Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

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


	December 31,
	2021		2020
Deferred Tax Assets:
Net operating loss	$	23,333	$	17,010
Research and development and other tax credits	6,297		5,920
Share-based compensation	4,220		3,259
Interest limitation carryforward	3,970		2,992
Accrued expenses	3,385		2,918
Accrued settlement costs	235		2,464
Bad debts	601		2,138
Lease obligation	1,277		1,021
Sales return and allowances	195		170
Other	1,115		1,075
Deferred Tax Liabilities:
Prepaid expenses	(1,337)		(1,170)
Property and equipment	(705)		(1,073)
Right of use asset	(1,197)		(895)
Intangible assets	(263)		(160)
Deferred costs of goods sold	—		(43)

Net Deferred Tax Assets	41,126		35,626
Less: Valuation allowance	(41,126)		(35,626)
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,
	2021		2020		2019
Federal statutory rate	21.00	%	21.00	%	21.00	%
State taxes, net of federal benefit	4.53	%	(0.20)	%	(1.36)	%
Nondeductible compensation	(13.77)	%	(0.89)	%	(1.49)	%
Meals and entertainment	(1.13)	%	(0.50)	%	(2.04)	%





Share-based compensation	23.31	%	(1.24)	%	(5.05)	%
Employee retention credit	3.37	%	—	%	—	%
Tax credits	2.01	%	0.32	%	0.45	%
Uncertain tax positions	0.02	%	0.24	%	1.22	%


NOL carryback rate differential	—	%	10.99	%	—	%
Other	10.90	%	(1.66)	%	0.12	%
Valuation allowance	(52.70)	%	(8.14)	%	(12.83)	%
Effective tax rate	(2.46)	%	19.92	%	0.02	%

Schedule of current and deferred income tax expense (benefit)

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


	Year Ended December 31,
	2021		2020		2019
Current:
Federal	$	91	$	(12,418)	$	(53)
State	156		159		48
Total current	247		(12,259)		(5)

Deferred:
Federal	—		—		—
State	—		—		—
Total deferred	—		—		—

Total expense (benefit)	$	247	$	(12,259)	$	(5)

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:


	2021		2020		2019
Unrecognized tax benefits - January 1	$	477	$	627	$	938
Gross increases - tax positions in current period	20		—		56

Decreases in prior year positions	(28)		(150)		(367)
Unrecognized tax benefits - December 31	$	469	$	477	$	627