Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Taxes [Abstract]

Components of Income Tax Expense

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

	Year Ended December 31,
	2023			2022
Current:
Federal	$	—		$	—
State		28			23
		28			23
Deferred:
Federal		(68	)		23
State		(52	)		17
		(120	)		40
(Benefit from) / provision for income taxes	$	(92	)	$	63

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,
	2023			2022
Deferred tax assets:
Net operating loss carryforwards	$	46,718		$	45,077
Intangible assets		2,138			1,697
Inventories		71			57
Reserves and accrued expenses		1,381			1,431
Stock-based compensation		180			548
Operating lease liabilities		145			240
Interest expense limitation carryover		552			208
Property and equipment		—			1,111
Gross deferred tax assets		51,185			50,369
Less: valuation allowance		(50,139	)		(49,005	)
		1,046			1,364
Deferred tax liabilities:
Property and equipment		(412	)		—
Operating lease right-of-use assets		(154	)		(242	)
Goodwill		(666	)		(1,095	)
481(a) adjustment		—			(333	)
		(1,232	)		(1,670	)
Net deferred tax liability	$	(186	)	$	(306	)

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,
	2023		2022
Federal	$	205,212	$	198,144
State	$	63,566	$	60,784

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:

	Year Ended December 31,
	2023			2022
Federal tax expense at statutory rate		21.00	%		21.00	%
State tax, net of federal benefit		0.18	%		(0.58	)%
Permanent differences		(1.89	)%		(2.23	)%
Other difference and true ups		(8.07	)%		(11.20	)%
Change in valuation allowance		(10.38	)%		(8.14	)%
Effective income tax rate		0.84	%		(1.15	)%