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Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Taxes  
Income Taxes

Note 7 - Income Taxes

For the years ended December 31, 2022 and 2021, the Company's loss before provision for income taxes were as follows:

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​

​

​

​

​

​

​

​

For the Year Ended

​

​

December 31, 

(in thousands)

2022

​

2021

Domestic

$

(5,649)

​

$

(7,686)

Foreign

​

(109)

​

​

(200)

Loss before provision for income taxes

$

(5,758)

​

$

(7,886)

​

There was no provision for income taxes for the years ended December 31, 2022 and 2021 due to the Company's taxable losses.

Income tax benefit attributable to loss from continuing operations differed from the amounts computed by applying the statutory U.S federal income tax rate of 21% to pretax loss from continuing operations as a result of the following:

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​

​

​

​

​

​

​

​

For the Year Ended

​

​

December 31, 

(in thousands)

​

2022

​

​

2021

Tax Benefit at Federal statutory rate

$

(1,209)

​

$

(1,657)

Tax Benefit at State rate

​

(197)

​

​

—

Meals and Entertainment

​

4

​

​

—

Prior Year Deferred Tax True Ups

​

(2,805)

​

​

—

Other

​

(82)

​

​

99

Change in Valuation Allowance

​

4,289

​

​

1,558

​

$

—

​

$

—

​

The significant components of the Company's deferred tax assets and liabilities as of December 31, 2022 and 2021 were as follows:

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​

​

​

​

​

​

​

​

For the Year Ended

​

​

December 31, 

(in thousands)

2022

​

2021

Deferred Tax Assets:

​

​

​

​

​

Accrued Expenses

$

74

​

$

22

Stock-Based Compensation

​

337

​

​

263

Depreciation

​

102

​

​

26

Prepaid Expenses

​

(31)

​

​

43

Accrued Vacation

​

(3)

​

​

—

ASC 842 Lease Standard

​

(16)

​

​

—

Net Operating Loss carryforwards

​

20,263

​

​

16,044

Gross Deferred Tax Assets

​

20,726

​

​

16,398

Valuation Allowance

​

(20,677)

​

​

(16,388)

Total deferred tax assets, net of valuation allowance

​

49

​

​

10

Deferred Tax Liabilities

​

​

​

​

​

Other

​

(49)

​

​

(10)

Net Deferred Tax Assets

$

—

​

$

—

​

For the year ended December 31, 2022, based on all available objective evidence, including the existence of cumulative losses, the Company determined that it was not more likely than not that the net deferred tax assets were fully realizable as of December 31, 2022. Accordingly, the Company established a full valuation allowance against its deferred tax assets.

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As of December 31, 2022, the Company had $82.1 million of federal and $45.9 million of state net operating loss carryforwards available to reduce future taxable income, of which federal net operating loss carryforwards of $35.3 million have an indefinite life. The remaining federal net operating losses begin to expire in 2028, while state net operating losses begin to expire in 2025.

​

The Company experienced an “ownership change” within the meaning of Section 382 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 these losses to offset taxable income in periods following the ownership change. The Company determined the amount of the annual limitation to be $686 thousand annually. The net operating loss carryforwards generated before 2018 may be used to reduce taxable income through the years 2028 to 2037. Federal net operating loss carryforwards generated for year 2018 and thereafter do not expire.

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The Company files income tax returns in the U.S. federal, state and foreign jurisdictions. All tax years generally remain subject to examination by the IRS and various state taxing authorities, although the Company is not currently under examination in any jurisdiction.

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The Company’s policy is to recognize interest and penalties related to income tax matters in income tax expense. As of December 31, 2022 and 2021, there was no accrued interest or penalties related to uncertain tax positions.