Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.22.2
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Schedule of Income (Loss) Before Income Taxes and Components of Provision (Benefit) for Income Taxes

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:

 

 

2021

 

 

2020

 

Domestic loss

$

(39,065

)

 

$

(31,390

)

Foreign subsidiaries income

 

605

 

 

 

937

 

Income (loss) before income taxes

$

(38,460

)

 

$

(30,453

)

 

 

 

 

 

 

 

 

 

2021

 

 

2020

 

Current income tax expense:

 

 

 

 

 

 

 

Federal

$

 

 

$

(53

)

State

 

17

 

 

 

5

 

Foreign

 

169

 

 

 

(494

)

Total Current

 

186

 

 

 

(542

)

 

 

 

 

 

 

 

 

Deferred income tax expense:

 

 

 

 

 

 

 

Federal

 

 

 

 

54

 

State

 

 

 

 

 

Foreign

 

(19

)

 

 

(33

)

Total Deferred

 

(19

)

 

 

21

 

Total provision (benefit) for income taxes

$

167

 

 

$

(521

)

Schedule of Effective Tax Rate Differs from Federal Statutory Rate The Company’s effective tax rate differs from the federal statutory rate due to the following for the years ended December 31:

 

 

2021

 

 

2020

 

Statutory federal income tax rate

 

21.00

%

 

 

21.00

%

State income taxes, net of federal tax benefits

 

1.65

%

 

 

-0.54

%

Stock compensation

 

-0.54

%

 

 

-0.74

%

Foreign rate differential

 

-0.06

%

 

 

2.38

%

Tax credits

 

0.26

%

 

 

0.00

%

GILTI Inclusion

 

-0.41

%

 

 

-0.81

%

Section 382 limits

 

0.00

%

 

 

-27.71

%

Non-deductible expenses

 

-0.01

%

 

 

-0.17

%

Valuation allowance

 

-22.34

%

 

 

8.30

%

Effective tax rate

 

-0.44

%

 

 

1.71

%

 

 

Schedule of Significant Components of Deferred Tax Assets and Liabilities The following table presents the significant components of the Company’s deferred tax assets and liabilities at December 31:

 

2021

 

 

2020

 

Gross deferred tax assets:

 

 

 

 

 

 

 

Net operating loss carryforward

$

20,702

 

 

$

12,684

 

Tax credits

 

199

 

 

 

92

 

Accruals and reserves

 

2,333

 

 

 

2,113

 

Property and equipment

 

102

 

 

 

83

 

Alternative minimum tax credits

 

21

 

 

 

21

 

Total gross deferred tax assets

 

23,357

 

 

 

14,993

 

Less: valuation allowance

 

(22,738

)

 

 

(14,281

)

Total deferred tax assets net of valuation allowance

 

619

 

 

 

712

 

Deferred tax liabilities:

 

 

 

 

 

 

 

Property and equipment

 

 

 

 

 

Accrual and reserves

 

(550

)

 

 

(678

)

Net deferred tax assets (liabilities)

$

69

 

 

$

34

 

Schedule of Estimate of Cumulative Foreign Earnings

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

 

 

2021

 

 

2020

 

China

$

4,741

 

 

$

4,195

 

India

 

5,061

 

 

 

4,961

 

Total

$

9,802

 

 

$

9,156

 

Schedule of Net Operating Loss Carryovers The Company had net operating loss carryovers (NOL) for federal and state income tax purposes of approximately $92,262 and $27,577, respectively, as of December 31, 2021. Approximately $9,939 of federal NOLs will expire beginning in 2037, while approximately $82,323 generated beginning in 2018 have an indefinite life.  The state NOLs will expire if unused in years 2027 through

 

 

2021

 

 

2020

 

Federal NOL

$

92,262

 

 

$

56,805

 

State NOL

$

27,577

 

 

$

12,418

 

 

 

Schedule of Research and Development Credit Carryforwards

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

 

 

2021

 

 

2020

 

Federal R&D credits

$

99

 

 

$

 

California R&D credits

$

126

 

 

$

117

 

 

Summary of Activity Related to Unrecognized Tax Benefits

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

 

In thousands

2021

 

 

2020

 

Unrecognized benefit-beginning of period

$

1,190

 

 

$

6,900

 

Gross increases-prior period tax positions

 

34

 

 

 

96

 

Gross (decreases)-prior period tax positions

 

 

 

 

(5,818

)

Decrease prior period tax positions - settlements

 

 

 

 

(95

)

Gross increases -current period tax positions

 

82

 

 

 

107

 

Unrecognized benefit-end of period

$

1,306

 

 

$

1,190