Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.24.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of 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,
2023 2022
Income tax (benefit) at statutory rate (continuing operations) $ (8,800) $ (9,537)
Income tax (benefit) at statutory rate (discontinued operation) (2,277) (1,148)
Valuation allowance 6,319  12,894 
State income tax (benefit), net of federal benefit (1,289) (2,114)
Business tax credit net of reserves 91  (575)
Non-deductible expenses (continuing operations) 4,840  360 
Non-deductible expenses (discontinued operation) 1,123  434 
Foreign income taxes at different rate 22  (310)
Income tax expense (benefit) $ 29  $ 4 
Effective tax rate (0.05) % (0.01) %
Schedule of Provision Expense (Benefit) for Income Taxes
The provision expense (benefit) for income taxes consist of the following:

Year Ended December 31,
2023 2022
Current:
Federal $ —  $ — 
State 29  4 
Foreign —  — 
Total current 29  4 
Deferred:
Federal —  — 
State —  — 
Foreign —  — 
Total deferred —  — 
Total income tax (benefit) expense $ 29  $ 4 
Schedule of Components of Net Deferred Income Taxes
The components of net deferred income taxes consist of the following:

December 31,
2023 2022
Deferred tax assets:
Net operating loss $ 58,913  $ 47,662 
Unrealized loss on digital assets 104  6,754 
Tax credits 1,940  1,940 
Reserves and accruals 62  332 
Leases - lease liability 430  1,019 
Amortization of acquired intangibles 4,726  2,624 
Other deferred tax assets 603  686 
Gross deferred tax assets 66,778  61,017 
Less valuation allowance (65,375) (59,057)
Total deferred tax assets 1,403  1,960 
Deferred tax liabilities:
Amortization of acquired intangibles —  — 
Leases - right of use asset (376) (931)
Other deferred tax liabilities (1,027) (1,029)
Total deferred tax liabilities (1,403) (1,960)
Net deferred tax liabilities $ —  $ — 
Schedule of Reconciliation of Unrecognized Tax Benefits
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits:

December 31,
2023 2022
Unrecognized tax benefits, beginning of period $ 1,757  $ 1,545 
Tax positions taken in prior periods:
Gross increases —  — 
Gross decreases —  — 
Tax positions taken in current period:
Gross increases —  212 
Settlements —  — 
Lapse of statute of limitations —  — 
Unrecognized tax benefits, end of period $ 1,757  $ 1,757