Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income tax provision (benefit) for the years ended December 31, 2021 and 2020 is as follows:

	2021			2020
	(in thousands)
Current:
Federal	$	860		$	—
State and local		116			31
Foreign		—			50
Total Current		976			81
Deferred:
Federal		3,188			238
State and local		332			(6	)
Foreign		1			32
Total before change in valuation allowance		3,521			264
Change in valuation allowance		(379	)		(9	)
Net deferred		3,142			255
Income tax provision	$	4,118		$	336

Reconciliation of Provision (Benefit) for Income Taxes

A reconciliation of the provision (benefit) for income taxes and the amount computed by applying the statutory federal income tax rate to income before income taxes is detailed below:

	2021			2020
	(in thousands)
Tax provision at expected statutory rate	$	3,939		$	274
State taxes, net of federal benefit		448			31
Permanent differences		(271	)		45
Tax credits		(116	)		(125	)
Tax credit expiration		—			132
Foreign tax expense, and other		(7	)		1
Change in rate		—			(38	)
Change in valuation allowance		(379	)		(9	)
Change in uncertain tax positions		458			—
Provision to return		13			15
Other		33			10
Provision for income taxes	$	4,118		$	336
Effective tax rate		22.0	%		25.8	%

Tax Effects of Temporary Differences and Carryforwards

Deferred income taxes for 2021 and 2020 were provided for the temporary differences between the financial reporting basis and the income tax basis of the Company's assets and liabilities. Tax effects of temporary differences and carryforwards at December 31, 2021 and 2020 were as follows:

	December 31, 2021					December 31, 2020
	Deferred Tax					Deferred Tax
	Asset			Liability		Asset			Liability
	(in thousands)
Inventory reserve	$	345		$	—	$	286		$	—
Fixed assets		—			44		—			58
Other reserves and accruals		262			—		338			—
Unrealized gains on marketable securities		—			1,024		—			27
Stock-based compensation		2			—		8			—
Other		—			6		—			12
Tax credit carryforwards		318			—		1,717			—
Federal tax loss carryforwards		—			—		892			—
State tax loss carryforwards		23			—		252			—
Foreign tax loss carryforwards		34			—		35			—
Total deferred income taxes		984		$	1,074		3,528		$	97
Valuation allowance		—					(379	)
Net deferred tax (liabilities) assets	$	(90	)			$	3,052

Reconciliation of Unrecognized Tax Benefits

As of December 31, 2021, our unrecognized tax benefits totaled $458,000, and are included within other liabilities in our consolidated balance sheet. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2021
	(in thousands)
Balance at January 1	$	—
Additions for tax positions of prior years		429
Additions based on tax positions related to the current year		29
Balance at December 31	$	458