INCOME TAXES

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 8: INCOME TAXES

Income tax expense is comprised of the following: 

	Year Ended December 31,
	2021			2020
Federal:
Current	$	92		$	–
Deferred		20			10
Total	$	112		$	10
State:
Current	$	20		$	13
Deferred		(20	)		(10	)
Total	$	–		$	3
Total income tax expense	$	112		$	13

Income tax expense (benefit) differs from the amount computed by applying the U.S. statutory income tax rate to loss before income taxes for the reasons set forth below. 

	Year Ended December 31,
	2021			2020
Income tax expense (benefit) at federal statutory rate		21.00	%		(21.00	)%
State tax (benefit) expense, net of federal benefit		(0.16	)%		0.01	%
Valuation allowance		(0.38	)%		20.76	%
Research and development credits		0.48	%		0.21	%
Other permanent differences		0.25	%		0.24	%
PPP loan forgiveness		(19.13	)%		0.00	%
Foreign withholding taxes		2.97	%		0.00	%
Other, net		(0.45	)%		0.00	%
Total effective rate		4.58	%		0.21	%

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as operating loss and tax credit carry forwards. The tax effects of the temporary differences and carry forwards are as follows: 

	December 31,
	2021			2020
Deferred tax assets:
Net operating loss carryforwards	$	5,191		$	5,339
R&D and other credit carryforwards		638			650
Share-based compensation		784			774
Intangible amortization		1			6
Allowance for bad debt		115			18
Other		51			137
Total deferred tax assets	$	6,780		$	6,924
Less: valuation allowance		(6,628	)		(6,637	)
Net deferred tax assets	$	152		$	287
Deferred tax liabilities:
Depreciation on property and equipment	$	(152	)	$	(287	)
Total deferred tax liabilities	$	(152	)	$	(287	)
Net deferred tax position	$	–		$	–

We have $24,223 of federal and $1,380 of state net operating loss (“NOL”) carry forwards and $638 in research and development and other credits available to offset future taxable income. These federal and state NOLs will expire at various dates through 2034, except for federal NOLs generated in 2018 and subsequent years. Management analyzed its current operating results and future projections and determined that a full valuation allowance was needed due to our cumulative losses in recent years. We have no uncertain tax positions at December 31, 2021. Accordingly, we do not have any accruals for penalties or interest related to our tax returns. Should an examination or audit arise, we would evaluate the need for an accrual and record one, if necessary. Our federal tax returns from the tax years ended December 31, 2018 through December 31, 2020 are open to examination by the IRS.