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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Taxes  
Income Taxes

Note 7 - Income Taxes

The Company is subject to taxation in the United States of America (“U.S.”) and files tax returns in the U.S. federal jurisdiction and several state jurisdictions.

​

Through December 31, 2021, the Company incurred net operating losses for federal tax purposes of approximately $76,403 thousand. The Company experienced an “ownership change” within the meaning of Section 382(g) of the Internal Revenue Code in April 2012, subjecting net operating loss carryforwards (incurred prior to the ownership change) to an annual limitation, which may restrict the ability to use those losses to offset taxable income in periods following the ownership change. The Company analyzed the available information to determine the amount of the annual limitation and based on that information estimated the limitation to be $686 thousand annually. The net operating loss carry forwards generated before 2018 may be used to reduce taxable income through the years 2028 to 2037. Net operating loss carryforwards generated for year 2018 and thereafter do not expire.

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A reconciliation of the expected tax computed at the statutory federal income tax rate to the provision for income taxes is as follows:

​

​

​

​

​

​

​

​

    

2021

    

2020

Expected tax benefit at 21%

​

$

(1,657)

​

$

(1,446)

Change in valuation allowance

​

 

1,558

​

 

1,325

Other

​

 

99

​

 

121

Provision for income taxes

​

$

—

​

$

—

​

Due primarily to the net operating loss carryforwards, the Company has a net deferred tax asset at December 31, 2021 of $16,388 thousand and at December 31, 2020 of $14,830 thousand. In assessing the potential realization of these deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the Company attaining future taxable income during the periods in which those temporary differences become deductible. At December 31, 2021 and 2020, management concluded that there was not sufficient positive evidence of future taxable income to determine that it is more likely than not that the Company’s deferred tax assets will be realized. Consequently, the Company has recorded an appropriate valuation allowance against deferred tax assets at such dates. It is management’s intent to continue maintaining a full valuation allowance on the deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of these allowances.

​

Significant components of the deferred tax assets (liabilities), are approximately as follows:

​

​

​

​

​

​

​

​

​

    

2021

    

2020

Net operating loss carry forwards

​

$

16,044

​

$

14,620

Accrued liabilities

​

 

22

​

 

90

Stock compensation

​

 

263

​

 

120

Depreciation

​

 

26

​

 

(10)

Prepaid expenses

​

 

43

​

 

20

Other

​

 

(10)

​

 

(10)

Deferred tax assets, net

​

 

16,388

​

 

14,830

Valuation allowance

​

 

(16,388)

​

 

(14,830)

Net deferred tax asset

​

$

—

​

$

—

​

Although the Company is not under examination, all tax years for which the Company incurred a net operating loss are subject to examination by United States tax authorities to the extent of the loss carried forward.

The Company’s practice is to recognize interest and penalties related to income tax matters in income tax expense. As of December 31, 2021, and 2020, there were no accrued interest or penalties related to uncertain tax positions.