the Company’s effective income tax rates with respect to continuing operations: SUMMARY OF RECONCILIATION BETWEEN FEDERAL TAX RATE
|  | Year ended December 31, |
|  | 2022 |  |  | 2021 |
Statutory Federal rates |  |  | 21 | % |  |  | 21 | %
Increase (decrease) in income tax rate resulting from: |  |  |  |  |  |  |  |
Other, net (primarily permanent differences) |  |  | (3 | )% |  |  | (121 | )%
Valuation allowance |  |  | (18 | )% |  |  | 100 | %
Effective income tax rates |  |  | — | % |  |  | (— | )%
(c) Analysis of Deferred Tax Assets and (Liabilities) (in thousands): SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES
|  | 2022 |  |  | 2021 |
|  | As of December 31, |
|  | 2022 |  |  | 2021 |
Deferred tax assets (liabilities) consist of the following: |  |  |  |  |  |
Employee benefits and deferred compensation |  | $ | 49 |  |  | $ | 1,064 |
Other temporary differences |  |  | 378 |  |  |  | 630 |
Section 174 Expenditures |  |  | 205 |  |  |  | — |
Net operating loss and capital loss carryforwards |  |  | 16,021 |  |  |  | 15,904 |
Deferred tax assets, gross |  |  | 16,653 |  |  |  | 17,598 |
Valuation allowance |  |  | (16,653 | ) |  |  | (17,598 | )
Net deferred tax assets |  | $ | — |  |  | $ | — |
Valuation allowances relate principally to net operating loss carryforwards related to the Company’s consolidated tax losses as well as state tax losses related the Company’s OmniMetrix subsidiary and book-tax differences related asset impairments and stock compensation expense of the Company. During the year ended December 31, 2022, the gross deferred tax asset and the valuation allowance decreased by $945,000. (d) Summary of Tax Loss Carryforwards As of December 31, 2022, the Company had various operating loss carryforwards expiring as follows (in thousands): SUMMARY OF TAX LOSS CARRYFORWARDS
Expiration |  | Federal |  |  | Capital Loss |  |  | State |
2023 |  | $ | — |  |  | $ | 556 |  |  | $ | — |
2025 – 2031* |  |  | 2,580 |  |  |  | — |  |  |  | — |
2032 – 2037 |  |  | 63,180 |  |  |  | — |  |  |  | 14,898 |
Unlimited |  |  | 5,176 |  |  |  | — |  |  |  | 1,896 |
Total |  | $ | 70,936 |  |  | $ | 556 |  |  | $ | 16,794 |
* |  | The utilization of a portion of these net operating loss carryforwards is limited due to limits on utilizing net operating loss carryforwards under Internal Revenue Service regulations for separate return limitation years.
Effective for tax years beginning after December 31, 2021, taxpayers are required to capitalize any expenses incurred that are considered incidental to research and experimentation (R&E) activities under IRC Section 174. While taxpayers historically had the option of deducting these expenses under IRC Section 174, the December 2017 Tax Cuts and Jobs Act mandates capitalization and amortization of R&E expenses for tax years beginning after December 31, 2021. Expenses incurred in connection with R&E activities in the US must be amortized over a 5-year period if incurred. R&E activities are broader in scope than qualified research activities considered under IRC Section 41 (relating to the research tax credit). For the year ended December 31, 2022, the Company performed an analysis based on available guidance and determined that it will continue to be in a loss position even after the required capitalization and amortization of its R&E expenses. The Company will continue to monitor this issue for future developments, but it does not expect R&E capitalization and amortization to require it to pay cash taxes now or in the near future. As a holding company without other business activity in Delaware, the Company is exempt from Delaware state income tax. Thus, the Company’s statutory income tax rate on domestic earnings is the federal rate of 21%.

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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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