Income Taxes |
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Income Taxes |
Note 6 - Income Taxes The components of income before provision for income taxes were as follows (in thousands):
The components of the Company’s provision for income taxes were as follows (in thousands):
The Company’s effective tax rate differs from the statutory rates as follows:
The income tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities are as follows (in thousands):
Tax Carryforwards As of December 31, 2023, the Company has federal net operating loss (“NOL”) carryforwards of $25.2 million which have no expiration date. The Company has various state NOL carryforwards. The determination of the state NOL carryforwards is dependent upon apportionment percentages and state laws that can change from year to year and impact the amount of such carryforwards. The state NOLs expire at various dates from to . The state and local tax credit carryforwards expire at various dates from 2024 through 2029.In assessing the realizability of deferred tax assets, the Company evaluates whether it is more likely than not that the deferred tax assets will be realized. In the assessment of the valuation allowance, appropriate consideration was given to all positive and negative evidence including current operating results, tax planning strategies and forecasts of future earnings. As of both December 31, 2023 and December 31, 2022, the Company had a valuation allowance of $0.6 million related to foreign tax credits the Company does not expect to utilize as a result of generating income in a jurisdiction with a higher income tax rate than the U.S. Uncertain tax positions The following table summarizes the activity related to the Company’s uncertain tax positions (in thousands):
Included in the balance of unrecognized tax benefits as of December 31, 2023 and December 31, 2022, are zero and less than $0.1 million, respectively, of tax benefits that, if recognized, would result in adjustments to deferred taxes. The Company is subject to income taxes in the U.S. federal jurisdiction, and the various states and local jurisdictions in which it operates. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. The Company’s federal tax filings remain subject to examination for federal tax years 2020 through 2022. The Company’s state and local tax filings remain subject to examination for tax years 2019 through 2022. NOL carryforwards are subject to examination regardless of whether the tax year in which they are generated has been closed by statute. The amount subject to disallowance is limited to the NOL utilized. Accordingly, the Company may be subject to examination for prior NOLs generated as such NOLs are utilized. The Company’s foreign income tax returns prior to fiscal year 2020 are closed and management continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. |