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]  
Effective Income Tax Rate Reconciliation The difference between income taxes expected at the U.S. federal statutory income tax rate of 21% and the reported income tax expense (benefit) are summarized as follows:

Year Ended December 31,
2022 2021
Income tax (benefit) at statutory rate $ (10,685) $ (11,330)
Valuation allowance 12,894  11,500 
State income tax (benefit), net of federal benefit (2,114) (1,978)
Business tax credit net of reserves (575) (190)
Non-deductible expenses 794  2,210 
Business combination —  (437)
Foreign income taxes at different rate (310) (201)
Income tax expense (benefit) $ 4  $ (426)
Effective tax rate (0.01) % 0.79  %
Provision Expense (Benefit) for Income Taxes The provision expense (benefit) for income taxes consist of the following:

Year Ended December 31,
2022 2021
Current:
Federal $ —  $ — 
State 4  11 
Foreign —  — 
Total current 4  11 
Deferred:
Federal —  (416)
State —  (21)
Foreign —  — 
Total deferred —  (437)
Total income tax (benefit) expense $ 4  $ (426)
Components of Net Deferred Income Taxes The components of net deferred income taxes consist of the following:

December 31,
2022 2021
Deferred tax assets:
Net operating loss $ 47,662  $ 40,922 
Unrealized loss on digital assets 6,754  2,015 
Tax credits 1,940  1,416 
Reserves and accruals 332  732 
Leases - lease liability 1,019  376 
Amortization of acquired intangibles 2,624  232 
Other deferred tax assets 686  1,748 
Gross deferred tax assets 61,017  47,441 
Less valuation allowance (59,057) (46,163)
Total deferred tax assets 1,960  1,278 
Deferred tax liabilities:
Amortization of acquired intangibles —  — 
Leases - right of use asset (931) (306)
Other deferred tax liabilities (1,029) (972)
Total deferred tax liabilities (1,960) (1,278)
Net deferred tax liabilities $ —  $ — 
Reconciliation of Unrecognized Tax Benefits The following is a tabular reconciliation of the total amounts of unrecognized tax benefits:

December 31,
2022 2021
Unrecognized tax benefits, beginning of period $ 1,545  $ 1,314 
Tax positions taken in prior periods:
Gross increases —  — 
Gross decreases —  — 
Tax positions taken in current period:
Gross increases 212  231 
Settlements —  — 
Lapse of statute of limitations —  — 
Unrecognized tax benefits, end of period $ 1,757  $ 1,545