Income Taxes

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The U.S. and foreign components of pretax loss are as follows:

	Year Ended December 31,
	2024		2023
Pretax (Loss) Income
U.S.	$	(480)	$	(8,444)
Foreign	—		5
Total Pretax Loss	$	(480)	$	(8,439)

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):

	Year Ended December 31,
	2024		2023
Tax Benefit Computed of Pretax Loss	$	(101)	$	(1,772)
Changes in Tax Laws	—		—
Foreign Income Tax Expense	—		—
Effect of Change in Valuation Allowance	101		1,772
Total Income Tax Expense	$	—	$	—

The details of the net deferred tax asset are as follows (dollars in thousands):

	December 31,
	2024		2023
Deferred tax assets:
Net Operating Loss Carryforward	$	71,423	$	72,612
Stock Based Compensation	4,584		7,856
General Business Credit	6,872		6,872
Research & Experimental Expenses	338		459
Inventories	474		398
Accrued Expenses	84		144
Deferred License Revenue	106		118
Other Deferred Tax Assets	1,974		1,989
Total Deferred Tax Assets	85,855		90,448
Deferred Tax Liabilities:
Goodwill & Intangible Assets	327		259
Prepaid Expenses	205		181
Book over Tax Depreciation	60		35
Total Deferred Tax Liabilities	592		475
Subtotal	85,263		89,973
Valuation Allowance	(85,263)		(89,973)
Net Deferred Tax Asset	$	—	$	—

Deferred tax assets result primarily from net operating loss carryforwards. For federal tax purposes, we have net operating loss carryforwards of approximately $320.7 million of which approximately $192.1 million began expiring in 2024 and will continue to expire through 2039.

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, 2024 and 2023 as a result of a full valuation allowance against the net deferred tax assets as of December 31, 2024 and 2023. The valuation allowance decreased by $4.7 million during the year ended December 31, 2024. Considered together with the Company's limited history of operating income and its net losses in 2024 and 2023, management has placed a full valuation allowance against the net deferred tax assets as of December 31, 2024 and 2023.

The Company 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, 2024 and 2023. The Company has not been under tax examination in any jurisdiction for the years ended December 31, 2024 and 2023. The Company completed an audit by the Internal Revenue Services for the 2021 tax year resulting in no adjustments. Tax examination years of 2022 and 2023 remain open. A recent IRC Section 382 study has not been performed, which could limit the value of the Company's net operating losses.