XML 33 R19.htm IDEA: XBRL DOCUMENT
v3.24.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Taxes |
Income Taxes | 13. Income Taxes Consolidated income (loss) before taxes for domestic and foreign operations consisted of the following:
|  | Year ended December 31, |
|  | 2023 |  |  | 2022 |
Domestic |  | $ | 1,043 |  |  | $ | 28,754 |
Foreign |  |  | (1,169 | ) |  |  | (1,294 | )
Total |  | $ | (126 | ) |  | $ | 27,460 |
The Company’s provision for income taxes consisted of the following:
|  | Year ended December 31, |
|  | 2023 |  |  | 2022 |
Current: |  |  |  |  |  |  |  |
Federal |  | $ | (131 | ) |  | $ | (6,753 | )
State |  |  | (219 | ) |  |  | (98 | )
Foreign |  |  | (84 | ) |  |  | (53 | )
Total current |  |  | (434 | ) |  |  | (6,904 | )
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | (43 | ) |  |  | 1,132 |
State |  |  | 78 |  |  |  | (976 | )
Foreign |  |  | 293 |  |  |  | 165 |
Total |  |  | 328 |  |  |  | 321 |
Change in valuation allowance |  |  | (328 | ) |  |  | (321 | )
Total deferred |  |  | — |  |  |  | — |
Tax provision |  | $ | (434 | ) |  | $ | (6,904 | )
The income tax provision differs from that computed at the federal statutory corporate income tax rate as follows:
|  | Year ended December 31, |
|  | 2023 |  |  | 2022 |
Tax benefit (provision) at federal statutory rate |  | $ | 26 |  |  | $ | (5,768 | )
State income tax benefit (provision), net of federal benefit |  |  | (10 | ) |  |  | (1,093 | )
Research and development tax credits |  |  | 66 |  |  |  | 457 |
Foreign earnings or losses taxed at different rates |  |  | (72 | ) |  |  | (68 | )
Tax rate change |  |  | (116 | ) |  |  | (60 | )
Other |  |  | — |  |  |  | (51 | )
Change in valuation allowance |  |  | (328 | ) |  |  | (321 | )
Tax benefit (provision) |  | $ | (434 | ) |  | $ | (6,904 | )
The tax effects of significant temporary differences representing net deferred tax assets and liabilities consisted of the following:
|  | 2023 |  |  | 2022 |
Deferred revenue |  | $ | 3 |  |  | $ | 11 |
Basis difference in intangible assets |  |  | 6,080 |  |  |  | 6,604 |
Inventory reserve |  |  | 880 |  |  |  | 2,258 |
Net operating loss carryforwards |  |  | 4,730 |  |  |  | 3,075 |
Research and development tax credits |  |  | 115 |  |  |  | 48 |
Accrued expenses |  |  | 108 |  |  |  | 120 |
Stock-based compensation |  |  | 210 |  |  |  | 215 |
Allowance for sales returns and doubtful accounts |  |  | 81 |  |  |  | 81 |
Difference in property and equipment basis |  |  | (108 | ) |  |  | (83 | )
Convertible debt |  |  | (110 | ) |  |  | (110 | )
Capitalized research expenditure |  |  | 1,507 |  |  |  | 922 |
Other |  |  | 337 |  |  |  | 364 |
Total net deferred income tax asset |  |  | 13,833 |  |  |  | 13,505 |
Less: Valuation allowance |  |  | (13,833 | ) |  |  | (13,505 | )
Net deferred income tax asset (liability) |  | $ | — |  |  | $ | — |
The Company has not provided for foreign withholding taxes on undistributed earnings of its non-U.S. subsidiaries since these earnings are intended to be reinvested indefinitely, in accordance with guidelines contained in ASC Topic 740, Accounting for Income Taxes. It is not practical to estimate the amount of additional taxes that might be payable on such undistributed earnings. The Company routinely evaluates the likelihood of realizing the benefit of its deferred tax assets and may record a valuation allowance if, based on all available evidence, it determines that it is more likely than not some portion of the tax benefit will not be realized. As of December 31, 2023, the Company had an aggregate of approximately $13.8 million in deferred tax assets primarily related to intangible assets, net operating losses, tax credit carryforwards, and inventory basis differences. On a quarterly basis, the Company tests the value of deferred tax assets for impairment at the taxpaying-component level within each tax jurisdiction. Significant judgment and estimates are required in determining whether valuation allowances should be established as well as the amount of such allowances. When making such determination, consideration is given to, among other things, the following:
● | sufficient taxable income within the allowed carryback or carryforward periods;
● | future reversals of existing taxable temporary differences, including any tax planning strategies that could be utilized;
● | nature or character (e.g., ordinary vs. capital) of the deferred tax assets and liabilities; and
● | future taxable income exclusive of reversing temporary differences and carryforwards.
Based on the foregoing criteria, the Company determined that it does not meet the “more likely than not” threshold that net operating losses, tax credits and other deferred tax assets will be realized. Accordingly, the Company recorded a full valuation allowance at December 31, 2023. As of December 31, 2023 the Company has federal net operating loss (“NOL”) carryforwards of approximately $5.8 million (pre-tax), state NOL carryforwards of approximately 6.3 million (pre-tax) and Spain NOL carryforwards of approximately $12.7 million (pre-tax). The federal NOL carryforward expires in 2029. T he Spain NOL carryforward does not expire. The state NOL carryforwards expire over various periods. Effective July 1, 2007, the Company adopted the accounting standards related to uncertain tax positions. This standard requires that tax positions be assessed using a two-step process. A tax position is recognized if it meets a “more likely than not” threshold, and is measured at the largest amount of benefit that is greater than 50 percent likely of being realized. Uncertain tax positions must be reviewed at each balance sheet date. Liabilities recorded as a result of this analysis must generally be recorded separately from any current or deferred income tax accounts. The total amount of unrecognized tax benefits at December 31, 2023 and 2022, that would favorably impact our effective tax rate if recognized was $1,034 and $976, respectively. As of December 31, 2023 and 2022, we accrued $111 and $44, respectively, in interest and penalties related to unrecognized tax benefits. We account for interest expense and penalties for unrecognized tax benefits as part of our income tax provision. Although we believe our estimates are reasonable, we can make no assurance that the final tax outcome of these matters will not be different from that which we have reflected in our historical income tax provisions and accruals. Such difference could have a material impact on our income tax provision and operating results in the period in which we make such determination. A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions is as follows:
|  | Year ended December 31, |
|  | 2023 |  |  | 2022 |
Balance - beginning of year |  | $ | 962 |  |  | $ | 895 |
Additions based on tax positions related to the current year |  |  | 18 |  |  |  | 75 |
Reductions for tax positions of prior years |  |  | (5 | ) |  |  | — |
Lapse in statutes of limitations |  |  | (7 | ) |  |  | (8 | )
Uncertain tax positions, ending balance |  | $ | 968 |  |  | $ | 962 |
The Company’s U.S. federal income tax returns for 2018 through 2023 are subject to examination. The Company's U.S. 2018 federal income tax return is currently under examination. The Company also files in various state and foreign jurisdictions. With few exceptions, the Company is no longer subject to federal, state, or non-U.S. income tax examinations by tax authorities for years prior to 2017.

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