Income Taxes

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

(9)          Income Taxes

Our net income tax provision, including both current and deferred, related to U.S. federal and state income taxes, is a zero.

A reconciliation of income tax expense to the amount computed by applying the Federal income tax rate to loss before provision for income taxes as of December 31, 2020 and 2019 is as follows:

	2020			2019
Income tax credit at statutory rates	$	208		$	(631	)
Nondeductible expenses		5			3
State income tax, net of federal benefits		74			(226	)
Expiration of NOL & Credits		2,543			1,530
Tax basis in excess of book Convertible Debt		—			342
Expiration of Stock Options		122			125
Other		(7	)		—
Change in valuation allowance		(2,945	)		(1,143	)
	$	—		$	—

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred income taxes consist of the following:

	As of December 31,
	2020			2019
Deferred tax liabilities:
Excess tax basis convertible debt	$	(257	)	$	(334	)
Total deferred tax liabilities		(257	)		(334	)
Deferred tax assets:
Net operating loss carryforwards	$	15,597		$	21,912
Inventory and other allowances		23			14
Charitable contribution & other carryforwards		9			1
Excess (tax) book depreciation		375			451
Excess (tax) book amortization		61			59
Share-based compensation		624			693
Other accrued costs		138			127
Total deferred tax assets		16,827			23,257
Less: Valuation allowance		(16,570	)		(22,923	)
Deferred income taxes	$	—		$	—

The valuation allowance decreased approximately $6.4 million and $1.1 million for the years ended December 31, 2020 and 2019, respectively (net of approximately $6.3 million and $1.5 million for the years ended December 31, 2020 and 2019, respectively, for expiring net operating loss carryforwards and credits as well as net operating losses utilized in 2020 to offset taxable income), due principally to the change in the net operating loss carryforward and uncertainty as to whether future taxable income will be generated prior to the expiration of the carryforward period. Under the Internal Revenue Code, certain ownership changes, including the prior issuance of preferred stock and our public offering of common stock, may subject us to annual limitations on the utilization of our net operating loss carryforward. As of December 31, 2020, the amounts subject to limitations have not yet been determined.

On December 31, 2020, we had a net operating loss carryforward of approximately $67 million for income tax purposes. If not utilized, $63 million of this loss carryforward will expire between 2021 and 2037. Given changes to the IRC, net operating loss carryforwards generated after January 1, 2018 do not expire, therefore, $5 million in net operating losses generated since January 1, 2018 do not expire.