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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2023
Income Taxes [Abstract] |
Loss before Income Taxes | Loss before income taxes consist of the following (in thousands):
|  | Years ended December 31, |
|  | 2023 |  |  | 2022 |
(in thousands) |  |  |  |  |  |
Domestic |  | $ | (21,654 | ) |  | $ | (24,513 | )
Foreign |  |  | (17 | ) |  |  | (21 | )
Total loss before income taxes |  | $ | (21,671 | ) |  | $ | (24,534 | )
Income Tax Provision | For each of the years ended December 31, 2023 and 2022, current tax provisions and current deferred tax provisions were recorded as follows (in thousands):
|  | Years ended December 31, |
|  | 2023 |  |  | 2022 |
Current Tax Provision |  |  |  |  |  |
Federal |  | $ | - |  |  | $ | - |
State |  |  | 1 |  |  |  | 4 |
Foreign |  |  | - |  |  |  | - |
|  |  | 1 |  |  |  | 4 |
Deferred Tax Provision |  |  |  |  |  |  |  |
Federal |  |  | (2,155 | ) |  |  | (6,851 | )
State |  |  | 8 |  |  |  | (1,602 | )
Foreign |  |  | (2 | ) |  |  | (187 | )
|  |  | (2,149 | ) |  |  | (8,640 | )
Change in valuation allowance |  |  | 2,145 |  |  |  | 8,681 |
Total tax (benefit) provision for income taxes |  | $ | (3 | ) |  | $ | 45 |
Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities consist of the effects of temporary differences as shown in the table below (in thousands). Deferred tax assets have been fully reserved by a valuation allowance since it is more likely than not that such tax benefits will not be realized.
|  | As of December 31, |
|  | 2023 |  |  | 2022 |
Deferred Tax Assets: |  |  |  |  |  |
Net operating losses |  | $ | 12,740 |  |  | $ | 9,382 |
Foreign net operating losses |  |  | 784 |  |  |  | 782 |
Stock compensation |  |  | 2,141 |  |  |  | 2,173 |
In-process research and development |  |  | 1,009 |  |  |  | 1,233 |
Capitalized rearch and development expenses |  |  | 3,105 |  |  |  | 1,502 |
R&D credit carryforwards |  |  | 437 |  |  |  | 517 |
Compensation accrual |  |  | 3 |  |  |  | 81 |
ROU Liabilities |  |  | 8,932 |  |  |  | 334 |
Other |  |  | 132 |  |  |  | 549 |
Total gross deferred tax assets |  |  | 29,283 |  |  |  | 16,553 |
Valuation allowance |  |  | (18,302 | ) |  |  | (16,157 | )
Net deferred tax assets |  |  | 10,981 |  |  |  | 396 |
Deferred Tax Liabilities: |  |  |  |  |  |  |  |
Fixed assets |  |  | (6 | ) |  |  | (10 | )
ROU Assets |  |  | (8,349 | ) |  |  | (291 | )
Convertible debt |  |  | (2,507 | ) |  |  | - |
Intangibles - goodwill |  |  | (179 | ) |  |  | (160 | )
Total deferred tax liabilities |  |  | (11,041 | ) |  |  | (461 | )
Net deferred taxes |  | $ | (60 | ) |  | $ | (65 | )
Reconciliation of Computed Expected Income Taxes to Effective Income Taxes | The reconciliation of computed expected income taxes to effective income taxes by applying the federal statutory rate of 21% is as follows:
|  | As of December 31, |
|  | 2023 |  |  | 2022 |
Tax at federal income tax rate |  |  | 21.00 | % |  |  | 21.00 | %
State income tax, net of federal tax |  |  | 4.92 | % |  |  | 6.52 | %
Foreign tax differential |  |  | (0.01 | %) |  |  | (0.01 | %)
Non-deductible expenses/excludable items |  |  | (0.74 | %) |  |  | 6.09 | %
Change in valuation allowance |  |  | (9.90 | %) |  |  | (35.38 | %)
Convertible debt |  |  | (11.92 | %) |  |  | 0.00 | %
Credits |  |  | 0.00 | % |  |  | 0.98 | %
Uncertain tax positions |  |  | 0.00 | % |  |  | (0.49 | %)
Other |  |  | (3.34 | %) |  |  | 1.11 | %
Benefit (provision) for income taxes |  |  | 0.01 | % |  |  | (0.18 | %)
Uncertain Tax Positions | The following table summarizes amounts the Company recorded for uncertain tax positions as of December 31, 2023 and 2022 (in thousands):
|  | As of December 31, |
|  | 2023 |  |  | 2022 |
Beginning balance of uncertain tax positions |  | $ | 121 |  |  | $ | - |
Additions based on current year’s tax positions |  |  | - |  |  |  | 45 |
Net changes based on prior year’s tax positions |  |  | 272 |  |  |  | 76 |
Ending balance of uncertain tax positions |  | $ | 393 |  |  | $ | 121 |

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