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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
A reconciliation of income tax expense at the statutory rate to income tax expense at our effective tax rate is as follows (dollars in thousands):
20212020
Tax Expense (Benefit) Computed at 22.62% and 22.67% of Pretax Income (Loss)
$(6,744)$(6,373)
Changes in Tax Laws— — 
Foreign Income Tax Expense— — 
Effect of Change in Valuation Allowance6,744 6,373 
Total Income Tax Expense$— $— 
The details of the net deferred tax asset are as follows (dollars in thousands):
December 31,
20212020
Deferred tax assets:
Net Operating Loss Carryforward$66,895 $59,586 
Stock Based Compensation7,726 7,582 
Deferred Revenue1,846 2,310 
General Business Credit6,872 6,872 
Accrued Expenses174 185 
Inventories88 666 
Book over Tax Depreciation6 25 
Other Deferred Tax Assets865 387 
Total Deferred Tax Assets84,472 77,613 
Deferred Tax Liabilities:
Goodwill & Intangible Assets183 155 
Prepaid Expenses381 294 
Total Deferred Tax Liabilities564 449 
Subtotal83,908 77,164 
Valuation Allowance(83,908)(77,164)
Net Deferred Tax Asset$— $— 

The Tax Cuts and Jobs Act of 2017 ("TCJA") impacted how net operating losses are utilized. The Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") temporarily suspends the TCJA limitation, allowing a net operating loss carryforward to fully offset taxable income in tax years beginning before January 1, 2021. The CARES Act also temporarily reinstated a carryback period for all net operating losses generated in years beginning after December 31, 2017 and before January 1, 2021. The carryback period for those years is five years under the CARES Act.

Deferred tax assets result primarily from net operating loss carryforwards. For federal tax purposes, we have net operating loss carryforwards of approximately $294.8 million that expire between 2022 and 2038.

In assessing the potential for realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company recognized no income tax expense or benefit for the years ended December 31, 2021, and 2020. While the Company anticipates generating income within the next year or two, it expects to incur operating losses until its drug products are marketed and generating sufficient profits to offset its operating expenses. Considered together with the Company's limited history of operating income and its net losses in 2021 and 2020, management has placed a full valuation allowance against the net deferred tax assets as of December 31, 2021 and 2020. The portion of the valuation allowance resulting from excess tax benefits on share based compensation that would be credited directly to contributed capital if recognized in subsequent periods is $4.2 million.

Rockwell accounts for its uncertain tax positions in accordance with ASC 740‑10, Income Taxes and the amount of unrecognized tax benefits related to tax positions is not significant at December 31, 2021 and 2020. The Company has not been under tax examination in any jurisdiction for the years ended December 31, 2021 and 2020. Tax examination years of 2017 to 2020 remain open.