Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

5. Income Taxes

The Company files income tax returns in the U.S. federal and Massachusetts jurisdictions as well as in the Netherlands. The components of the income tax expense (benefit) from continuing operations are as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022		2021
	(In thousands)						(In thousands)
U.S. federal	$	221		$	114		$	50	$	(112	)
U.S. state		71			47			19		(47	)
Total current income tax benefit	$	292		$	161		$	69	$	(159	)
U.S. federal	$	(114	)	$	(54	)	$	124	$	207
U.S. state		(47	)		(45	)		52		63
Total deferred income tax expense	$	(161	)	$	(99	)	$	176	$	270
Total income tax expense	$	131		$	62		$	245	$	111

After consideration of all positive and negative evidence, we believe that it is more-likely-than-not that the Netherlands deferred tax assets, that are not supported by reversing temporary differences, will not be realized. As a result, we established a full valuation allowance against deferred tax assets of the Netherlands.

Under Dutch tax law, net operating loss carryforwards may be used to offset future taxable income in full up to €1.0 million and 50% of taxable income that exceeds €1.0 million. Effective as of January 1, 2022, these losses can be carried forward indefinitely.