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INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Reconciliation of income tax provision The income tax benefit for the years ended December 31, 2020 and 2019 was comprised of the following (in thousands):
For the years ended December 31,
20202019
Current:
Federal$— $— 
State(52)29 
Total current tax expense (benefit)(52)29 
Deferred:
Federal(1)(640)
State(264)(4)
Total deferred tax benefit(265)(644)
Income tax benefit$(317)$(615)
Schedule of effective income tax rate reconciliation A reconciliation of the expected income tax benefit at the federal statutory rate of 21% for the years ended December 31, 2020 and 2019, and the income tax benefit reported in the financial statements is as follows:
For the years ended December 31,
20202019
Amount% of pretax income (loss)Amount% of pretax income (loss)
Income tax benefit at federal statutory rate$(4,746)21.0 %$(3,624)21.0 %
State taxes, net of federal effect(1,391)6.2 (1,142)6.6 
Other permanent differences115 (0.5)43 (0.2)
Stock-based compensation569 (2.5)(274)1.6 
Non-deductible officer compensation (IRC 162(m))— — 1,242 (7.2)
R&D tax credits(242)1.1 (320)1.9 
Other769 (3.6)(241)1.4 
Increase in valuation allowance4,609 (20.4)3,701 (21.5)
Income tax benefit$(317)1.3 %$(615)3.6 %
Schedule of deferred tax assets
The following table summarizes the significant components of the Company's deferred tax assets and liabilities as of December 31, 2020 and 2019 (in thousands):
December 31,
20202019
Deferred tax assets:
Net operating loss carryforwards$5,876 $2,627 
Business credit carryforwards918 620 
Intangible assets756 890 
Stock-based compensation6,470 6,740 
Change to inventory61 268 
Operating lease liabilities1,126 2,866 
Accruals and reserves2,275 383 
17,482 14,394 
Deferred tax liabilities:
Operating lease assets(830)(2,437)
Property and equipment(396)(390)
CanX intangible assets(1,013)(1,054)
Other(29)(172)
(2,268)(4,053)
Valuation allowance(15,371)(10,762)
Net deferred tax liabilities$(157)$(421)
Schedule of Unrecognized Tax Benefits
A reconciliation of the Company's unrecognized tax benefits for the years ended December 31, 2020 and 2019 is provided in the following table (in thousands):
20202019
Balance as of January 1:$— $— 
Increase in current year positions47 — 
Increase in prior year positions119 — 
Decrease in prior year positions— — 
Balance as of December 31:$166 $—