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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Schedule of Current and Deferred Income Tax Provision (Benefit) | For each of the years ended December 31, 2020 and 2019, current tax provisions and current deferred tax provisions were recorded as follows:
|  | Years ended December 31, |
|  | 2020 |  |  | 2019 |
Current Tax Provision |  |  |  |  |  |  |  |
Federal |  | $ | - |  |  | $ | - |
State |  |  | (14,000 | ) |  |  | (25,000 | )
Foreign |  |  | 5,000 |  |  |  | 2,000 |
|  |  | (9,000 | ) |  |  | (23,000 | )
Deferred Tax Provision |  |  |  |  |  |  |  |
Federal |  |  | - |  |  |  | - |
State |  |  | (12,000 | ) |  |  | 2,000 |
Foreign |  |  | 27,000 |  |  |  | (6,000 | )
|  |  | 15,000 |  |  |  | (4,000 | )
Total Tax Provision |  |  |  |  |  |  |  |
Federal |  |  | - |  |  |  | - |
State |  |  | (26,000 | ) |  |  | (23,000 | )
Foreign |  |  | 32,000 |  |  |  | (4,000 | )
|  | $ | 6,000 |  |  | $ | (27,000 | )
Schedule of Deferred Tax Assets and Liabilities | The net deferred tax assets and liabilities have been reported in other liabilities in the consolidated balance sheets at December 31, 2020 and 2019 as follows:
|  | As of December 31, |
|  | 2020 |  |  | 2019 |
Deferred Tax Assets: |  |  |  |  |  |  |  |
NOL carryforwards |  | $ | 1,873,000 |  |  | $ | 14,730,000 |
UK NOL carryforwards |  |  | 572,000 |  |  |  | 552,000 |
Allowance for doubtful accounts |  |  | 193,000 |  |  |  | 92,000 |
Compensation and vacation accrual |  |  | - |  |  |  | 57,000 |
Operating accruals |  |  | - |  |  |  | 6,000 |
Research and experimentation, AMT and foreign tax credits |  |  | 126,000 |  |  |  | 126,000 |
Texas margin tax credit |  |  | 91,000 |  |  |  | 106,000 |
Fixed assets and intangibles |  |  | 397,000 |  |  |  | - |
Lease liabilities |  |  | 9,000 |  |  |  | 854,000 |
Other |  |  | 704,000 |  |  |  | 846,000 |
Total gross deferred tax assets |  |  | 3,965,000 |  |  |  | 17,369,000 |
Valuation allowance |  |  | (3,516,000 | ) |  |  | (16,218,000 | )
Net deferred tax assets |  |  | 449,000 |  |  |  | 1,151,000 |
Deferred Tax Liabilities: |  |  |  |  |  |  |  |
Capitalized software |  |  | 354,000 |  |  |  | 497,000 |
Right of use assets |  |  | 10,000 |  |  |  | 544,000 |
Fixed assets and intangibles |  |  | - |  |  |  | 45,000 |
Foreign |  |  | 47,000 |  |  |  | 47,000 |
Other |  |  | 4,000 |  |  |  | - |
Total gross deferred liabilities |  |  | 415,000 |  |  |  | 1,133,000 |
Net deferred taxes |  | $ | 34,000 |  |  | $ | 18,000 |
Schedule of Reconciliation of Expected Income Taxes | The reconciliation of computed expected income taxes to effective income taxes by applying the federal statutory rate of 21% is as follows:
|  | As of December 31, |
|  | 2020 |  |  | 2019 |
Tax at federal income tax rate |  | $ | 930,000 |  |  | $ | 424,000 |
State provision |  |  | (26,000 | ) |  |  | (23,000 | )
Foreign tax differential |  |  | 35,000 |  |  |  | (2,000 | )
Change in valuation allowance |  |  | (939,000 | ) |  |  | (429,000 | )
Permanent items |  |  | 6,000 |  |  |  | 3,000 |
Total Provision |  | $ | 6,000 |  |  | $ | (27,000 | )

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
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