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Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income tax expense (benefit) for the years ended December 31, 2022 and 2021 attributable to loss from continuing operations is presented below.
CurrentDeferredTotal
Year ended December 31, 2022
Federal$404 $— $404 
State(13)— (13)
Foreign500 (345)155 
$891 $(345)$546 
Year ended December 31, 2021
Federal$27 $— $27 
State— — — 
Foreign44 (179)(135)
$71 $(179)$(108)

Actual income tax expense (benefit) differs from the “expected” income tax expense (benefit) computed by applying the United States Federal statutory income tax rate of 21% for both 2022 and 2021 to loss from continuing operations before tax (benefit) expense, as follows:
 Year Ended December 31,
 20222021
Income tax benefit at Federal statutory income tax rate
$(710)$(2,447)
Increase (decrease) in income taxes resulting from:
State income tax benefit, net of federal benefit(17)(386)
State research and development, investment credits265 (137)
Non-deductible meals & entertainment8 1 
Non-deductible stock compensation expense133 (194)
Non-deductible compensation under 162(m)7 35 
Prior Period Prepaid Tax276 — 
Foreign Withholding Taxes139 — 
Foreign tax rate differential(3)58 
Federal research and development credits(55)(607)
Uncertain tax positions(99)32 
Provision to tax return adjustments110 33 
Change in valuation allowance530 5,066 
PPP loan forgiveness— (1,455)
Sale of KVH Media Group Entertainment Limited(206)— 
Prior period adjustments— (117)
Other168 10 
     Income tax expense (benefit)$546 $(108)
Loss from continuing operations before income tax expense (benefit) determined by tax jurisdiction, are as follows:
 Year Ended December 31,
 20222021
United States$(4,616)$(11,823)
Foreign1,238 169 
Total$(3,378)$(11,654)
Deferred tax assets and liabilities for the periods presented consisted of the following:
 December 31,
 20222021
Deferred tax assets:
Accounts receivable, due to allowance for doubtful accounts$221 $364 
Inventories1,335 858 
Operating loss carry-forwards4,546 5,784 
Stock-based compensation expense881 1,106 
Property and equipment, due to difference in depreciation283 1,944 
Research and development tax credit carry-forwards5,743 6,247 
Foreign tax credit carry-forwards2,345 2,345 
State tax credit carry-forwards3,710 3,975 
Capitalized research and development5,003 2,690 
Warranty reserve302 255 
Accrued expenses1,486 1,089 
Lease liability483 700 
Gross deferred tax assets26,338 27,357 
Less valuation allowance(22,094)(26,542)
Total deferred tax assets4,244 815 
Deferred tax liabilities:
Purchased intangible assets(39)(199)
Property and equipment, due to differences in depreciation(3,514)(86)
Right of use asset(487)(689)
Total deferred tax liabilities(4,040)(974)
Net deferred tax asset (liability)$204 $(159)
Deferred income tax asset$259 $56 
Deferred income tax liability$(55)$(215)

As of December 31, 2022 the Company has federal and state tax loss carryforwards of approximately $17,731 and $8,974, respectively. The federal loss carryforward has no expiration date. The state losses expire through the year 2042. As of December 31, 2022, the Company had federal research and development tax credit carry-forwards in the amount of $5,734 and other general business credits of $9 that expire in years 2029 through 2042. As of December 31, 2022, the Company had foreign tax credit carry-forwards in the amount of $2,345 that expire in years 2026 through 2027. As of December 31, 2022, the Company had state research and development tax credit carry-forwards in the amount of $4,562 that expire in years 2023 through 2029. The Company also had other state tax credit carry-forwards of $134 available to reduce future state tax expense that expire in years 2023 through 2029.

The Company’s ability to utilize these net operating loss carry-forwards and tax credit carry-forwards may be limited in the future if the Company experiences an ownership change pursuant to Internal Revenue Code Section 382. An ownership change occurs when the ownership percentages of 5% or greater stockholders change by more than 50% over a three-year period.
In assessing the realizability of its net deferred tax assets, the Company considered whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of December 31, 2022, the valuation decreased by $4,448. The change was primarily the result of the utilization of domestic tax credits and net operating losses to offset the gain on discontinued operations as well as the movement in other temporary items. As part of the Company’s analysis, the Company evaluated, among other factors, its recent history of generating tax losses and its near-term forecasts of future taxable income or losses.

As of December 31, 2022, unremitted foreign earnings, which were not significant, have been retained by the Company's foreign subsidiaries for indefinite reinvestment. Upon repatriation of those earnings, in the form of dividends or otherwise, the Company could be subject to state tax and withholding taxes payable to various foreign countries.

The Company establishes reserves for uncertain tax positions based on management’s assessment of exposure associated with tax deductions, permanent tax differences, and tax credits. The tax reserves are analyzed periodically and adjustments are made as events occur that warrant adjustment to the reserve. The Company's policy is to recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense.

The aggregate changes in the total gross amount of unrecognized tax benefits, excluding penalties and interest, are as follows:
 Year Ended December 31,
 20222021
Unrecognized tax benefits as of January 1$1,653 $1,771 
Gross decrease in unrecognized tax benefits - prior year tax positions(160)(104)
Lapse of statute of limitations(11)(14)
Unrecognized tax benefits as of December 31$1,482 $1,653 

All unrecognized tax benefits as of December 31, 2022 and 2021, if recognized, would result in a reduction of the Company's effective tax rate.

The Company recorded interest and penalties of $56 and $46 in its consolidated statement of operations for the years ended December 31, 2022 and 2021, respectively. Total accrued interest and penalties related to tax positions taken on our tax returns and included in non-current income taxes payable was approximately $311 and $255 as of December 31, 2022 and 2021, respectively.

The timing of any resolution of income tax examinations is highly uncertain, as are the amounts and timing of any settlement payment. These events could cause fluctuations in the balance sheet classification of current and non-current assets and liabilities. The Company estimates that it is reasonably possible that the balance of unrecognized tax benefits as of December 31, 2022 may decrease approximately $35 in the next twelve months as a result of a lapse of statutes of limitation and settlements with taxing authorities.
The Company’s tax jurisdictions include the United States, the United Kingdom, Denmark, Cyprus, Norway, Brazil, Singapore, Japan, and India. In general, the statute of limitations with respect to the Company's United States federal income taxes has expired for years prior to 2019, and the relevant state and foreign statutes vary. However, preceding years remain open to examination by United States federal and state and foreign taxing authorities to the extent of future utilization of net operating losses and research and development tax credits generated in each preceding year.