Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.23.1
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of provision for income taxes

The provision for income taxes consists of the following for the years ended December 31, 2022 and 2021 (in thousands):

 

 

 

2022

 

 

2021

 

Current U.S.

 

$

30

 

 

$

25

 

International

 

 

30

 

 

 

 

Deferred U.S.

 

 

 

 

 

 

International

 

 

 

 

 

 

 

 

$

60

 

 

$

25

 

 

Schedule of deferred tax assets and liabilities

Deferred tax assets consisted of the following as of December 31, 2022 and 2021 (in thousands):

 

 

2022

 

 

2021

 

Net operating loss carryforward

 

$

17,978

 

 

$

17,019

 

General business tax credit

 

 

11,837

 

 

 

11,393

 

Stock options

 

 

6,149

 

 

 

5,955

 

Charitable contribution

 

 

37

 

 

 

36

 

Accrued expenses

 

 

380

 

 

 

292

 

Unearned revenue

 

 

2,472

 

 

 

2,393

 

Allowance for bad debt

 

 

442

 

 

 

167

 

Unrealized gain on foreign exchange translation and others

 

 

789

 

 

 

133

 

Section 174 Expenditures

 

 

292

 

 

 

 

Unrealized gain/ (loss) on LT investment

 

 

33

 

 

 

 

Other

 

 

4,130

 

 

 

3,188

 

Total gross deferred tax assets

 

 

44,539

 

 

 

40,576

 

Less valuation allowance

 

 

(44,112

)

 

 

(40,147

)

Net deferred tax assets

 

$

427

 

 

$

429

 

 

Deferred tax liabilities consisted of the following as of December 31, 2022 and 2021 (in thousands):

 

 

 

2022

 

 

2021

 

Unrealized gain on available-for-sale securities

 

$

(426

)

 

$

(427

)

Other

 

 

(1

)

 

 

(2

)

Total deferred tax liabilities

 

$

(427

)

 

$

(429

)

Schedule of income tax provision computed using the statutory federal tax rate

The income tax provision differs from that computed using the statutory federal tax rate of 21% due to the following factors (in thousands):

 

 

 

2022

 

 

2021

 

Tax benefit at statutory federal rate

 

$

(2,242

)

 

$

(3,359

)

State taxes, net of federal tax benefit

 

 

(453

)

 

 

(275

)

Increase (decreases) in valuation allowance

 

 

3,964

 

 

 

2,722

 

Permanent items

 

 

(384

)

 

 

1,337

 

General business tax credit

 

 

(450

)

 

 

(902

)

Other

 

 

(375

)

 

 

502

 

 

 

$

60

 

 

$

25