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INCOME TAXES | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
INCOME TAXES | NOTE 10—INCOME TAXES (a) Composition of income (loss) before income taxes is as follows (in thousands): COMPOSITION OF LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|  | Year ended December 31, |
|  | 2023 |  |  | 2022 |
Domestic |  | $ | 138 |  |  | $ | (631 | )
Income tax expense consists of the following (in thousands): COMPONENTS OF INCOME TAX EXPENSE
|  | Year ended December 31, |
|  | 2023 |  |  | 2022 |
Current: |  |  |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |
State and local |  |  | 9 |  |  |  | — |
Current income tax expense |  |  | — |  |  |  | — |
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | — |  |  |  | — |
State and local |  |  | — |  |  |  | — |
Deferred income tax expense |  |  | — |  |  |  | — |
Total income tax expense |  | $ | 9 |  |  | $ | — |
(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
|  | 2023 |  |  | 2022 |
|  | Year ended December 31, |
|  | 2023 |  |  | 2022 |
Statutory Federal rates |  |  | 21 | % |  |  | 21 | %
Increase (decrease) in income tax rate resulting from: |  |  |  |  |  |  |  |
Nondeductible/nontaxable items |  |  | 2 | % |  |  | (3) | %
State taxes |  |  | 4 | % |  |  | — |
Rate change |  |  | 69 | % |  |  | — |
Prior year rate change adjustment |  |  | 173 | % |  |  | — |
Deferred true-ups |  |  | 147 | % |  |  | — |
Valuation allowance |  |  | (409) | % |  |  | (18) | %
Effective income tax rates |  |  | 7 | % |  |  | (—) | %
(c) Analysis of Deferred Tax Assets and (Liabilities) (in thousands): SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES
|  | 2023 |  |  | 2022 |
|  | As of December 31, |
|  | 2023 |  |  | 2022 |
Deferred tax assets (liabilities) consist of the following: |  |  |  |  |  |  |  |
Employee benefits and deferred compensation |  | $ | 61 |  |  | $ | 49 |
Deferred revenue |  |  | 202 |  |  |  | — |
Right-of-use assets |  |  | (41 | ) |  |  | — |
Lease liability |  |  | 47 |  |  |  | — |
Fixed assets |  |  | (88 | ) |  |  | (154 | )
Intangible assets |  |  | 311 |  |  |  | 529 |
Other temporary differences |  |  | 46 |  |  |  | 3 |
Section 174 expenditures |  |  | 290 |  |  |  | 205 |
Net operating loss and capital loss carryforwards |  |  | 15,258 |  |  |  | 16,021 |
Deferred tax assets, gross |  |  | 16,086 |  |  |  | 16,653 |
Valuation allowance |  |  | (16,086 | ) |  |  | (16,653 | )
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 to asset impairments, deferred revenue, capitalized Section 174 expenditures, and stock-based compensation expense of the Company. The Company continually evaluates the likelihood of the realization of deferred tax assets and adjusts the carrying amount of the deferred tax assets by the valuation allowance to the extent the future realization of the deferred tax assets is more likely than not. The Company considers many factors when assessing the likelihood of future realization of its deferred tax assets, including its recent cumulative earnings experience by taxing jurisdiction, expectation of future taxable income or loss, the carryforward periods available to the Company for tax reporting purposes, and other relevant factors. As of December 31, 2023, based on the Company’s history of earnings and its assessment of future earnings, management believes that it is more likely than not that future taxable income will not be sufficient to realize the deferred tax assets. During the year ended December 31, 2023, the gross deferred tax asset and the valuation allowance decreased by $567,000. (d) Summary of Tax Loss Carryforwards As of December 31, 2023, 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* |  |  | 2,579 |  |  |  |  |  |  |  |  |
2032 – 2037 |  |  | 61,351 |  |  |  | — |  |  |  | 14,818 |
Unlimited |  |  | 4,958 |  |  |  | — |  |  |  | 1,877 |
Total |  | $ | 68,888 |  |  | $ | 556 |  |  | $ | 16,695 |
* |  | 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, 2023, the Company performed an analysis based on available guidance and capitalized the required R&E costs. The Company will continue to monitor this issue for future developments. The Company files tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examinations by federal, foreign, and state and local jurisdictions, where applicable. There are currently no pending tax examinations. The Company’s tax years are still open under statute from 2019 to the present in the U.S. and from 2017 to 2018 in the Company’s foreign operations. To the extent the Company has tax attribute carryforwards, the tax years in which the attribute was generated may still be adjusted upon examination by the Internal Revenue Service and state and local tax authorities to the extent utilized in a future period. The Company is also subject to certain non-income taxes such as value added taxes, sales taxes, and property taxes. The Company has taken certain positions that management feels, although not free from doubt, should not result in a successful challenge by certain tax authorities.

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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 -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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