Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Provision for Income Tax

Income tax provision for the years ended December 31, 2022 and 2021 is as follows:

	2022			2021
	(in thousands)
Current:
Federal	$	703		$	—
State and local		188			23
Foreign		213			-
Total Current		1,104			23
Deferred:
Federal		(263	)		455
State and local		(78	)		52
Foreign		34			1
Net deferred		(307	)		508
Income tax provision	$	797		$	531

Reconciliation of Provision for Income Taxes

A reconciliation of the provision for income taxes and the amount computed by applying the statutory federal income tax rate to income before income taxes is detailed below:

	2022			2021
	(in thousands)
Tax provision at expected statutory rate	$	544		$	444
State taxes, net of federal benefit		91			75
Permanent differences		83			3
Tax credits		(61	)		(74	)
Foreign tax expense, and other		161			(12	)
Change in rate		—			1
Change in valuation allowance		—			(374	)
Change in uncertain tax positions		—			448
Other		(21	)		20
Provision for income taxes	$	797		$	531
Effective tax rate		30.7	%		25.1	%

Tax Effects of Temporary Differences and Carryforwards

Deferred income taxes for 2022 and 2021 were provided for the temporary differences between the financial reporting basis and the income tax basis of the Company's assets and liabilities. Tax effects of temporary differences and carryforwards at December 31, 2022 and 2021 were as follows:

	December 31, 2022				December 31, 2021
	Deferred Tax				Deferred Tax
	Asset		Liability		Asset		Liability
	(in thousands)
Inventory reserve	$	320	$	—	$	334	$	—
Fixed assets		471		80		—		44
Other reserves and accruals		181		—		181		—
Stock-based compensation		61		—		2		—
Other		84		36		—		15
Tax credit carryforwards		50		—		1,343		—
Federal tax loss carryforwards		—		—		204		—
State tax loss carryforwards		—		—		148		—
Foreign tax loss carryforwards		—		—		34		—
Total deferred income taxes		1,167	$	116		2,246	$	59
Net deferred tax assets	$	1,051			$	2,187

Reconciliation of Unrecognized Tax Benefits

As of December 31, 2022, our unrecognized tax benefits totaled $77,000, and are included within other liabilities in our Consolidated and Combined Balance Sheet. The following table summarizes the activity related to the Company’s unrecognized tax benefits, without interest and penalties:

	2022			2021
	(in thousands)
Balance at January 1	$	448		$	—
Additions for tax positions of prior years		—			419
Additions based on tax positions related to the current year		77			29
Transfer to LGL Group, Inc.		(448	)		—
Balance at December 31	$	77		$	448