XML 41 R20.htm IDEA: XBRL DOCUMENT
v3.22.1

Note 13 - Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2021
Notes to Financial Statements |
Income Tax Disclosure [Text Block] |
(13) | Income Taxes
The Company’s provision for income taxes for the years ended December 31, 2021 and 2020 was $0 for both years. The provision for income taxes differs from the amount which would result by applying the federal statutory income tax rate to pre-tax loss for the years ended December 31, 2021 and 2020. The reconciliation of the provision computed at the federal statutory rate to the Company’s provision (benefit) for income taxes was as follows (in thousands):
|  | Years ended December 31, |
|  | 2021 |  |  | 2020 |
Tax at federal statutory rate |  | $ | (2,651 | ) |  | $ | (3,151 | )
State, net of federal benefit |  |  | — |  |  |  | (449 | )
Research and development credit |  |  | (279 | ) |  |  | (276 | )
Share-based compensation |  |  | 264 |  |  |  | 649 |
PPP Note forgiveness |  |  | — |  |  |  | (107 | )
Other |  |  | 2 |  |  |  | 2 |
Change in valuation allowance |  |  | 2,664 |  |  |  | 3,332 |
Total provision for income taxes |  | $ | — |  |  | $ | — |
Deferred income taxes reflect the net tax effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes as well as net operating loss and tax credit carryforwards, net of any adjustment for unrecognized tax benefits. The components of the net deferred income tax assets as of December 31, 2021 and 2020 were as follows (in thousands):
|  | Years ended December 31, |
|  | 2021 |  |  | 2020 |
Accrued compensation |  | $ | 191 |  |  | $ | 225 |
Inventory adjustments |  |  | 15 |  |  |  | 335 |
Depreciation and amortization |  |  | 24 |  |  |  | 90 |
Share-based compensation |  |  | 595 |  |  |  | 686 |
Net operating loss and tax credit carryforwards |  |  | 30,277 |  |  |  | 26,931 |
Other |  |  | 2 |  |  |  | 173 |
Gross Deferred Tax Asset |  |  | 31,104 |  |  |  | 28,440 |
Valuation Allowance |  |  | (31,104 | ) |  |  | (28,440 | )
Net deferred tax asset |  | $ | — |  |  | $ | — |
The Company had approximately $106.1 million and $62.4 million of federal and state net operating loss (NOL) carryforwards, respectively, as of December 31, 2021. For tax reporting purposes, operating loss carryforwards are available to offset future taxable income; such carryforwards expire in varying amounts beginning in 2022 and 2028 for federal and state purposes, respectively, with 2021, 2020, 2019, and 2018 federal NOLs having no expiration date. Under current federal and California law, the amounts of and benefits from net operating losses carried forward may be impaired or limited in certain circumstances. Events which may cause limitations in the amount of net operating losses that the Company may utilize in any one year include, but are not limited to, a cumulative ownership change of more than 50% over a three-year period. Generally, utilization of the net operating loss carryforwards and credits may be subject to a substantial annual limitation due to the ownership change limitations provided by section 382, which discusses limitations on NOL carryforwards and certain built-in losses following ownership changes, and section 383, which discusses, special limitations on certain excess credits, etc., of the Internal Revenue Code (IRC) of 1986, as amended and similar state provisions. Accordingly, the Company’s ability to utilize net operating loss carryforwards and tax credit carryforwards may be limited, potentially significantly, as the result of such an “ownership change.” The Company has not yet performed a comprehensive study to determine if it has undergone any ownership changes. If the Company is able to potentially utilize its net operating loss carryforwards and tax credit carryforwards, it will perform a comprehensive section 382 and 383 study to determine what, if any, limitation on its ability to utilize its NOLs exists. As of December 31, 2021, the Company had federal and state research and development credits of approximately $3.1 million and $2.3 million available to offset future federal and state income taxes, respectively. The federal tax credit carryforward expires beginning in 2028. The state credit carryforwards have no expiration. The Company does not believe that these assets are realizable on a more likely than not basis; therefore, the net deferred tax assets have been fully offset by a valuation allowance. The Company did not have deferred tax liabilities as of December 31, 2021 or 2020. The net increase in the total valuation allowance for the year ended December 31, 2021 was $2.7 million, primarily from the net operating losses generated. The net increase in the total valuation allowance for the year ended December 31, 2020 was $3.3 million, primarily from the net operating losses generated. No liability related to uncertain tax positions is reported in the financial statements. The aggregate changes in the balance of gross unrecognized tax benefits were as follows (in thousands):
|  | Years ended December 31, |
|  | 2021 |  |  | 2020 |
Balance, beginning of year |  | $ | 1,235 |  |  | $ | 1,046 |
Additions based on tax positions related to the current year |  |  | 158 |  |  |  | 189 |
Reductions for tax positions related to prior years |  |  | (25 | ) |  |  | — |
Balance, end of year |  | $ | 1,368 |  |  | $ | 1,235 |
Recognition of approximately $991,000 and $895,000 of unrecognized tax benefits would impact the effective rate at December 31, 2021 and 2020 respectively, if recognized. Increases in 2021 relate to increased research and development activity.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
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 -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration