XML 33 R19.htm IDEA: XBRL DOCUMENT
v3.21.1

NOTE 12 - INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2020
Income Tax Disclosure [Abstract] |
INCOME TAXES | Components of income (loss) before taxes:
|  | Year Ended December 31, |
(in thousands) |  | 2020 |  |  | 2019 |
U.S. operations |  | $ | (4,451 | ) |  | $ | (2,518 | )
Foreign operations |  |  | 874 |  |  |  | 1,362 |
Total income (loss) before taxes |  | $ | (3,577 | ) |  | $ | (1,156 | )
Income tax expense (benefit) consists of:
|  | Year Ended December 31, |
(in thousands) |  | 2020 |  |  | 2019 |
Current tax expense (benefit) |  |  |  |  |  |
U.S. federal |  | $ | 0 |  |  | $ | (42 | )
State |  |  | (2 | ) |  |  | 8 |
Foreign |  |  | 389 |  |  |  | 65 |
|  |  | 387 |  |  |  | 31 |
Deferred tax expense (benefit) – U.S. federal |  |  | - |  |  |  | - |
Total income tax expense (benefit) |  | $ | 387 |  |  | $ | 31 |
A reconciliation of our effective income tax and the U.S. federal tax rate is as follows:
|  | Year Ended December 31, |
|  | 2020 |  |  | 2019 |
(in thousands) |  |  |  |  |  |
Statutory tax |  | $ | (751 | ) |  | $ | (243 | )
State and foreign income tax, net of federal income tax benefit |  |  | 151 |  |  |  | (230 | )
Valuation allowance for deferred tax assets |  |  | 1,513 |  |  |  | 568 |
Foreign sourced deemed dividend income |  |  | (394 | ) |  |  | - |
Stock based compensation |  |  | (136 | ) |  |  | (177 | )
Other |  |  | 4 |  |  |  | 113 |
Total income tax expense (benefit) |  | $ | 387 |  |  | $ | 31 |
The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets are presented below:
|  | Year Ended December 31, |
|  | 2020 |  |  | 2019 |
(in thousands) |  |  |  |  |  |
Deferred income tax assets: |  |  |  |  |  |
Allowance for doubtful accounts |  | $ | 10 |  |  | $ | 13 |
Inventory and product return reserves |  |  | 573 |  |  |  | 464 |
Compensation accruals |  |  | 1,973 |  |  |  | 1,723 |
Accrued liabilities |  |  | 179 |  |  |  | 129 |
Book-over-tax depreciation and amortization |  |  | 91 |  |  |  | 25 |
Foreign net operating loss carryforwards |  |  | 53 |  |  |  | 3 |
U.S. net operating loss carryforwards |  |  | 3,739 |  |  |  | 2,904 |
U.S. credit carryforwards |  |  | 2,345 |  |  |  | 2,280 |
|  |  | 8,963 |  |  |  | 7,541 |
Valuation Allowance |  |  | (8,963 | ) |  |  | (7,541 | )
Total Deferred Income Tax Assets |  | $ | - |  |  | $ | - |
The valuation allowance for deferred tax assets increased $1,422,000 and $571,000 during the years ended December 31, 2020 and 2019, respectively. The net deferred tax assets have a full valuation allowance provided due to uncertainty regarding our ability to utilize such assets in future years. This full valuation allowance evaluation is based upon our volatile history of losses and the cyclical nature of our industry and capital spending. Credit carryforwards consist primarily of research and experimental and foreign tax credits. We intend to continue to reinvest foreign earnings of our operating subsidiaries. U.S. net operating loss carryforwards are $17.8 million at December 31, 2020 with expiration years from 2022 to 2034. Utilization of net operating loss and credit carryforwards is subject to certain limitations under Section 382 of the Internal Revenue Code of 1986, as amended. The gross changes in uncertain tax positions resulting in unrecognized tax benefits are presented below:
|  | Year Ended December 31, |
|  | 2020 |  |  | 2019 |
(in thousands) |  |  |  |  |  |
Unrecognized tax benefits, opening balance |  | $ | 348 |  |  | $ | 308 |
Prior period tax position increases |  |  | - |  |  |  | 10 |
Additions based on tax positions related to current year |  |  | 17 |  |  |  | 30 |
Unrecognized tax benefits, ending balance |  | $ | 365 |  |  | $ | 348 |
Historically, we have incurred minimal interest expense and no penalties associated with tax matters. We have adopted a policy whereby amounts related to penalties associated with tax matters are classified as general and administrative expense when incurred and amounts related to interest associated with tax matters are classified as interest income or interest expense. Tax years that remain open for examination include 2017, 2018, 2019 and 2020 in the United States of America. In addition, various tax years from 2002 to 2014 may be subject to examination in the event that we utilize the net operating losses and credit carryforwards from those years in our current or future year tax returns.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration