XML 33 R21.htm IDEA: XBRL DOCUMENT
v3.21.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2020
Income Tax Disclosure [Abstract] |
INCOME TAXES | Note 15. INCOME TAXES The provision for (benefit from) income taxes as of December 31, is set forth below:
|  | 2020 |  |  | 2019 |
Current |  |  |  |  |  |
Federal tax refund |  | $ | (1,416,000 | ) |  | $ | - |
State |  |  | 4,000 |  |  |  | 37,000 |
Total (Benefit from) Expense for Income Taxes |  |  | (1,412,000 | ) |  |  | 37,000 |
Deferred Tax Benefit |  |  | - |  |  |  | - |
Valuation Allowance |  |  | - |  |  |  | - |
Net (Benefit from) Provision for Income Taxes |  | $ | (1,412,000 | ) |  | $ | 37,000 |
The following is a reconciliation of our income tax rate computed using the federal statutory rate to our actual income tax rate as of December 31,
|  | 2020 |  |  | 2019 |
U.S. statutory income tax rate |  |  | 21.00 | % |  |  | 21.00 | %
State taxes |  |  | -0.90 | % |  |  | -1.11 | %
Permanent difference, overaccruals, and non-deductible items |  |  | 159.65 | % |  |  | -3.33 | %
Rate change and provision to return true-up |  |  | 197.34 | % |  |  | 0.62 | %
Expired stock options |  |  | 0.00 | % |  |  | 1.54 | %
Deferred tax valuation allowance |  |  | -393.63 | % |  |  | -20.13 | %
Cares Act Refund |  |  | 458.76 | % |  |  | 0.00 | %
Total |  |  | 442.22 | % |  |  | -1.41 | %
The components of net deferred tax assets at December 31, 2020 and 2019 are set forth below:
|  | December 31, |  |  | December 31, |
|  | 2020 |  |  | 2019 |
Deferred tax assets: |  |  |  |  |  |
Current: |  |  |  |  |  |
Net operation loss |  | $ | 6,594,000 |  |  | $ | 8,017,000 |
Allowance for doubtful accounts |  |  | 252,000 |  |  |  | 216,000 |
Inventory - IRC 263A adjustment |  |  | 341,000 |  |  |  | 268,000 |
Stock based compensation - options and restricted stock |  |  | 277,000 |  |  |  | 150,000 |
Capitalized engineering costs |  |  | 336,000 |  |  |  | 323,000 |
Deferred rent |  |  | 4,000 |  |  |  | 12,000 |
Amortization - NTW Transaction |  |  | 495,000 |  |  |  | 442,000 |
Inventory reserve |  |  | 1,250,000 |  |  |  | 1,000,000 |
Deferred gain on sale of real estate |  |  | 132,000 |  |  |  | 84,000 |
Accrued Expenses |  |  | 158,000 |  |  |  | 165,000 |
Disallowed interest |  |  | 1,813,000 |  |  |  | 1,431,000 |
Right of Use Asset |  |  | 292,000 |  |  |  | 329,000 |
Total non-current deferred tax asset before valuation allowance |  |  | 11,944,000 |  |  |  | 12,437,000 |
Valuation allowance |  |  | (9,394,000 | ) |  |  | (10,663,000 | )
Total non-current deferred tax asset after valuation allowance |  |  | 2,550,000 |  |  |  | 1,774,000 |
Deferred tax liabilities |  |  |  |  |  |  |  |
Property and equipment |  |  | (2,150,000 | ) |  |  | (1,628,000 | )
Other |  |  | (400,000 | ) |  |  | (146,000 | )
Total deferred tax liabilities |  |  | (2,550,000 | ) |  |  | (1,774,000 | )
Net deferred tax asset |  | $ | - |  |  | $ | - |
During the years ended December 31, 2020 and 2019, the Company recorded a valuation allowance equal to its net deferred tax assets. The Company determined that due to a recent history of net losses, that at this time, sufficient uncertainty exists regarding the future realization of these deferred tax assets through future taxable income. If, in the future, the Company believes that it is more likely than not that these deferred tax benefits will be realized, the valuation allowances will be reduced or eliminated. With a full valuation allowance, any change in the deferred tax asset or liability is fully offset by a corresponding change in the valuation allowance. At December 31, 2020 and 2019, the Company provided a valuation allowance on its net deferred tax assets of $9,394,000 and $10,663,000, respectively. As of December 31, 2020, the Company had a Federal net operating loss carry forward of approximately $27,576,000, of which $22,461,000 expire in years through 2037 and $5,115,000 that do not expire. State net operating loss carry forwards total approximately $9,458,000 (with effective rates from 5.5% to 10%), expiring in years through 2040. At December 31, 2020 and 2019, the Company had no material unrecognized tax benefits and no adjustments to liabilities or operations were required. The Company does not expect that its unrecognized tax benefits will materially increase within the next twelve months. The Company recognizes interest and penalties related to uncertain tax positions in interest expense. As of December 31, 2020 and 2019, the Company has not recorded any provisions for accrued interest and penalties related to uncertain tax positions. In certain cases, the Company's uncertain tax positions are related to tax years that remain subject to examination by the relevant tax authorities. The Company files federal and state income tax returns in jurisdictions with varying statutes of limitations. The 2017 through 2020 tax years generally remain subject to examination by federal and state tax authorities. As a result of the passage of the CARES Act, the Company received $1,416,000 from the filing of a net operating loss carryback claim. The Company is currently evaluating the impact of other provisions of the CARES Act on its accounting for income taxes and does not believe it has a material impact at this time.

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