INCOME TAXES

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 8: INCOME TAXES

Income tax expense is comprised of the following:

	Years Ended December 31,
	2024		2023
Federal:
Current	$	–	$	–
Deferred		–		–
Total		–		–
State:
Current		16		5
Deferred		–		–
Total		16		5
Total income tax expense	$	16	$	5

Income tax expense 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.

	Years Ended December 31,
	2024			2023
Income tax expense (benefit) at federal statutory rate		21.00%			(21.00%	)
State tax expense (benefit), net of federal benefit		0.51%			0.23%
Valuation allowance		(21.58%	)		20.49%
Research and development credits		0.45%			0.45%
Other permanent differences		0.24%			0.17%
Total effective rate		0.62%			0.34%

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 carryforwards. The tax effects of the temporary differences and carryforwards are as follows:

	December 31,
	2024			2023
Deferred tax assets:
Net operating loss carryforwards	$	5,432		$	6,090
Research and development and other credit carryforwards		618			630
Share-based compensation		859			816
Intangible amortization		(10	)		(12	)
Right-of-use operating lease liabilities		1,289			1,389
Other		62			(5	)
Total deferred tax assets		8,250			8,908
Less: valuation allowance		(6,978	)		(7,546	)
Net deferred tax assets	$	1,272		$	1,362
Deferred tax liabilities:
Depreciation and amortization on property, plant and equipment	$	(141	)	$	(132	)
Right-of-use operating lease assets		(1,131	)		(1,230	)
Total deferred tax liabilities	$	(1,272	)	$	(1,362	)
Net deferred tax position	$	–		$	–

We have $25,387 of federal and $1,322 of state net operating loss (“NOL”) carryforwards and $618 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, which have no expiration dates. 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, 2024. 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, 2020 through December 31, 2024 are open to examination by the Internal Revenue Service.