Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

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, 2024		December 31, 2023
Deferred tax assets:
Net operating loss carryforwards	$	37,323	$	41,454
Inventory write-down	423		347



Allowance for doubtful accounts	204		87
Lease obligations	5,489		5,867
Stock-based compensation	7,371		6,084
Capitalized research and development costs	14,785		11,530
Debt derivative liabilities	622		772
Charitable contributions	31		3
Accrued compensation	49		56
Total deferred tax assets	66,297		66,200
Deferred tax liabilities:
Depreciation	(949)		(978)
Amortization	(99)		(51)
Right-of-use assets	(3,708)		(4,031)
Contract liabilities	(86)		—
Total deferred tax liabilities	(4,842)		(5,060)
Net deferred tax assets	61,455		61,140
Valuation allowance	$	(61,455)	$	(61,140)

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,
	2024		2023		2022
Federal tax rate	21.0	%	21.0	%	21.0	%
State taxes - net of Federal benefit	1.0		1.5		4.1
Permanent items and other deductions	(16.1)		(8.7)		(7.1)
Other	(2.7)		(0.8)		(0.5)
Valuation allowance	(3.2)		(13.0)		(17.5)
Effective income tax rate	—	%	—	%	—	%