Registration of securities issued in business combination transactions

INCOME TAXES (Tables)

v3.21.2
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Income tax (benefit) expense from continuing operations consists of the following:

Income tax (benefit) expense from continuing operations consists of the following:

 

                 
    Year Ended December 31  
    2020     2019  
Current year income taxes (benefit):                
Federal   $ (9,000 )   $ (45,000 )
State     20,000       20,000  
 Current year income tax (benefit)     11,000       (25,000 )
                 
Deferred income taxes:                
Federal   $ 9,000     $ 10,000  
 Deferred income taxes (benefit)     9,000       10,000  
                 
Income tax expense (benefit)   $ 20,000     $ (15,000 )
The provision for income taxes for continuing operations varied from the federal statutory tax rate as follows:

The provision for income taxes for continuing operations varied from the federal statutory tax rate as follows:

 

                 
    Year Ended December 31  
    2020     2019  
Tax at U.S. statutory rate     21.0 %     21.0 %
State income taxes, net of federal benefit     (0.8 )     26.2  
Foreign income taxes, net of foreign tax credits     (11.3 )     98.9  
Other nondeductible items     (3.3 )     (2.1 )
Effect of increase in uncertain tax positions           17.2  
Change in valuation allowance     (8.7 )     (181.7 )
Other     2.0       14.0  
Effective tax rate     (1.1 %)     (6.5 %)
Deferred tax assets and liabilities as of December 31 related to the following:

Deferred tax assets and liabilities as of December 31 related to the following:

 

    2020     2019  
Deferred tax assets:                
Allowance for doubtful accounts   $ 26,000     $ 29,000  
Inventory     798,000       1,254,000  
Accrued and prepaid expenses     314,000       302,000  
Lease liability     70,000       44,000  
Domestic net operating loss carry-forward     3,398,000       2,141,000  
Long-term compensation plans           248,000  
Nonemployee director stock compensation     552,000       514,000  
Other stock compensation     82,000       51,000  
Intangible assets           253,000  
Foreign net operating loss carry-forwards and credits     3,261,000       3,087,000  
Federal and state credits     767,000       767,000  
Other     18,000       17,000  
                 
Gross deferred tax assets     9,286,000       8,707,000  
Valuation allowance     (8,728,000 )     (8,170,000 )
                 
Net deferred tax assets     558,000       537,000  
                 
Deferred tax liabilities                
Depreciation     (318,000 )     (485,000 )
Intangible assets     (175,000 )      
Lease right-of-use asset     (65,000 )     (42,000 )
                 
Net deferred tax liability     (558,000 )     (527,000 )
                 
Total net deferred tax asset   $     $ 10,000  
Changes in the Company’s uncertain tax positions are summarized as follows:

Changes in the Company’s uncertain tax positions are summarized as follows:

 

    2020     2019  
Uncertain tax positions – January 1   $ 101,000     $ 60,000  
Gross increases - current period tax positions     14,000       41,000  
Uncertain tax positions – December 31, 2020   $ 115,000     $ 101,000