Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

The components of loss before income taxes are as follows (in thousands):

	Year Ended December 31,
	2020			2019
Domestic	$	(6,150	)	$	(28,871	)
Foreign		—			—
Loss before income taxes	$	(6,150	)	$	(28,871	)

Schedule of Income Tax Expense Comprised of Current State Taxes and Foreign Taxes

The total income tax (benefit) expense for the years ended December 31, 2020 and 2019 was $(124,000) and $2,000, respectively, and is comprised of current state taxes and foreign taxes withheld by governmental agencies outside of the United States, as follows (in thousands):

	Year Ended December 31,
	2020			2019
Current:
Federal	$	—		$	—
State		(28	)		2
Foreign		10			—
Total current tax (benefit) expense		(18	)		2
Deferred:
Federal		(84	)		—
State		(22	)		—
Foreign		—			—
Total deferred tax (benefit) expense		(106	)		—
Total tax (benefit) expense	$	(124	)	$	2

Reconciliation of the Statutory Federal Income Tax Rate

The following is a reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows:

	Year Ended December 31,
	2020			2019
Expected income tax provision at the federal statutory rate		21.0	%		21.0	%
State taxes, net of federal benefits		9.4	%		5.3	%
Change in valuation allowance		(43.8	)%		(26.4	)%
Transaction costs		(2.2	)%		—
Related offering costs		—			(0.5	)%
Derivative liabilities		22.4	%		—
Non-Controlling Interest		(4.7	)%		—
Withholding taxes		(0.2	)%		—
Other		—			0.6	%
Income tax provision		1.9	%		—

Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands)

	As of December 31,
	2020			2019
Deferred tax assets:
Net operating loss carryforwards	$	15,478		$	13,267
Unearned revenue		2			11
Stock-based compensation		3,881			3,384
Accrued payroll and benefits		236			224
Research and development credits		16			—
Fixed asset basis difference		84			90
Inventory reserve		491			568
Lease liability		1,622			565
Common stock warrant assets		—			988
Contingent Consideration		531			—
Charitable contributions		3			2
Total deferred tax assets		22,344			19,099
Deferred tax liabilities:
Right of use asset		(1,548	)		(526	)
Amortizable intangibles		(98	)		—
Income from Partnerships		(13	)		—
Other		(174	)		—
Total deferred tax liabilities		(1,833	)		(526	)
Less valuation allowance		(20,511	)		(18,573	)
Net deferred tax assets	$	—		$	—

Schedule of Unrecognized Tax Benefits

As of December 31, 2020, the Company had the following unrecognized tax benefits (in thousands):

	Year Ended December 31,
	2020		2019
Unrecognized tax benefit beginning balance	$	—	$	—
Increases for tax positions taken in prior years		2		—
Decreases for tax positions taken in prior years		—		—
Increases for tax positions taken in current years		15		—
Settlements		—		—
Unrecognized tax benefit ending balance	$	17	$	—