XML 33 R17.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Income taxes | 12 Months Ended
--- | ---
Dec. 31, 2023
Income taxes [Abstract] |
Income taxes | 10. Income taxes The components of the income tax expense (benefit) are as follows:
|  | December 31, |
(In thousands) |  | 2023 |  |  | 2022 |
Current: |  |  |  |  |  |
Federal |  | $ | (1 | ) |  | $ | 149 |
State |  |  | 51 |  |  |  | 110 |
Foreign |  |  | 85 |  |  |  | (83 | )
|  |  | 135 |  |  |  | 176 |
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | 825 |  |  |  | (1,924 | )
State |  |  | 132 |  |  |  | (217 | )
Foreign |  |  | 63 |  |  |  | – |
|  |  | 1,020 |  |  |  | (2,141 | )
Income tax expense (benefit) |  | $ | 1,155 |  |  | $ | (1,965 | )
Our effective tax rates were 19.6% and (24.9%) for 2023 and 2022, respectively. The tax benefit recorded for 2022 includes the recognition of stock option cancellations for which no benefit was realized. At December 31, 2023, we have no federal net operating loss carryforwards, $0.1 million of tax-effected state net operating loss carryforwards, $0.7 million in R&D credit carryforwards, and no state tax credit carryforwards. Foreign income before taxes were $322 thousand and $24 thousand in 2023 and 2022, respectively. Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the Consolidated Financial Statements. Our deferred tax assets and liabilities were comprised of the following:
|  | December 31, |
(In thousands) |  | 2023 |  |  | 2022 |
Deferred tax assets: |  |  |  |  |  |
Federal net operating losses |  | $ | – |  |  | $ | 2,297 |
Foreign net operating losses |  |  | 733 |  |  |  | 676 |
State net operating losses |  |  | 84 |  |  |  | 149 |
Accrued severance |  |  | 165 |  |  |  | – |
Capitalized R&D expenses |  |  | 3,127 |  |  |  | 1,708 |
Inventory reserves |  |  | 896 |  |  |  | 648 |
Deferred revenue |  |  | 31 |  |  |  | 41 |
Warranty reserve |  |  | 24 |  |  |  | 17 |
Stock compensation expense |  |  | 790 |  |  |  | 769 |
Other accrued compensation |  |  | 404 |  |  |  | 222 |
R&D credit carryforward |  |  | 695 |  |  |  | 1,238 |
Other Assets |  |  | 360 |  |  |  | – |
Other liabilities and reserves |  |  | – |  |  |  | 463 |
Gross deferred tax assets |  |  | 7,309 |  |  |  | 8,228 |
Valuation allowance |  |  | (719 | ) |  |  | (656 | )
Net deferred tax assets |  |  | 6,590 |  |  |  | 7,572 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 237 |  |  |  | 196 |
Other |  |  | 49 |  |  |  | 49 |
Net deferred tax liabilities |  |  | 286 |  |  |  | 245 |
Total net deferred tax assets |  | $ | 6,304 |  |  | $ | 7,327 |
As of December 31, 2023 and 2022, we had a $719 thousand and $656 thousand, respectively, of valuation allowances on our net operating loss carryforwards. The following table summarizes the activity recorded in the valuation allowance on the deferred tax assets:
|  | Year Ended December 31, |
(In thousands) |  | 2023 |  |  | 2022 |
Balance, beginning of period |  | $ | 656 |  |  | $ | 733 |
Subtractions released to income tax provisions |  |  | – |  |  |  | (77 | )
Additions charged to income tax provision |  |  | 63 |  |  |  | – |
Balance, end of period |  | $ | 719 |  |  | $ | 656 |
Differences between the U.S. statutory federal income tax rate and our effective income tax rate are analyzed below:
|  | Year Ended December 31, |
|  | 2023 |  |  | 2022 |
Federal statutory rate |  |  | 21.0 | % |  |  | 21.0 | %
R&D credit |  |  | (5.9 | ) |  |  | 4.3 |
Foreign-derived intangible income deduction |  |  | (1.7 | ) |  |  | – |
Stock award excess tax benefit |  |  | 0.4 |  |  |  | – |
State income taxes, net of federal income taxes |  |  | 2.5 |  |  |  | 1.1 |
Business meals and entertainment |  |  | 0.3 |  |  |  | – |
Executive compensation limitation |  |  | 0.6 |  |  |  | – |
Uncertain tax positions |  |  | 0.5 |  |  |  | (0.5 | )
Stock option cancellations |  |  | 0.6 |  |  |  | (1.9 | )
Valuation allowance and tax accruals |  |  | 1.0 |  |  |  | 1.0 |
Other |  |  | 0.3 |  |  |  | (0.1 | )
Effective tax rate |  |  | 19.6 | % |  |  | 24.9 | %
We had $197 thousand and $142 thousand of total gross unrecognized tax benefits at December 31, 2023 and 2022, respectively that, if recognized, would favorably affect the effective income tax rate in any future periods. We are not aware of any events that could occur within the next twelve months that could cause a significant change in the total amount of unrecognized tax benefits. A tabular reconciliation of the gross amounts of unrecognized tax benefits at the beginning and end of the year is as follows:
|  | December 31, |
(In thousands) |  | 2023 |  |  | 2022 |
Balance, beginning of period |  | $ | 142 |  |  | $ | 144 |
Tax positions taken during the current period |  |  | 83 |  |  |  | 26 |
Lapse of statute of limitations |  |  | (28 | ) |  |  | (28 | )
Balance, end of period |  | $ | 197 |  |  | $ | 142 |
We expect $40 thousand of the $197 thousand of unrecognized tax benefits will reverse in 2024 upon the expiration of the statute of limitations. We recognize interest and penalties related to uncertain tax positions in the income tax provision. We have accrued interest and penalties related to uncertain tax positions of $25 thousand and $34 thousand as of December 31, 2023 and 2022, respectively. We are subject to U.S. federal income tax as well as income tax of certain state and foreign jurisdictions. We have substantially concluded all U.S. federal income tax, state and local, and foreign tax matters through 2019. However, our federal tax returns for the years 2020 through 2023 remain open to examination. Various state and foreign tax jurisdiction tax years remain open to examination as well, though we believe that any additional assessment would be immaterial to the Consolidated Financial Statements.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration