XML 32 R19.htm IDEA: XBRL DOCUMENT v3.21.1
Income Taxes
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
We file income tax returns in the U.S. federal jurisdiction, as well as in various state and local jurisdictions. With few exceptions, we are no longer subject to U.S. federal, state, and local, or non-U.S. income tax examinations by tax authorities for years before 2017. Our practice is to recognize interest and penalties related to income tax matters in income tax expense when and if they become applicable. At December 31, 2020 and 2019, respectively, there were no accrued interest and penalties related to uncertain tax positions.
 
The following table shows the components of the provision for income taxes (in thousands):
 For the year ended December 31,
 20202019
Current:  
State$(5)$10 
Deferred:
U.S. Federal— — 
(Benefit from) provision for income taxes$(5)$10 
The principal items accounting for the difference between income taxes computed at the U.S. statutory rate and the (benefit from) provision for income taxes reflected in our Consolidated Statements of Operations are as follows:
 For the year ended December 31,
 20202019
U.S. statutory rate21.0 %21.0 %
State taxes (net of federal tax benefit)5.6 2.0 
Valuation allowance(26.0)(20.7)
Other(0.5)(2.4)
 0.1 %(0.1)%
 
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets are as follows (in thousands): 
 At December 31,
 20202019
Accrued expenses and other reserves$1,787 $1,505 
Right-of-use-asset(225)(378)
Lease liabilities271 461 
Tax credits, deferred R&D, and other20 44 
Net operating loss14,510 12,758 
Valuation allowance(16,363)(14,390)
Net deferred tax assets$— $— 
 
In 2020, our effective tax rate was lower than the statutory rate due to an increase in the valuation allowance as a result of the $7.1 million additional federal net operating loss we recognized for the year. In 2019, our effective tax rate was lower than the statutory rate due to an increase in the valuation allowance of the $8.3 million additional federal net operating loss we recognized for the year.

At December 31, 2020, we had net operating loss carry-forwards of approximately $115.9 million for federal income tax purposes ($72.3 million for state and local income tax purposes). However, due to changes in our capital structure, approximately $61.5 million of the $115.9 million is available after the application of IRC Section 382 limitations. As a result of the Tax Act, net operating loss carry-forwards generated in tax years beginning after December 31, 2017 can only offset 80% of taxable income. These net operating loss carry-forwards can no longer be carried back, but they can be carried forward indefinitely. The $7.1 million and $8.3 million in federal net operating losses generated in 2020 and 2019 will be subject to the new limitations under the Tax Act. If not utilized, the carry-forwards generated prior to December 31, 2017 of $37.3 million will begin to expire in 2021 for federal purposes and have begun to expire for state and local purposes.

Since we believe it is more likely than not that the benefit from net operating loss carry-forwards will not be realized, we have provided a full valuation allowance against our deferred tax assets at December 31, 2020 and 2019, respectively. We had no net deferred tax liabilities at December 31, 2020 or 2019, respectively. In 2020, we recognized various states tax benefits as a result of the adjustment from the 2019 provision to the actual tax on the 2019 returns that were filed in 2019. In 2019, we recognized various states tax expense as a result of the adjustment from the 2018 provision to the actual tax on the 2018 returns that were filed in 2019.