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Income Taxes
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The provision (benefit) for income taxes for years ended December 31, 2021 and 2020 is as follows (in thousands):
20212020
State income tax provision (benefit)  
Current$28 $51 
Deferred356 (671)
Total state income tax provision (benefit)384 (620)
Federal income tax benefit  
Current— (525)
Deferred(98)(1,942)
Total federal income tax benefit(98)(2,467)
Total income tax provision (benefit)$286 $(3,087)

The Company's income tax returns are subject to examination in the U.S. federal and state jurisdictions. To the extent the Company has unutilized net operating loss (“NOL”) carryforwards, the statute of limitations does not begin to run until the NOL carryforwards are utilized. Therefore, for federal and state tax purposes, the Company has tax years open dating back to 2008. The Company currently has no unrecognized tax benefits, and it is not reasonably possible to estimate the amount by which that could increase in the next twelve months since the timing of examinations, if any, is unknown.
The principal components of deferred taxes at December 31, 2021 and 2020 are as follows (in thousands):
20212020
Deferred tax asset  
Federal NOL carryforward$4,682 $4,373 
California NOL carryforward1,950 2,127 
Inventory80 (121)
Accrued vacation199 153 
Accrued severance— 62 
California alternative minimum tax credit107 107 
Other215 409 
Total deferred tax asset7,233 7,110 
Deferred tax liability  
Property and equipment(6,506)(6,244)
Intangible assets and goodwill(1,475)(1,246)
Other— (97)
Total deferred tax liability(7,981)(7,587)
Net deferred tax liability, non-current$(748)$(477)

As of December 31, 2021, the amount and expiration dates of the Company’s NOL carryforwards are as follows (in thousands):
Federal
Carried forward indefinitely$22,294 
State
2027-2043$28,301 

Under certain circumstances, the ability to use the NOL carryforwards and credits could be substantially reduced if certain changes in ownership were to occur. In order to reduce this possibility, the Company’s certificate of incorporation includes a charter restriction that prohibits transfers of the Company’s common stock under certain circumstances.

On June 29, 2020, California signed AB 85 suspending California NOL utilization for tax year 2020 and 2021 for corporations with net business income of $1 million or more. In the event the Company is precluded from utilizing its NOLs during such years, the Company’s suspended NOLs in California will be extended an additional three years.  

The table below reconciles the expected statutory income tax rate, presented in dollars, to the actual income tax provision (benefit) (in thousands):
20212020
Expected federal income tax expense (benefit)$725 $(1,994)
State income tax expense (benefit)386 (631)
Non-taxable income from PPP loan forgiveness(811)— 
NOL carryback - CARES Act— (182)
True-up to fixed assets— (239)
Other, net(14)(41)
Total$286 $(3,087)