Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Taxes

Schedule of components of income taxes

For the years ended December 31, 2023 and 2022, the Company’s provision for income tax consisted of (in thousands):

	Year Ended December 31,
	2023		2022
Current:
Federal	$	—	$	—
State		134		14
Foreign		—		—
Total Current	$	134	$	14
Deferred:
Federal	$	40	$	—
State		(190)		—
Foreign		—		—
Total Deferred	$	(150)	$	—
Provision for income taxes	$	(16)	$	14

Schedule of reconciliation of statutory federal income tax rate

	Year Ended December 31,
	2023		2022
Tax at statutory federal rate	21.0	%	21.0	%
State taxes, net of federal benefit	1.7		1.9
Stock-based compensation	0.6		4.2
IRC section 162(m) limitation	3.9		1.1
Change in valuation allowance	(28.5)		(28.0)
Other	1.1		—
Provision for income taxes	(0.2)	%	0.2	%

Schedule of tax effects of temporary differences and carryforwards

The tax effects of temporary differences and carryforwards that give rise to significant portions of the deferred tax assets are as follows (in thousands):

	December 31,
	2023		2022
Deferred tax assets:
Net operating loss carryforwards	$	22,068	$	27,110
Inventory		287		273
Accruals		863		737
Depreciation and amortization		13		27
Research and experimental expenditures		4,728		2,229
Stock-based compensation		268		270
Right of use liability		1,245		1,477
Gross deferred tax assets		29,472		32,123
Valuation allowance		(27,748)		(30,328)
Deferred tax assets		1,724		1,795
Deferred tax liabilities:
Right of use asset		(1,226)		(1,463)
Other		(348)		(332)
Deferred tax liabilities		(1,574)		(1,795)
Net deferred tax assets	$	150	$	—

Schedule of changes in the Company's gross unrecognized tax benefits

A summary of changes in the Company’s gross unrecognized tax benefits for the years ended December 31, 2023 and 2022 was as follows (in thousands):

	Year Ended December 31,
	2023		2022
Unrecognized tax expense, beginning of the year	$	105	$	105
Decrease related to prior year tax positions		—		(16)
Increase related to prior year tax positions		368		—
Increase related to current year tax positions		—		16
Unrecognized tax expense, end of year	$	473	$	105