Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

v3.25.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Components of Provision for Income Taxes
The provision for income taxes consists of the following (amount in thousands):
December 31,
2024 2023
Current provision:
Federal $ —  $ — 
State 85  63 
Total current 85  63 
Deferred expense (benefit):
Federal (998) 135 
State (109) (50)
Total deferred (1,107) 85 
Income tax expense (benefit) $ (1,022) $ 148 
Schedule of Reconciliation of the Statutory U.S. Federal Rate to the Company's Effective Tax Rate
A reconciliation of the statutory U.S. federal rate to the Company’s effective tax rate consists of the following (amount in thousands):
For the Years Ended December 31,
2024 2023
Provision for federal income taxes at statutory rates $ (4,761) 21  % $ (5,006) 21  %
Provision for state income taxes, net of federal benefit (19) —  % (388) 2  %
Change in valuation allowance 252 (1) % 4,785 (20) %
Nondeductible expenses 350 (2) % 10 —  %
Stock compensation adjustments 3,287 (14) % 737 (3) %
Other (131) 1  % 10 —  %
Income tax expense (benefit) $ (1,022) 5  % $ 148  —  %
Effective Tax Rate 4.5% 0.6%  
Schedule of Tax Effects of the Temporary Differences and Carryforwards
The tax effects of the temporary differences and carryforwards that give rise to the deferred tax assets consist of the following (amount in thousands):
December 31,
2024 2023
Deferred tax assets
Net operating loss carryforward $ 12,564  $ 11,376 
Property and equipment 139  112 
Reserves 587  134 
Share based compensation 1,229  3,963 
Interest expense carryforward 173  60 
Research and development credits 35  35 
Lease liability 1,095  1,228 
Basis in partnership 2  2 
Internally developed software 12  — 
Charitable contributions carryover 34  36 
Total deferred tax assets 15,870  16,946 
Deferred tax liabilities    
Intangibles (1,512) (2,693)
Internally developed software —  (499)
Right-of-Use assets (870) (956)
Prepaid expenses (374) (269)
Total deferred tax liabilities (2,756) (4,417)
Valuation allowance (13,162) (12,911)
Deferred tax liability, net $ (48) $ (382)