Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of differences between the carrying amount of assets and liabilities for financial reporting purposes and their respective income tax basis

Deferred income taxes are accounted for using the balance sheet approach, which requires recognition of deferred tax assets and liabilities for the expected future consequences of temporary differences between the financial reporting basis and the tax basis of assets and liabilities, as measured by enacted state and federal tax rates. Deferred tax assets and deferred tax liabilities are as follows:


(in thousands)	December 31, 2023		December 31, 2022
Deferred tax assets:
Net operating loss carryforwards	$	41,454	$	42,716
Inventory write-down	347		503



Allowance for doubtful accounts	87		169
Lease obligations	5,867		5,643
Stock-based compensation	6,084		5,274
Capitalized research and development costs	11,530		6,357
Debt derivative liability	772		1,174
Charitable contributions	3		203
Accrued compensation	56		1,010
Total deferred tax assets	66,200		63,049
Deferred tax liabilities:
Depreciation	(978)		(983)
Amortization	(51)		(17)
Right-of-use assets	(4,031)		(3,744)
Contract liabilities	—		4
Total deferred tax liabilities	(5,060)		(4,740)
Net deferred tax assets	61,140		58,309
Valuation allowance	$	(61,140)	$	(58,309)

Schedule of effective income tax rate reconciliation

The Company’s effective income tax rate differs from the statutory federal income tax rate as follows:


	December 31,
	2023		2022		2021
Federal tax rate	21.0	%	21.0	%	21.0	%
State taxes - net of Federal benefit	1.5	%	4.1	%	5.1	%
Permanent items and other deductions	(8.7)	%	(7.1)	%	(1.6)	%
Other	(0.8)	%	(0.5)	%	0.2	%
Valuation allowance	(13.0)	%	(17.5)	%	(24.7)	%
Effective income tax rate	—	%	—	%	—	%