Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of reconciliation of income taxes

A reconciliation of income taxes computed at the statutory federal income tax rate to income taxes as reflected in the financial statements is summarized as follows:


	Year Ended December 31,
	2021		2020
Federal income tax expense at statutory rate	(21.0)	%	(21.0)	%
State income tax, net of federal benefit	(4.8)		(5.7)
Permanent differences	(1.8)		1.4
Change in state tax rate	(0.1)		(0.1)
Changes of state net operating losses	2.8		(0.3)
Change in stock options and restricted stock	(4.9)		0.3
Change in valuation allowance	29.8		25.2
Other	—		0.2
Effective tax rate	0.0	%	0.0	%

Schedule of deferred tax assets and liabilities

The Company's deferred tax assets and liabilities for the periods indicated are summarized below:


	December 31,
(In thousands)	2021		2020
Deferred tax assets:
Net operating loss carryforward	$	36,136	$	28,496
Stock options and restricted stock	4,805		5,051
Interest expense	244		220
Inventory reserve	399		272
Allowance for doubtful accounts	17		50
Accrued expenses	1,073		1,190
Deferred revenue	880		5
Leasehold improvements and equipment	74		32
Intangibles	95		85
Operating leases	85		96
	43,808		35,497
Less: Valuation allowance	(43,363)		(35,244)
Total deferred tax assets	445		253
Deferred tax liabilities:
Prepaid expenses	(445)		(253)
Total deferred tax liabilities	(445)		(253)
Net deferred tax assets (liabilities)	$	—	$	—