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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Taxes [Abstract]  
Income Taxes

Note 14 Income Taxes

 

The components of deferred income tax assets are as follows as of December 31 (“000’s”):

 

   2024   2023 
Stock Options  $79   $79 
Basis Difference in TotalStone   620    463 
Basis Difference in Diamond Products   217    247 
Interest Expense Limitation   730    425 
Federal Credits   3,110    3,866 
Federal NOL Carryforward   29,604    29,497 
Other   460    460 
    34,820    35,037 
Less: valuation allowance   (27,642)   (27,440)
Net, deferred income tax assets  $7,178   $7,597 

 

ASC 740 requires that a valuation allowance be established when it is more-likely-than-not that all or a portion of a deferred tax asset will not be realized. Changes in valuation allowances from period-to-period are included in the tax provision in the period of change. In determining whether a valuation allowance is required, the Company takes into account all evidence with regard to the utilization of a deferred tax asset including past earnings history, expected future earnings, the character and jurisdiction of such earnings, unsettled circumstances that, if unfavorably resolved, would adversely affect utilization of a deferred tax asset, carryback and carryforward periods, and tax strategies that could potentially enhance the likelihood of realization of a deferred tax asset. Management has evaluated the available evidence about future taxable income and other possible sources of realization of deferred tax assets and has established a valuation allowance of $27.6 million and $27.4 million at December 31, 2024 and 2023, respectively. The valuation allowance reduces deferred tax assets to an amount that management believes will more likely than not be realized.

 

The Company has accumulated approximately $141.0 million in federal and $17.0 million in state net operating loss carryforwards (“NOLs”) and approximately $3.9 million of research and development tax credit carryforwards. The federal NOLs generated before 2018 have 20-year carryforward periods with NOLs generated in 2018 and after having no expiration period. Federal NOLs generated in 2018 and after total $3.5 million. The availability of these NOL’s to offset future taxable income could be limited in the event of a change in ownership, as defined in Section 382 of the Internal Revenue Code.

 

The components of the income tax provision (benefit) are as follows in (“000’s”):

 

   2024   2023 
Federal:        
Current  $
—
   $
—
 
Deferred   419    32 
    419    32 
State and local:          
Current   23    202 
Deferred   
—
    
—
 
    23    202 
Income tax provision  $442   $234 

A reconciliation of the difference between the provision for income taxes and income taxes at the statutory U.S. federal income tax rate is as follows in (“000’s”):

 

   2024   2023 
Income tax provision (benefit) at statutory rate  $(444)  $(753)
State taxes, net of federal benefit  $23   $162 
Net change in NOL carryforward, federal credits and valuation allowance   863    817 
Other   
—
    8 
Income tax provision recognized   442    234