v3.26.3
Income Taxes as Restated
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes as Restated

(9) Income Taxes as Restated

 

Our net income tax provision, including both current and deferred, related to U.S. federal and state income taxes, is $227. Our current federal and deferred tax expenses are zero.

 

 

A reconciliation of the income tax provision (benefit) to the amount computed by applying the federal statutory income tax rate to income (loss) before income taxes for the years ended December 31, 2024 and 2023 is as follows:

 

  

2024 

(As restated) 

  

2023 

(As restated) 

 
Income tax provision (benefit) at statutory rate  $278   $(1,037)
Over/under accrual of income taxes   (9)   (3)
Nondeductible expenses   5    23 
Record tax credits   (116)   (118)
Permanent tax deduction stock options exercised   (27)   (63)
State income tax, net of federal benefits   179    (187)
Expiration of net operating losses and credits   990    1,468 
Effect of change in deferred tax rate   49    45 
Expiration of stock options   46    60 
Other   (3)   21 
Change in valuation allowance   (1,165)   (203)
   $227   $6 

 

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, 
  

2024 

(As restated) 

  

2023 

(As restated) 

 
Deferred tax liabilities:          
Excess tax depreciation  $(496)  $(477)
ASC 842 operating lease asset   (1,938)   (1,975)
Total deferred tax liabilities   (2,434)   (2,452)
           
Deferred tax assets:          
Net operating loss carryforwards  $10,565   $12,371 
179 Carryforwards   —    245 
163(j) Business interest limitation carryforwards   90    302 
Inventory and other allowances   639    229 
Excess book amortization   60    60 
174 research and experimental expenditures   1,053    902 
Share-based compensation   788    530 
Tax credits   189    118 
ASC 842 Operating Lease Liability   2,520    2,610 
Other accrued costs   293    13 
Total deferred tax assets   16,197    17,380 
           
Less: valuation allowance   (13,763)   (14,928)
Deferred income taxes  $—   $— 

 

The valuation allowance decreased approximately $1.2 million and $0.2 million for the years ended December 31, 2024 and 2023, respectively (net of approximately $8.1 million and $7.1 million for the years ended December 31, 2024 and 2023, respectively, for expiring net operating loss carryforwards and credits) 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, 2024, it has been determined that we are not subject to annual limitations on the utilization of our net operating loss carryforward.

 

We have federal net operating loss carryforwards for tax purposes of approximately $44 million on December 31, 2024. $36 million expire between 2024 and 2037. All net operating loss carryforwards generated after January 1, 2018 do not expire. Therefore, $7.7 million in net operating losses generated since January 1, 2018 do not expire. We have Illinois net loss deduction carryforwards for tax purposes of approximately $18.5 million on December 31, 2024. Due to the provisions of Illinois Public Act 102-0669 signed November 16, 2021, Illinois net loss deductions expire between 2029 and 2039.