Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of components of income tax expense (benefit)

Income tax expense (benefit) for the years ended December 31, 2023 and 2022 attributable to loss from continuing operations is presented below.


	Current		Deferred		Total
Year ended December 31, 2023
Federal	$	(8)	$	—	$	(8)
State	12		—		12
Foreign	356		(42)		314
	$	360	$	(42)	$	318
Year ended December 31, 2022
Federal	$	404	$	—	$	404
State	(13)		—		(13)
Foreign	500		(345)		155
	$	891	$	(345)	$	546

Schedule of effective income tax rate reconciliation

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 2023 and 2022 to loss from continuing operations before income tax expense, as follows:


	Year Ended December 31,
	2023		2022
Income tax benefit at Federal statutory income tax rate	$	(3,172)	$	(710)
Increase (decrease) in income taxes resulting from:
State income tax benefit (expense), net of federal benefit	971		(17)
State research and development, investment credits	291		265
Non-deductible meals & entertainment	13		8
Non-deductible stock compensation expense	644		133
Non-deductible compensation under 162(m)	49		7

Prior period prepaid tax	—		276
Foreign withholding taxes	—		139
Foreign tax rate differential	106		(3)
Federal research and development credits	110		(55)
Uncertain tax positions	55		(99)
Provision to tax return adjustments	104		110
Change in valuation allowance	3		530
Goodwill impairment	1,157		—

Sale of KVH Media Group Entertainment Limited	—		(206)


Other	(13)		168
Income tax expense	$	318	$	546

Schedule of loss before income tax, domestic and foreign

Loss from continuing operations before income tax expense determined by tax jurisdiction, are as follows:


	Year Ended December 31,
	2023		2022
United States	$	(9,777)	$	(4,687)
Foreign	(5,327)		1,238
Total	$	(15,104)	$	(3,449)

Schedule of deferred tax assets and liabilities

Deferred tax assets and liabilities for the periods presented consisted of the following:


	December 31,
	2023		2022
Deferred tax assets:
Accounts receivable, due to allowance for doubtful accounts	$	185	$	221
Inventories	1,633		1,335
Operating loss carryforwards	5,179		4,443
Stock-based compensation expense	666		881
Property and equipment, due to difference in depreciation	68		283
Research and development tax credit carryforwards	5,852		5,743
Foreign tax credit carryforwards	2,345		2,345
State tax credit carryforwards	3,378		3,710
Capitalized research and development	5,354		5,003
Warranty reserve	177		302
Accrued expenses	640		1,206
Lease liability	215		483
Gross deferred tax assets	25,692		25,955
Less valuation allowance	(21,835)		(21,711)
Total deferred tax assets	3,857		4,244
Deferred tax liabilities:
Purchased intangible assets	—		(39)
Property and equipment, due to differences in depreciation	(3,386)		(3,514)
Right of use asset	(216)		(487)

Total deferred tax liabilities	(3,602)		(4,040)
Net deferred tax asset	$	255	$	204
Deferred income tax asset	$	256	$	259
Deferred income tax liability	$	(1)	$	(55)

Summary of positions for which significant change in unrecognized tax benefits is reasonably possible

The aggregate changes in the total gross amount of unrecognized tax benefits, excluding penalties and interest, are as follows:


	Year Ended December 31,
	2023		2022
Unrecognized tax benefits as of January 1	$	1,482	$	1,653
Gross decrease in unrecognized tax benefits - prior year tax positions	(418)		(160)

Lapse of statute of limitations	(20)		(11)
Unrecognized tax benefits as of December 31	$	1,044	$	1,482