Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Benefit for Income Taxes

The Company is subject to federal and state income taxes in the United States. The income taxes on income (loss) before income taxes consisted of the following:

	Year Ended December 31,
(In thousands)	2021			2020
Current
Federal and state	$	-		$	-
Deferred
Federal		(1,401	)		(1,903	)
State		(303	)		(554	)
Valuation allowance		1,902			2,457
		198			-
Provision for income tax	$	198		$	-

Reconciliation of Effective Income Tax Benefit

The Company’s effective income tax expense differed from the U.S. corporate statutory income tax rate for the years ended December 31, 2021 and 2020. A reconciliation is as follows:

	Year Ended December 31,
(In thousands)	2021					2020
Tax on income (loss) before income taxes	$	179		21	%	$	(1,431	)	21	%
Effect of state taxes (net of federal tax benefit)		(303	)	-36	%		(552	)	8	%
Excess tax benefit from share-based compensation		(2,801	)	-328	%		(1,227	)	18	%
Nondeductible executive compensation		1,556		182	%		656		-10	%
Forgiveness of the CARES Act loan		(456	)	-53	%		-		0	%
Other permanent differences		121		14	%		97		-1	%
Valuation allowance		1,902		223	%		2,457		-36	%
Income tax expense	$	198		23	%	$	-		0	%

Schedule of Components of Deferred Tax Assets and Liabilities

Components of deferred tax assets and liabilities consist of the following:

(In thousands)	December 31, 2021			December 31, 2020
Deferred tax assets:
Net operating loss carryforwards	$	10,860		$	8,994
Share-based compensation		1,913			1,872
Accounts receivable		7			10
Accrued expenses and other current liabilities		340			330
		13,120			11,206
Valuation allowance		(9,485	)		(7,583	)
		3,635			3,623
Deferred tax liabilities:
Intangible assets		3,771			3,491
Property and equipment		62			132
		3,833			3,623
Net deferred income tax liabilities	$	198		$	-