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Income Taxes | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | 11. Income Taxes The Company accounts for income taxes in accordance with ASC Topic 740. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized. In determining the need for a valuation allowance, management reviews both positive and negative evidence pursuant to the requirements of ASC Topic 740, including current and historical results of operations, future income projections, and the overall prospects of the Company’s business. The income tax (benefit) provision for federal and state and local income taxes in the consolidated statements of operations consists of the following:
|  | Years Ended December 31,
($ in thousands) |  | 2020 |  | 2019
Current: |  |  |  |  |  |
Federal |  | $ | (202) |  | $ | —
State and local |  |  | 66 |  |  | 63
Total current |  |  | (136) |  |  | 63
Deferred: |  |  |  |  |  |
Federal |  |  | (3,538) |  |  | (354)
State and local |  |  | (844) |  |  | (351)
Total deferred |  |  | (4,382) |  |  | (705)
Total benefit |  | $ | (4,518) |  | $ | (642)
The reconciliation of income tax (benefit) provision computed at the federal and state and local statutory rates to the Company’s loss before taxes is as follows:
|  | Years Ended December 31, |
|  | 2020 |  | 2019 |
U.S. statutory federal rate |  | 21.00 | % | 21.00 | %
State and local rate, net of federal tax |  | 4.54 |  | 7.40 |
Stock compensation |  | (1.94) |  | (7.01) |
Excess compensation deduction |  | (0.51) |  | (5.08) |
Foreign tax credits |  | 0.11 |  | 0.45 |
Life insurance |  | (0.04) |  | (0.81) |
Net operating loss carryback |  | 0.56 |  | — |
Paycheck Protection Program addback |  | 2.18 |  | — |
Other permanent differences |  | (0.01) |  | (0.16) |
Income tax benefit |  | 25.89 | % | 15.79 | %
The significant components of net deferred tax liabilities of the Company consist of the following:
|  | December 31,
($ in thousands) |  | 2020 |  | 2019
Deferred tax assets |  |  |  |  |  |
Stock-based compensation |  | $ | 2,440 |  | $ | 2,774
Federal, state and local net operating loss carryforwards |  |  | 2,907 |  |  | 1,207
Accrued compensation and other accrued expenses |  |  | 664 |  |  | 846
Allowance for doubtful accounts |  |  | 329 |  |  | 43
Basis difference arising from discounted note payable |  |  | 11 |  |  | 316
Foreign tax credit |  |  | 219 |  |  | 148
Charitable contribution carryover |  |  | 63 |  |  | 60
Property and equipment |  |  | 321 |  |  | 180
Total deferred tax assets |  |  | 6,954 |  |  | 5,574
Deferred tax liabilities |  |  |  |  |  |
Basis difference arising from intangible assets of acquisition |  |  | (10,006) |  |  | (13,008)
Total deferred tax liabilities |  |  | (10,006) |  |  | (13,008)
Net deferred tax liabilities |  | $ | (3,052) |  | $ | (7,434)
As of December 31, 2020 and 2019, the Company had approximately $10.1 million and $4.0 million, respectively, of federal net operating loss carryforwards ("NOLs") available to offset future taxable income. The NOL as of December 31, 2017 of $0.3 million has an expiration period through 2037. The NOL generated during tax years beginning after December 31, 2017 of $9.8 million has an indefinite life and does not expire. On March 27, 2020, the CARES Act was enacted and signed into law. The CARES Act includes certain provisions impacting businesses’ income taxes related to 2018, 2019, and 2020. Some of the significant tax law changes are to increase the limitation on deductible business interest expense for 2019 and 2020, allow for the five-year carryback of net operating losses for 2018-2020, suspend the 80% limitation of taxable income for net operating loss carryforwards for 2018-2020, provide for the acceleration of depreciation expense from 2018 and forward on qualified improvement property, and accelerate the ability to claim refunds of AMT credit carryforwards. The Company is required to recognize the effect of tax law changes on its financial statements in the period in which the law was enacted. At this time, the Company may avail itself of the ability to carry back net operating losses generated in 2018 and 2019 tax years for five years, which would result in an estimated income statement benefit of $0.1 million and tax refund receivable of $0.2 million. As of December 31, 2020 and 2019, management does not believe the Company has any material uncertain tax positions that would require it to measure and reflect the potential lack of sustainability of a position on audit in its consolidated financial statements. The Company will continue to evaluate its uncertain tax positions in future periods to determine if measurement and recognition in its consolidated financial statements is necessary. The Company does not believe there will be any material changes in its unrecognized tax positions over the next year.

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- 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=84230637&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=116825942&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=84230637&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=116825942&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=84230637&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 + Details
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