Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Taxes [Abstract]

Components of Income Tax Expense

Income tax expense consists of the following (in thousands):

	Year Ended December 31,
	2022		2021
Current:
Federal	$	—	$	—
State		23		22
		23		22
Deferred:
Federal		23		23
State		17		(11	)
		40		12
Income tax expense	$	63	$	34

Components of Deferred Tax Liability for Federal Income Taxes

Significant components of the Company’s deferred tax liability for federal income taxes consisted of the following (in thousands):

	December 31,
Deferred tax assets (liabilities)	2022			2021
Net operating loss carryforwards	$	45,077		$	46,596
Intangible assets		1,697			1,039
Inventory		57			26
Reserves and accrued expenses		1,431			1,230
Property and equipment		1,111			441
Stock-based compensation		548			458
Operating lease right-of-use assets		(242	)		(159	)
Goodwill		(1,095	)		(950	)
Operating lease liabilities		240			177
481(a) adjustment		(333	)		(667	)
Interest expense limitation carryover		208			—
Less: valuation allowance		(49,005	)		(48,457	)
Net deferred tax liability	$	(306	)	$	(266	)

Net Operating Loss Carryforwards

The Company had net operating loss (“NOL”) carryforwards for federal and state income tax purposes as follows (in thousands):

	December 31,
	2022		2021
Federal	$	198,144	$	204,314
State	$	60,784	$	60,654

Reconciliation of Income Tax Expense

A reconciliation of income tax expense at the statutory federal income tax rate and income taxes as reflected in the consolidated financial statements is as follows:

	December 31,
	2022			2021
Federal tax expense at statutory rate		21.00	%		21.00	%
State tax, net of federal benefit		(0.58	)%		(0.33	)%
Permanent differences		(2.23	)%		8.90	%
Other difference and true ups		(11.20	)%		(25.27	)%
Change in valuation allowance		(8.14	)%		(5.57	)%
Tax provision		(1.15	)%		(1.27	)%