Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of reconciliation of income taxes

A reconciliation of income taxes computed at the statutory federal income tax rate to income taxes as reflected in the financial statements is summarized as follows:


	Year Ended December 31,
	2022		2021
Federal income tax expense at statutory rate	(21.0)	%	(21.0)	%
State income tax, net of federal benefit	(5.5)		(4.8)
Permanent differences	3.2		(1.8)
Change in state tax rate	0.3		(0.1)
Changes of state net operating losses	(1.6)		2.8
Change in stock options and restricted stock	7.8		(4.9)
Change in valuation allowance	17.7		29.8
Other	(0.9)		—
Effective tax rate	0.0	%	0.0	%

Schedule of deferred tax assets and liabilities

The Company's deferred tax assets and liabilities for the periods indicated are summarized below:


	December 31,
(In thousands)	2022		2021
Deferred tax assets:
Net operating loss carryforward	$	37,308	$	36,136
Stock options and restricted stock	4,528		4,805
Interest expense	258		244
Inventory reserve	410		399
Allowance for doubtful accounts	32		17
Accrued expenses	1,654		1,073
Research and development expense	922		—
Deferred revenue	1,050		880
Leasehold improvements and equipment	60		74
Intangibles	104		95
Operating leases	185		85
	46,511		43,808
Less: Valuation allowance	(46,254)		(43,363)
Total deferred tax assets	257		445
Deferred tax liabilities:
Prepaid expenses	(257)		(445)
Total deferred tax liabilities	(257)		(445)
Net deferred tax assets (liabilities)	$	—	$	—