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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2020
Notes to Financial Statements |
Schedule of Income Tax (Benefit) Expense | The components of income taxes for the periods ended December 31, 2020 and 2019 are as follows:
|  | Years Ended December 31,
|  | 2020 |  | 2019
Current: |  |  |  |
Federal |  | $ | (55,676 | ) |  | $ | (54,876 | )
State |  |  | 4,918 |  |  |  | — |
Total Current |  |  | (50,758 | ) |  |  | (54,876 | )
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | — |  |  |  | 199,634 |
State |  |  | — |  |  |  | 74,370 |
Total Deferred |  |  | — |  |  |  | 274,004 |
Income tax (benefit) expense |  | $ | (50,758 | ) |  | $ | 219,128 |
Schedule of Effective Income Tax Rate Reconciliation | Reconciliation of the statutory federal income tax rate to the Company's effective tax rate:
|  | Years Ended December 31,
|  | 2020 |  | 2019
Federal tax at statutory rate |  |  | 21.00 | % |  |  | 21.00 | %
State income tax rate |  |  | 6.98 | % |  |  | 6.98 | %
Remeasurement of deferred taxes |  |  | — |  |  |  | — |
Expenses and credits not benefited |  |  | (27.98 | )% |  |  | 27.51 | %
Provision for taxes |  |  | 0 | % |  |  | 55.49 | %
Schedule of Deferred Tax Assets and Liabilities | On December 31, 2020, the Company released valuation allowance against substantially all deferred tax assets. Significant components of net deferred tax assets are valued approximately as follows:
|  | December 31,
Deferred tax assets: |  | 2020 |  | 2019
Net operating loss carryforwards |  | $ | 4,357,000 |  |  | $ | 4,546,000 |
Credits |  |  | 954,000 |  |  |  | 1,014,000 |
Capitalized research and development costs |  |  | — |  |  |  | — |
Other acquired intangibles |  |  | — |  |  |  | — |
Accruals not currently deductible |  |  | 638,000 |  |  |  | 685,000 |
Depreciation |  |  | 140,000 |  |  |  | 58,000 |
Total deferred tax assets |  |  | 6,090,000 |  |  |  | 6,303,000 |
Valuation allowance for deferred tax assets |  |  | (548,000 | ) |  |  | (626,000 | )
Net deferred tax assets |  |  | 5,542,000 |  |  |  | 5,677,000 |
Deferred tax liability: |  |  |  |  |  |  |  |
Acquired intangibles |  |  | — |  |  |  | (170,000 | )
Net deferred tax assets |  | $ | 5,542,000 |  |  | $ | 5,507,000 |
Schedule of Unrecognized Tax Benefits ("UTBs") | A reconciliation of the beginning and ending amount of unrecognized tax benefits (“UTBs”), excluding interest and penalties, is as follows:
|  | Amount
Beginning balance at January 1, 2020 |  | $ | 1,019,000 |
Decreases in UTBs in prior years |  |  | (32,000 | )
Increases in UTBs in current years |  |  | 77,000 |
Ending balance at December 31, 2020 |  | $ | 1,064,000 |

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