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Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The significant components of our (provision for) benefit from income taxes attributable to current operations for the periods stated were as follows:
 For the Year Ended December 31,
(Dollars in thousands)202320222021
Income (loss) before income taxes$22,325 $997 $(27,332)
Current:
Federal tax$— $— $— 
State tax299 38 48 
Foreign tax(17)50 283 
Total current282 88 331 
Deferred:
Federal tax5,099 (20,642)(4,178)
State tax1,010 25 (1,561)
Foreign tax268 (330)256 
Total deferred6,377 (20,947)(5,483)
Provision for (benefit from) income taxes$6,659 $(20,859)$(5,152)
Foreign income before income tax (benefit) expense is immaterial to consolidated income before income tax (benefit) expense. The following table summarizes the principal elements of the difference between the United States federal statutory rate of 21% and our effective tax rate for the years ended December 31, 2023, 2022 and 2021:
(Dollars in thousands)202320222021
Income (loss) before income taxes$22,325 $997 $(27,332)
Income taxes computed at the federal statutory rate$4,688 21.0 %$209 21.0 %$(5,740)21.0 %
State income taxes, net of federal benefit1,343 6.0 %121 12.1 %(1,513)5.5 %
Change in valuation allowance— — %(21,850)(2,191.6)%2,070 (7.6)%
Research and development and other tax credits— — %(88)(8.8)%(808)3.0 %
Excess executive compensation405 1.8 %231 23.1 %272 (1.0)%
Other223 0.9 %518 52.0 %567 (2.1)%
Provision for (benefit from) income taxes$6,659 29.8 %$(20,859)(2,092.2)%$(5,152)18.8 %
The anticipated effective income tax rate is expected to continue to differ from the federal statutory rate primarily due to the effect of state income taxes and permanent differences between book and taxable income. The earnings of non-U.S. subsidiaries are deemed to be indefinitely reinvested in non-U.S. operations.
The components of deferred income tax assets at December 31, 2023 and 2022 were as follows: 
 December 31,
(Dollars in thousands)20232022
Capitalized research and development costs$12,706 $13,862 
Net operating loss carryforward22,959 25,710 
Property and equipment3,445 4,142 
Accrued liabilities, reserves and other expenses2,781 3,877 
Research and development credits6,430 6,430 
Tax credits681 717 
Stock-based compensation1,733 1,834 
Operating lease liabilities2,831 3,999 
Other167 120 
Gross deferred income tax assets53,733 60,691 
Deferred income tax liabilities:
Intangible assets(2,299)(2,269)
Right-of-use assets(2,688)(3,534)
Prepaid and other expenses(158)(162)
Gross deferred income tax liabilities(5,145)(5,965)
Net deferred income tax assets48,588 54,726 
Valuation allowance(2,328)(2,328)
Total deferred income tax assets$46,260 $52,398 
Net Operating Losses and Tax Credits
As of December 31, 2023, we had approximately $99.4 million of federal net operating losses available to offset future taxable income, of which approximately $54.4 million were with expiration dates through 2030 and $45.0 million that were indefinite lived.

As of December 31, 2023, we had approximately $40.0 million of state net operating losses available to offset future taxable income, of which approximately $37.5 million were with expiration dates through 2043 and $2.5 million that were indefinite lived.

As of December 31, 2023, we had approximately $6.4 million of research and development tax credit carryforwards that expire in varying amounts with expiration dates between 2030 through 2042.
Valuation Allowance
We assess the recoverability of our deferred income tax assets, which represent the tax benefits of future tax deductions, based on available positive and negative evidence and by considering the adequacy of future taxable income from all sources, including prudent and feasible tax planning strategies. This assessment is required to determine whether, based on all available evidence, it is "more likely than not" (meaning a probability of greater than 50%) that all or some portion of the deferred income tax assets will be realized in future periods.
Prior to 2022, the cumulative loss incurred by the Company over the prior three-year period, constituted a piece of objective negative evidence which limited our ability to consider other subjective evidence. In 2022, the completion of restructuring efforts and our expected return to profitability (as indicated by income generated before income taxes in 2022), we eliminated costs that had resulted in our cumulative loss over the prior three-year period, that are not present in our current operating posture or future forecasts. As a result, we determined the negative evidence presented by a cumulative loss position to be weighted less in our assessment compared to positive evidence from our historical core operating results and future projections. Additionally, we considered there to be lower forecast uncertainty as a result of our new strategy and lessening impacts of the COVID-19 pandemic, such that we believe that positive evidence from our projections of future profitability to be weighted more heavily in our assessment of the recoverability of our deferred income tax assets. Based on the assessment completed, utilizing our annual long-range planning and forecasting updates, traditionally completed in the fourth quarter of each year, we reduced the valuation allowance by $21.9 million during the year ended December 31, 2022.
The Company maintained a valuation allowance of $2.3 million as of December 31, 2023 and 2022 related to Federal Foreign Tax Credits and certain state net operating losses and state tax credits, as the Company does not believe current projections of future taxable income will be sufficient to utilize those tax assets prior to expiration.
Income Tax Audits
The 2020, 2021 and 2022 federal and state income tax returns are within the statute of limitations (“SOL”) and are currently not under examination by any Federal or state tax authority. The federal SOL generally expire three years following the filing of the return or in some cases three years following the utilization or expiration of net operating loss carry forwards.
We operate in all states and the District of Columbia and are subject to various state income and franchise tax audits. The states’ SOL varies from three to four years from the later of the due date of the return or the date filed. We usually file our federal and all state and local income tax returns on or before September 15 of the following year; therefore, the SOL for those states with a three-year SOL is open for calendar years ending 2020 through 2022, and for the four-year SOL states, the SOL is open for years ending from 2019 through 2022.