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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Schedule of Income Tax Provision (Benefit) | The income tax provision (benefit) is as follows (in thousands):
|  | For the Years Ended December 31, |
|  | 2022 |  |  | 2021 |
Current: |  |  |  |  |  |
U.S. federal |  | $ | (13 | ) |  | $ | — |
State and local |  |  | 24 |  |  |  | 12 |
Foreign |  |  | 43 |  |  |  | 218 |
Total current provision |  |  | 54 |  |  |  | 230 |
Deferred: |  |  |  |  |  |
U.S. federal |  |  | 10 |  |  |  | (2,203 | )
State and local |  |  | 20 |  |  |  | (76 | )
Total deferred provision (benefit) |  |  | 30 |  |  |  | (2,279 | )
Total tax provision |  | $ | 84 |  |  | $ | (2,049 | )
Schedule of Reconciliation of Income Tax Provision to Statutory Federal Income Tax Rate | Reconciliations of the total income tax provision tax rate to the statutory federal income tax rate of 21% for the years ended December 31, 2022 and 2021, respectively, are as follows (in thousands):
|  | For the Years Ended December 31, |
|  | 2022 |  |  | 2021 |
Income taxes at statutory rates |  | $ | (1,802 | ) |  | $ | (2,549 | )
State income tax, net of federal benefit |  |  | 44 |  |  |  | (64 | )
Permanent items |  |  | 52 |  |  |  | 86 |
Equity based compensation |  |  | 298 |  |  |  | (364 | )
Change in fair value of contingent consideration |  |  | — |  |  |  | 428 |
Federal research credits |  |  | (374 | ) |  |  | (313 | )
Federal return to provision |  |  | (1 | ) |  |  | 73 |
Foreign taxes |  |  | 43 |  |  |  | 218 |
Other |  |  | 77 |  |  |  | 74 |
Change in federal valuation allowance |  |  | 1,747 |  |  |  | 362 |
|  | $ | 84 |  |  | $ | (2,049 | )
Deferred Income 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 as follows (in thousands):
|  | December 31, |
|  | 2022 |  |  | 2021 |
Deferred tax assets: |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 5,374 |  |  | $ | 7,247 |
Research and AMT credits |  |  | 3,742 |  |  |  | 3,365 |
Stock based compensation |  |  | 1,891 |  |  |  | 1,360 |
Lease liability |  |  | 611 |  |  |  | 746 |
Section 174 R&D Capitalization |  |  | 2,319 |  |  |  | — |
Accrued and other |  |  | 1,100 |  |  |  | 506 |
|  |  | 15,037 |  |  |  | 13,224 |
Less valuation allowance |  |  | (11,884 | ) |  |  | (9,452 | )
Deferred tax assets, net of allowance |  |  | 3,153 |  |  |  | 3,772 |
Deferred tax liabilities: |  |  |  |  |  |
Fixed assets |  |  | (520 | ) |  |  | (449 | )
Goodwill |  |  | (418 | ) |  |  | (349 | )
Right-of-use asset |  |  | (556 | ) |  |  | (676 | )
Intangible asset |  |  | (1,798 | ) |  |  | (2,407 | )
Deferred tax liabilities |  |  | (3,292 | ) |  |  | (3,881 | )
Total deferred tax liabilities |  | $ | (139 | ) |  | $ | (109 | )
We have established a valuation allowance against our net deferred tax assets due to the uncertainty surrounding the
Summary of Reconciliation of Unrecognized Tax Benefit Activity | The following table summarizes the reconciliation of the unrecognized tax benefits activity during the years ended December 31 (in thousands):
|  | 2022 |  |  | 2021 |
Beginning unrecognized tax benefits |  | $ | 1,217 |  |  | $ | 879 |
Gross increases - tax positions in prior period |  |  | (50 | ) |  |  | 178 |
Gross decreases – tax positions in prior period |  |  | (9 | ) |  |  | — |
Gross increases - current year tax positions |  |  | 147 |  |  |  | 123 |
Purchase accounting |  |  | — |  |  |  | 37 |
Ending unrecognized tax benefits |  | $ | 1,305 |  |  | $ | 1,217 |
The unrecognized tax benefit amounts are reflected in the determination of the Company’s deferred tax assets. If recognized,

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