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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes |
| 9. | Income Taxes
As of December 31, 2022, we had federal net operating loss carryforwards of approximately $183.0 million that expire at various dates through 2037 and approximately $54.3 million which do not expire but are subject to 80% taxable income limitations. As of December 31, 2022, we had federal research and development tax credits of approximately $6.8 million that expire at various dates through 2042. We also had net operating loss carryforwards for California income tax purposes of approximately $115.2 million that expire at various dates through 2042 and state research and development tax credits of approximately $9.2 million which do not expire. Current federal and California tax laws include substantial restrictions on the utilization of net operating losses and tax credits in the event of an ownership change of a corporation under Internal Revenue Code Section 382 and 383. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes and operating loss and credit carryforwards. Significant components of our deferred tax assets are as follows (in thousands):
Schedule of deferred tax assets |  |  |  |  |  |  |  |
|  | As of December 31, |
|  | 2022 |  |  | 2021 |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 57,895 |  |  | $ | 62,097 |
Research credit carryforwards |  |  | 10,521 |  |  |  | 14,738 |
Other, net |  |  | 1,968 |  |  |  | 1,113 |
Total deferred tax assets |  |  | 70,384 |  |  |  | 77,948 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Other, net |  |  | (46 | ) |  |  | (65 | )
Total deferred tax liabilities |  |  | (46 | ) |  |  | (65 | )
Valuation allowance |  |  | (70,338 | ) |  |  | (77,883 | )
Net deferred tax assets |  | $ | - |  |  | $ | - |
ASC 740 requires that the tax benefit of net operating losses, temporary differences and credit carryforwards be recorded as an asset to the extent that management assesses that realization is “more likely than not.” Realization of the future tax benefits is dependent on our ability to generate sufficient taxable income within the carryforward period. Because of our recent history of operating losses, our management believes that recognition of the deferred tax assets arising from the above-mentioned future tax benefits is currently not likely to be realized and, accordingly, has provided a valuation allowance. Realization of deferred tax assets is dependent upon future earnings, if any, the timing and amount of which are uncertain. Accordingly, the net deferred tax assets have been fully offset by a valuation allowance. The valuation allowance decreased by approximately $7.5 million during 2022 and decreased by approximately $2.4 million during 2021. The provision for income taxes consists of state minimum taxes due. The effective tax rate of our provision (benefit) for income taxes differs from the federal statutory rate as follows (in thousands):
Schedule of effective tax rate |  |  |  |  |  |  |  |
|  | For the Years Ended December 31, |
|  | 2022 |  |  | 2021 |
Computed at 21% |  | $ | (2,144 | ) |  | $ | (1,842 | )
State taxes |  |  | (488 | ) |  |  | (67 | )
Change in valuation allowance |  |  | (7,545 | ) |  |  | (1,939 | )
Other |  |  | - |  |  |  | 3 |
Stock based compensation |  |  | 627 |  |  |  | - |
Research and development credits |  |  | 3,489 |  |  |  | (9 | )
Tax attributes expirations |  |  | 6,216 |  |  |  | 3,767 |
Impact of IRC 162m |  |  | (159 | ) |  |  | 87 |
Total |  | $ | (4 | ) |  | $ | - |
We had no unrecognized tax benefits or any amounts accrued for interest and penalties for the three years ended December 31, 2022. Our policy is to recognize interest and penalties related to income taxes as a component of income tax expense. We do not expect the amount of unrecognized tax benefits will materially change in the next twelve months. We file tax returns in the U.S. federal jurisdiction and various state jurisdictions. We are subject to the U.S. federal and state income tax examination by tax authorities for such years 2003 through 2022, due to net operating losses that are being carried forward for tax purposes.

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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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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