Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.23.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Expense Benefit

The following table presents the income (loss) before income taxes for domestic and foreign operations, and the components of the provision (benefit) for income taxes for the years ended December 31:

 

    2022     2021  
Domestic loss   $ (13,885 )   $ (39,065 )
Foreign subsidiaries income     (18 )     605  
Income (loss) before income taxes   $ (13,903 )   $ (38,460 )

 

    2022     2021  
Current income tax expense:                
Federal   $ —     $ —  
State     21       17  
Foreign     306       169  
Total Current     327       186  
                 
Deferred income tax expense:                
Federal     —       —  
State     —       —  
Foreign     (143 )     (19 )
Total Deferred     (143 )     (19 )
Total provision (benefit) for income taxes   $ 184     $ 167  
Schedule of Effective Income Tax

The Company’s effective tax rate differs from the federal statutory rate due to the following for the years ended December 31:

 

    2022     2021  
Statutory federal income tax rate     21.00 %     21.00 %
State income taxes, net of federal tax benefits     1.00 %     1.65 %
Stock compensation     -1.43 %     -0.54 %
ASC 842 Adoption     1.48 %     0.00 %
Foreign rate differential     -1.20 %     -0.06 %
Tax credits     0.00 %     0.26 %
GILTI Inclusion     -0.17 %     -0.41 %
Non-deductible expenses     -0.00 %     -0.01 %
Valuation allowance     -22.00 %     -22.34 %
Effective tax rate     -1.32 %     -0.44 %
Schedule of Components of the Company’s Deferred Tax Assets and Liabilities

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. The following table presents the significant components of the Company’s deferred tax assets and liabilities at December 31:

 

    2022     2021  
Gross deferred tax assets:                
Net operating loss carryforward   $ 18,937     $ 20,770  
Section 174 capitalized costs     1,697       —  
Tax credits     99       199  
Accruals and reserves     2,314       2,446  
Property and equipment     51       102  
ASC 842     14       —  
Alternative minimum tax credits     21       21  
Total gross deferred tax assets     23,133       23,538  
Less: valuation allowance     (22,996 )     (22,920 )
Total deferred tax assets net of valuation allowance     137       618  
Deferred tax liabilities:                
Property and equipment     —       —  
Accruals and reserves     —       (550 )
ASC 842 right of use asset     (14 )     —  
Net deferred tax assets (liabilities)   $ 123     $ 68  
Schedule of Cumulative Foreign Earnings

Estimate of cumulative foreign earnings is as follows as of December 31:

 

    2022     2021  
China   $ 5,031     $ 4,741  
India     5,098       5,061  
Total   $ 10,129     $ 9,802  
Summary of Operating Loss Carryforwards

 

    2022     2021  
Federal NOL   $ 88,375     $ 92,262  
State NOL   $ 7,429     $ 27,577  
Summary of Tax Credit Carryforwards

The Company had research and development (“R&D”) credit carryforwards as follows as of December 31:

 

    2022     2021  
Federal R&D credits   $ —     $ 99  
California R&D credits   $ 125     $ 126  
Schedule of Unrecognized Tax Benefits

The following table summarizes the activity related to unrecognized tax benefits as follows as of December 31:

 

In thousands   2022     2021  
Unrecognized benefit-beginning of period   $ 1,306     $ 1,190  
Gross increases-prior period tax positions     —       34  
Gross (decreases)-prior period tax positions     (33 )     —  
Decrease prior period tax positions - settlements     —       —  
Gross increases -current period tax positions     —       82  
Unrecognized benefit-end of period   $ 1,273     $ 1,306