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INCOME TAXES | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
INCOME TAXES | (11) INCOME TAXES Income tax expense consists of: SCHEDULE OF INCOME TAXES
|  | Current |  |  | Deferred |  |  | Total |
Year Ended December 31, 2020: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Federal |  | $ | — |  |  | $ | — |  |  | $ | — |
State and local |  |  | 11,752 |  |  |  | — |  |  |  | 11,752 |
Foreign |  |  | 14,964 |  |  |  | — |  |  |  | 14,964 |
|  | $ | 26,716 |  |  | $ | — |  |  | $ | 26,716 |
Year Ended December 31, 2021: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Federal |  | $ | — |  |  | $ | — |  |  | $ | — |
State and local |  |  | 32,069 |  |  |  | — |  |  |  | 32,069 |
Foreign |  |  | 31,704 |  |  |  | — |  |  |  | 31,704 |
|  | $ | 63,773 |  |  | $ | — |  |  | $ | 63,773 |
The principal components of deferred tax assets, net, were as follows at December 31: SCHEDULE OF DEFERRED TAX ASSETS
|  | 2021 (As Restated) |  |  | 2020 |
Deferred income tax assets: |  |  |  |  |  |  |  |
Inventories |  | $ | 566,403 |  |  | $ | 241,874 |
Accounts receivable |  |  | 484,728 |  |  |  | 445,392 |
Accrued expenses |  |  | 45,522 |  |  |  | 116,254 |
Net operating loss and tax credit carry forwards |  |  | 15,195,123 |  |  |  | 15,243,998 |
Plant and equipment |  |  | 60,059 |  |  |  | 39,521 |
Stock compensation |  |  | 65,014 |  |  |  | 448,375 |
Lease accounting |  |  | — |  |  |  | 248 |
Other – interest expense |  |  | 74,931 |  |  |  | 24,009 |
Total deferred income tax assets |  |  | 16,491,780 |  |  |  | 16,559,671 |
Valuation allowance |  |  | (16,491,780 | ) |  |  | (16,559,671 | )
Net deferred tax assets |  | $ | — |  |  | $ | — |
As of December 31, 2021, the Company had Federal net operating loss carry forwards of approximately $62.7 million which are available to offset future taxable income. They are due to expire in varying amounts from 2022 to 2040. Federal net operating losses occurring after December 31, 2018, of approximated $14.5 million may be carried forward indefinitely. As of December 31, 2021, the Company had state net operating loss carry forwards of approximately $19.9 million which are available to offset future taxable income. They are due to expire in varying amounts from 2033 through 2040. A valuation allowance has been established for the full amount of net deferred income tax assets as management has concluded that it is more-likely than-not that the benefits from such assets will not be realized. The Federal and state NOLs may be subject to certain limitations under Section 382 of the Internal Revenue Code, which could significantly restrict the Company’s ability to use the NOLs to offset taxable income in subsequent years. The following is a reconciliation of the statutory Federal income tax rate to the actual effective income tax rate for continuing operations: SCHEDULE OF RECONCILIATION OF STATUTORY FEDERAL INCOME TAX RATE
|  | 2021 (As Restated) |  |  | 2020 |
Federal tax (benefit) rate |  |  | 20 | % |  |  | 21 | %
Increase (decrease) in taxes resulting from: |  |  |  |  |  |  |  |
State income taxes |  |  | (2 | ) |  |  | 4 |
Change in valuation allowance |  |  | (5 | ) |  |  | 3 |
Expiration of NOLs |  |  | — |  |  |  | (27 | )
Expiration of stock options |  |  | (14 | ) |  |  | — |
Permanent differences |  |  | (4 | ) |  |  | (5 | )
Changes in Federal and state rates |  |  | 3 |  |  |  | 3 |
Effective income tax rate |  |  | (2 | )% |  |  | (1 | )%
The Company reviews annually the guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in the financial statements. Tax positions must meet a “more-likely-than-not” recognition threshold. At December 31, 2021 and 2020, the Company did no t have any material uncertain tax positions. No interest and penalties related to uncertain tax positions were accrued at December 31, 2021 and 2020. The Company files income tax returns in the U.S., India, and Mexico. Tax years subsequent to 2016 remain subject to examination for both U.S. Federal and state tax reporting purposes. Tax years subsequent to 2015 remain subject to examination for Mexico tax reporting purposes. The foreign income tax reported represents tax on operations for the Company that is located in a special economic zone in Mexico. Other than the Mexico facility, the Company has an India operation and has no other operations in a foreign location. The India operation had no tax obligations as of December 31, 2021.

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- 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 https://asc.fasb.org/extlink&oid=121826272&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 https://asc.fasb.org/extlink&oid=122134291&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 https://asc.fasb.org/extlink&oid=121826272&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 https://asc.fasb.org/extlink&oid=122134291&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 https://asc.fasb.org/extlink&oid=121826272&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 https://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 https://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 https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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