Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):


		December 31,
		2020		2019
Deferred Tax Assets:
	Net operating loss	$	17,010	$	14,350
	Research and development and other tax credits	5,920		2,349
	Share-based compensation	3,259		3,439
	Interest limitation carryforward	2,992		839
	Accrued expenses	2,918		3,759
	Accrued settlement costs	2,464		3,276
	Bad debts	2,138		4,859
	Lease obligation	1,021		1,044
	Sales return and allowances	170		659
	Other	1,075		1,285
Deferred Tax Liabilities:
	Prepaid expenses	(1,170)		(1,189)
	Property and equipment	(1,073)		(1,582)
	Right of use asset	(895)		(868)
	Intangible assets	(160)		(389)
	Deferred costs of goods sold	(43)		(322)
	Unearned insurance refund	—		(894)
Net Deferred Tax Assets		35,626		30,615
	Less: Valuation allowance	(35,626)		(30,615)
Net Deferred Tax Assets after Valuation Allowance		$	—	$	—

Reconciliation of the Federal statutory income tax

The reconciliation of the federal statutory income tax rate of 21% to the effective rate is as follows:


	Year ended December 31,
	2020		2019		2018
Federal statutory rate	21.00	%	21.00	%	21.00	%
State taxes, net of federal benefit	(0.20)	%	(1.36)	%	3.52	%
Nondeductible compensation	(0.89)	%	(1.49)	%	(15.33)	%
Meals and entertainment	(0.50)	%	(2.04)	%	(24.16)	%





Share-based compensation	(1.24)	%	(5.05)	%	10.82	%
Tax credits	0.32	%	0.45	%	19.75	%
Uncertain tax positions	0.24	%	1.22	%	(2.35)	%
Write-off of net operating losses	—	%	—	%	(11.81)	%
Fixed asset adjustment	—	%	—	%	5.33	%
NOL carryback rate differential	10.99	%	—	%	—	%
Other	(1.66)	%	0.12	%	(1.03)	%
Valuation allowance	(8.14)	%	(12.83)	%	(788.33)	%
Effective tax rate	19.92	%	0.02	%	(782.59)	%

Schedule of current and deferred income tax expense (benefit)

Current and deferred income tax (benefit) expense is as follows (in thousands):


	December 31,
	2020		2019		2018
Current:
Federal	$	(12,418)	$	(53)	$	614
State	159		48		427
Total current	(12,259)		(5)		1,041

Deferred:
Federal	—		—		19,452
State	—		—		6,089
Total deferred	—		—		25,541

Total (benefit) expense	$	(12,259)	$	(5)	$	26,582

Reconciliation of unrecognized tax benefits

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in thousands) included in other liabilities in the consolidated balance sheets:


	2020		2019		2018
Unrecognized tax benefits - January 1	$	627	$	938	$	847
Gross increases - tax positions in current period	—		56		91

Decreases in prior year positions	(150)		(367)		—
Unrecognized tax benefits - December 31	$	477	$	627	$	938