Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.24.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2023
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:

 

    2023     2022  
Domestic loss   $ (425 )   $ (13,885 )
Foreign subsidiaries income (loss)     709       (18 )
Income (loss) before income taxes   $ 284     $ (13,903 )

 

    2023     2022  
Current income tax expense:                
Federal   $ 2     $ —  
State     56       21  
Foreign     250       306  
Total Current     308       327  
                 
Deferred income tax expense (benefit):                
Federal     —       —  
State     —       —  
Foreign     66       (143 )
Total Deferred     66       (143 )
Total provision for income taxes   $ 374     $ 184  
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:

 

    2023     2022  
Statutory federal income tax rate     21.00 %     21.00 %
State income taxes, net of federal tax benefits     23.20 %     1.00 %
Stock compensation     84.92 %     -1.43 %
ASC 842 Adoption     0.00 %     1.48 %
Foreign rate differential     58.55 %     -1.20 %
GILTI Inclusion     26.15 %     -0.17 %
Non-deductible expenses     1.02 %     0.00 %
Valuation allowance     -83.07 %     -22.00 %
Effective tax rate     131.77 %     -1.32 %
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:

 

    2023     2022  
Gross deferred tax assets:                
Net operating loss carryforward   $ 18,887     $ 18,937  
Section 174 capitalized costs     1,873       1,697  
Tax credits     100       99  
Accruals and reserves     1,927       2,314  
Property and equipment     21       51  
ASC 842     12       14  
Alternative minimum tax credits     21       21  
Total gross deferred tax assets     22,841       23,133  
Less: valuation allowance     (22,774 )     (22,996 )
Total deferred tax assets net of valuation allowance     67       137  
Deferred tax liabilities:                
ASC 842 right of use asset     (12 )     (14 )
Net deferred tax assets   $ 55     $ 123  
Schedule of Cumulative Foreign Earnings

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

 

    2023     2022  
China   $ 5,471     $ 5,031  
India     5,102       5,098  
Total   $ 10,573     $ 10,129  
Summary of Operating Loss Carryforwards

The Company had net operating loss carryovers as follows as of December 31:

 

    2023     2022  
Federal NOL   $ 88,066     $ 88,375  
Domestic Tax Authority   $ 88,066     $ 88,375  
State NOL   $ 7,086     $ 7,429  
State and Local Jurisdiction   $ 7,086     $ 7,429  
Summary of Tax Credit Carryforwards

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

 

    2023     2022  
Federal R&D credits   $ —     $ —  
Internal Revenue Service (IRS)   $ —     $ —  
California R&D credits   $ 127     $ 125  
California Franchise Tax Board   $ 127     $ 125  
Schedule of Unrecognized Tax Benefits

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

 

    2023     2022  
Unrecognized benefit-beginning of period   $ 1,273     $ 1,306  
Gross increases-prior period tax positions     1       —  
Gross (decreases)-prior period tax positions     —       (33 )
Unrecognized benefit-end of period   $ 1,274     $ 1,273