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INCOME TAXES | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | 9 - INCOME TAXES Income tax provision is summarized as follows:
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |
Current: |  |  |  |  |  |  |  |
Federal |  | $ | 563,000 |  |  | $ | 318,000 |
State |  |  | 96,000 |  |  |  | 70,000 |
|  |  | 659,000 |  |  |  | 388,000 |
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | (89,000 | ) |  |  | 124,000 |
State |  |  | (37,000 | ) |  |  | 88,000 |
Decrease in valuation allowance |  |  | (1,915,000 | ) |  |  | (212,000 | )
|  |  | (2,041,000 | ) |  |  | - |
Income tax (benefit)provision |  | $ | (1,382,000 | ) |  | $ | 388,000 |
The actual income tax provision differs from the “expected” tax computed by applying the Federal corporate tax rate of 21% to the income before income taxes as follows:
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |
“Expected” income tax benefit |  | $ | 389,000 |  |  | $ | 503,000 |
State tax expense, net of Federal benefit |  |  | 99,000 |  |  |  | 55,000 |
Decrease in valuation allowance |  |  | (1,915,000 | ) |  |  | (212,000 | )
Other |  |  | 45,000 |  |  |  | 42,000 |
Income tax provision |  | $ | (1,382,000 | ) |  | $ | 388,000 |
The tax effects of temporary differences which give rise to significant portions of the deferred taxes are summarized as follows:
|  | December 31, |
|  | 2022 |  |  | 2021 |
Deferred tax assets: |  |  |  |  |  |  |  |
Inventory reserves |  | $ | 1,513,000 |  |  | $ | 1,460,000 |
Allowances for bad debts and returns |  |  | 2,000 |  |  |  | 2,000 |
Accrued expenses |  |  | 23,000 |  |  |  | 22,000 |
Asset valuation reserve |  |  | 539,000 |  |  |  | 539,000 |
Other |  |  | 107,000 |  |  |  | 21,000 |
Total deferred tax assets |  |  | 2,184,000 |  |  |  | 2,044,000 |
Valuation allowance |  |  | - |  |  |  | (1,915,000 | )
|  |  | 2,184,000 |  |  |  | 129,000 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Deferred state taxes |  |  | (137,000 | ) |  |  | (129,000 | )
Total deferred tax liabilities |  |  | (137,000 | ) |  |  | (129,000 | )
Net deferred tax assets |  | $ | 2,047,000 |  |  | $ | - |
As of December 31, 2022, we have $0 in net operating loss carryforwards for federal and state income tax purposes. In assessing the realizability of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. We consider the scheduled reversal of deferred tax assets, the level of historical taxable income and tax planning strategies in making the assessment of the realizability of deferred tax assets. We have identified the U.S. federal and California as our "major" tax jurisdiction. With limited exceptions, we remain subject to IRS examination of our income tax returns filed within the last three (3) years, and to California Franchise Tax Board examination of our income tax returns filed within the last four (4) years.

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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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