Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

(9)       Income Taxes

Our net income tax provision, including both current and deferred, related to U.S. federal and state income taxes, is zero. A reconciliation of income tax expense to the amount computed by applying the Federal income tax rate to loss before provision for income taxes as of December 31, 2019 and 2018 is as follows:

	2019			2018
Income tax credit at statutory rates	$	(631	)	$	(437	)
Nondeductible expenses		3			4
State income tax, net of federal benefits		(226	)		(156	)
Expiration of NOL & Credits		1,530			1,559
Tax basis in excess of book Convertible Debt		342			0
Expiration of Stock Options		125			179
Other		0			0
Change in valuation allowance		(1,143	)		(1,149	)
	$	—		$	—

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred income taxes consist of the following:

	As of December 31,
	2019			2018
Deferred tax liabilities:
Excess tax basis convertible debt	$	(334	)	$	—
Total deferred tax liabilities		(334	)		—
Deferred tax assets:
Net operating loss carryforwards	$	21,912		$	22,560
Inventory and other allowances		14			35
Charitable contribution carryforwards		1			2
Excess (tax) book depreciation		451			524
Excess (tax) book amortization		59			57
Share-based compensation		693			749
Other accrued costs		127			141
Total deferred tax assets		23,257			24,068
Less:  Valuation allowance		(22,923	)		(24,068	)
Deferred income taxes	$	—		$	—

The valuation allowance decreased approximately $1.1 million and $1.1 million for the years ended December 31, 2019 and 2018, respectively (net of approximately $1.5 million and $1.6 million for the years ended December 31, 2019 and 2018, respectively, for expiring net operating loss carryforwards and credits) due principally to the change in the net operating loss carryforward and uncertainty as to whether future taxable income will be generated prior to the expiration of the carryforward period. Management believes that significant uncertainty exists surrounding the recoverability of deferred tax assets due to our recurring losses.  As a result, the Company has recorded a full valuation allowance against our net deferred tax assets. Under the Internal Revenue Code, certain ownership changes, including the prior issuance of preferred stock and our public offering of common stock, may subject us to annual limitations on the utilization of our net operating loss carryforward. As of December 31, 2019, the amounts subject to limitations have not yet been determined.

We have net operating loss carryforwards for tax purposes of approximately $77 million on December 31, 2019. $72 million expire between 2020 and 2037. All net operating loss carryforwards generated after January 1, 2018 do not expire. Therefore, $5 million in net operating losses generated since January 1, 2018 do not expire.