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 Components of Income Tax Expense (Benefit)

The provision (benefit) from income taxes on continuing operations for the years ended December 31, 2022 and 2021 is comprised of the following:

 

 Schedule of Components of Income Tax Expense (Benefit)

    2022     2021  
Current:                
Federal   $ -     $ -  
State     29       (705 )
Total current     29       (705 )
                 
Deferred:                
Federal     -       -  
State     -       -  
Total deferred     -       -  
Provision (benefit) from income taxes   $ 29     $ (705 )
Schedule of Deferred Tax Assets and Liabilities

The tax effects of significant items comprising the Company’s deferred tax assets and (liabilities) as of December 31, 2022 and 2021 are as follows:

 

 Schedule of Deferred Tax Assets and Liabilities

    2022     2021  
Deferred tax assets:                
Federal net operating loss carryforwards   $ 26,713     $ 24,923  
State net operating loss carryforwards     3,639       3,498  
Compensation     2,059       1,844  
Allowances and reserves     395       585  
Intangible assets     3,584       571  
State taxes     987       942  
Credit carryforward     1       2  
163(j) interest     1,279       1,047  
Leases     (3 )     41  
Deferred revenue     94       95  
Capitalized 174     158       -  
Valuation allowance     (38,256 )     (33,170 )
Gross deferred tax assets     650       378  
Deferred tax liability:                
                 
Property and equipment     (650 )     (471 )
Deferred tax liability-net valuation allowance   $ -     $ (93 )
Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the difference between the federal statutory tax rates and the Company’s effective tax rate from continuing operations is as follows:

 

 Schedule of Effective Income Tax Rate Reconciliation

    2022     2021  
Federal statutory rate     21.0 %     21.0 %
State income tax rate, net of Federal tax benefit     3.6 %     4.3 %
Meals and entertainment     (0.4 )%     (0.2 )%
Valuation allowance     (24.7 )%     (25.4 )%
NJ NOL credit sale     0.0 %     9.4 %
Effective tax rate     (0.5 )%     9.1 %
Schedule of Unrecognized Tax Benefits Reserves Roll Forward

The following table summarizes the change in uncertain tax benefit reserves for the two years ended December 31, 2022:

 

 Schedule of Unrecognized Tax Benefits Reserves Roll Forward

    Unrecognized  
    Tax Benefits  
       
Balance of unrecognized benefits as of January 1, 2021   $       877  
Additions for tax positions of prior years     -  
Balance as of January 1, 2022   $ 877  
Additions for tax positions of prior years     -  
Balance as of December 31, 2022   $ 877  
Schedule of Tax Years Subject to Examination

The Company and its subsidiaries file a U.S. Federal consolidated income tax return and consolidated and separate income tax returns in numerous states and local tax jurisdictions. The following tax years remain subject to examination as of December 31, 2022:

 

 Schedule of Tax Years Subject to Examination

Jurisdiction   Tax Years
Federal   2019 – 2022
State and Local   2018 – 2022