Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Our sources of income (loss) and income tax provision (benefit) are as follows (in thousands):

Schedule of Income Tax Provision

	2022			2021
	Years ended
	December 31,
	2022			2021
Income/(loss) from continuing operations before income taxes:
U.S.	$	(1,543	)	$	(1,211	)
Non-U.S.		-			1,190
Total income/(loss) from continuing operations before income taxes:	$	(1,543	)	$	(21	)

Provision (benefit) for taxes:
Current:
Federal	$	764		$	(887	)
State		(6	)		244
Non-U.S.		0			0
Penalties
Total current		756			(643	)
Deferred:
Federal		(661	)		1,139
State		(52	)		220
Non-U.S.		-			-
Total deferred		(698	)		1,359
Noncurrent
Federal		-			-
State		-			-
Non-U.S.		-			-
Total noncurrent		0			0
Total income tax expense (benefit)	$	58		$	716
Effective income tax rate		-3.8	%		-3409.5	%

Schedule of Difference in Tax Provision

The difference between the tax provision at the statutory federal income tax rate and the tax provision attributable to income (loss) from continuing operations before income taxes is as follows (in thousands):

	2022			2021
	Years ended
	December 31,
	2022			2021
Computed expected federal tax benefit (expense)	$	324		$	4
(Decrease) Increase in valuation allowance		0			0
State income, net of federal benefit		(46	)		367
Non-U.S. income taxed at different rates		22			(205	)
Intercompany Gain		0			738
Unrecognized tax benefits		0			0
Other		(241	)		(189	)
Income tax benefit (expense)	$	58		$	716

Schedule of Deferred Tax Assets and Liabilities

	2022			2021
	As of December 31,
	2022			2021
Deferred tax assets:
Net operating losses	$	800		$	136
Depreciation		0			-
Valuation allowance		0			-
Total deferred tax assets	$	800		$	136
Deferred tax liabilities:
Deferred course expenses	$	0		$	(34	)
Intercompany Debts		(1,596	)		(1,596	)
Total deferred tax liabilities		(1,596	)		(1,630	)
Net deferred tax asset (liability)	$	(796	)	$	(1,494	)

Schedule of Unrecognized Tax Benefits

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits:

Schedule of Unrecognized Tax Benefits

	As of December 31,
	2022		2021
Unrecognized tax benefits - January 1	$	309	$	309
Gross increases - tax positions in prior period		—		—
Gross decreases - tax positions in prior period		—		—
Unrecognized tax benefits - December 31	$	309	$	309

Schedule of Liability for Unrecognized Tax Benefits

	2022		2021
	As of December 31,
	2022		2021
Reduction of net operating loss carryforwards	$	—	$	—
Noncurrent tax liability (reflected in Other long-term liabilities)		309		309
Total liability for unrecognized tax benefits	$	309	$	309