Income taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income taxes [Abstract]

Components of Income Tax Expense (Benefit)

The components of the net loss before income taxes for the years ended December 31, 2021 and 2020 are as follows (dollars in thousands):

	2021			2020
Domestic	$	(27,208	)	$	(30,945	)
Foreign		(23	)		8
Net loss before income taxes	$	(27,231	)	$	(30,937	)

The income tax provision (benefit) from continuing operations consists of the following at December 31, 2021 and 2020 (dollars in thousands):

Current:	2021			2020
Federal	$	-		$	-
State		28			-
Foreign		-			-
		28			-
Deferred:
Federal		(5,038	)		(5,420	)
State		(869	)		(964	)
Foreign		4			1
Change in valuation allowance		5,903			6,383
	$	28		$	-

Effective Income Tax Reconciliation

The income tax provision (benefit) amounts differ from the amounts computed by applying the United States federal statutory income tax rate of 21% for the years ended December 31, 2021 and 2020 to pretax loss from operations as a result of the following for the years ended December 31, 2021 and 2020 (dollars in thousands):

	2021			2020
Tax expense (benefit) at statutory rate	$	(5,718	)	$	(6,498	)
Increase (reduction) in income taxes resulting from:
State income taxes (benefits), net of federal benefit		(837	)		(913	)
Non-deductible gain on warrant adjustment valuation		417			670
Income from foreign subsidiaries		-			2
Change in valuation allowance		5,903			6,383
Registration penalties		354			-
Other		(91)			356
Income tax expense (benefit)	$	28		$	-

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to the deferred tax assets at December 31, 2021 and 2020 are as follows (dollars in thousands):

	2021			2020
Deferred tax assets:
Net operating loss carryforwards	$	33,238		$	28,048
Net operating loss carryforwards - foreign		23			19
Excess of tax basis over book value of property and equipment		14			8
Excess of tax basis over book value of intangible assets		1,632			1,811
Stock-based compensation		1,613			1,613
Accrued employee compensation		698			427
Capitalized equity costs		49			49
Net change in reserve accounts		898			287
		38,165			32,262
Valuation allowance		(38,165	)		(32,262	)
Net deferred tax asset	$	-		$	-