Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Taxes [Abstract]

Components of Income Tax Expense

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

	Year Ended December 31,
	2024			2023
Current:
Federal	$	—		$	—
State		16			28
		16			28
Deferred:
Federal		(107	)		(68	)
State		(79	)		(52	)
		(186	)		(120	)
Benefit from income taxes	$	(170	)	$	(92	)

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,
	2024			2023
Deferred tax assets:
Net operating loss carryforwards	$	46,295		$	46,718
Intangible assets		2,308			2,138
Inventories		57			71
Reserves and accrued expenses		2,068			1,381
Stock-based compensation		162			180
Operating lease liabilities		305			145
Interest expense limitation carryover		1,024			552
Goodwill		239			—
Gross deferred tax assets		52,458			51,185
Less: valuation allowance		(51,671	)		(50,139	)
		787			1,046
Deferred tax liabilities:
Property and equipment		(478	)		(412	)
Operating lease right-of-use assets		(309	)		(154	)
Goodwill		—			(666	)
		(787	)		(1,232	)
Net deferred tax liability	$	—		$	(186	)

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,
	2024		2023
Federal	$	203,490	$	205,212
State	$	62,819	$	63,566

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,
	2024			2023
Federal tax expense at statutory rate		21.00	%		21.00	%
State tax, net of federal benefit		(0.12	)%		0.18	%
Permanent differences		(1.15	)%		(1.89	)%
Other difference and true ups		(3.13	)%		(8.07	)%
Change in valuation allowance		(14.94	)%		(10.38	)%
Effective income tax rate		1.66	%		0.84	%