Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of provision for income tax expense

The provision for income tax expense consisted of the following for the years ended December 31, 2022, 2021 and 2020 (in thousands):

	December 31, 2022		December 31, 2021			December 31, 2020
Current:
Federal	$	896	$	72		$	(242	)
State		–		(34	)		10
Total current income tax expense (benefit)		896		38			(232	)
Deferred:
Federal		–		–			–
State		–		–			–
Total deferred income tax expense (benefit)		–		–			–
Income tax expense (benefit)	$	896	$	38		$	(232	)

Schedule of effective income tax rate

The difference between the statutory rate for U.S statutory rate of 21% and the effective income tax rate was as follows:

	December 31, 2022			December 31, 2021			December 31, 2020
Current:
Income taxes at statutory rate		21.0	%		21.0	%		21.0	%
State taxes, net of federal benefit	–			–				–
Non-taxed income		(18.4	)		(21.4	)		(21.5	)
Federal Credits		0.8			1.8			2.3
Share-based compensation		(2.4	)		–			–
Provision to return adjustment	–			–				0.2
Change in valuation allowance		(1.4	)		(1.3	)		(1.1	)
Other		(0.2	)		(0.2	)		–
Effective income tax rate		(0.6	)%		(0.1	)%		0.9	%

Schedule of components of deferred tax assets and liabilities

Components of the Company’s deferred tax assets and liabilities included in the consolidated balance sheet consisted of the following (in thousands):

	December 31, 2022		December 31, 2021
Deferred tax assets:
Accrued compensation	$	678	$	376
Federal credit carryforwards		227		939
Leases		10		28
Share-based compensation		637		–
Research and experimental costs capitalized		3,504		–
Start-up costs		35		39
Deferred tax assets before valuation allowance		5,091		1,382
Valuation allowance		3,332		1,237
Total deferred tax assets	$	1,759	$	145
Deferred tax liabilities:
Intangible assets	$	45	$	90
Fixed assets		1,708		47
Prepaid expenses		6		8
Total deferred income tax liabilities		1,759		145
Net deferred tax asset	$	–	$	–

Schedule of reconciliation of unrecognized tax benefits

A reconciliation of the beginning and ending amount of total unrecognized tax benefits for the years ended December 31, 2022 and 2021 consisted of the following (in thousands):

	December 31, 2022		December 31, 2021
Unrecognized tax benefits (gross):
Benefits at the beginning of the year	$	180	$	–
Increase related to prior year tax positions		9		94
Decrease related to prior year tax positions		–		–
Increase related to current year tax positions		122		86
Benefits at the end of the year	$	311	$	180