Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Note 16 - Income Taxes

The following summarizes the benefit for income taxes for the years ended December 31, 2019 and 2018:

	2019			2018
Current:
Federal	$	-		$	-
State and local		15			27
		15			27
Deferred:
Federal		(43	)		(270	)
State and local		(1	)		(3	)
		(44	)		(273	)
Valuation allowance		44			169
Provision for income taxes	$	15		$	(77	)

The benefit for income taxes differs from the amounts computed by applying the applicable Federal statutory rates due to the following for the years ended December 31, 2019 and 2018:

	2019			2018
Provision (benefit) for Federal income taxes at the statutory rate	$	(153	)	$	(297	)
State and local income taxes, net of Federal benefit		11			(11	)
Permanent differences:
Other		84			62
Change in valuation allowance		44			169
Rate differential		-			-
Other		29			-
Provision (benefit) for income taxes	$	15		$	(77	)

Significant components of the Company's deferred tax assets and liabilities are as follows:

	December 31,
	2019			2018
Deferred tax assets:
Allowance for doubtful accounts	$	6		$	11
Inventories		827			771
Intangible		122			112
Share based compensation		192			125
Net operating loss carry forward		5,940			6,109
Depreciation		11			-
Pension liability		30			-
Other		2			2
Total deferred tax assets		7,130			7,130
Deferred tax liabilities:
Depreciation		-			(60	)
Intangible		(4	)		(4	)
Pension liability		-			(1	)
Indefinite life intangibles		(139	)		(122	)
Total deferred tax liabilities		(143	)		(187	)
		6,987			6,943
Valuation allowance		(6,987	)		(6,943	)
Net	$	-		$	-

For the year ended December 31, 2019, the Company had approximately $26,295 and $15,298 of federal and state net operating loss carryovers ("NOL"), respectively, which begin to expire in 2022. Additionally, there are federal NOL carryovers of $1,755 which do not expire.

The change in the valuation allowance for the years ended December 31, 2019 and December 31, 2018 was $44 and $169, respectively.

In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and taxing strategies in making this assessment. The decision to record this valuation allowance was based on management evaluating all positive and negative evidence. The significant negative evidence includes a loss for the current year, a cumulative pre-tax loss for the three years ended December 31, 2019, the inability to carryback the net operating losses, limited future reversals of existing temporary differences and the limited availability of tax planning strategies. The Company expects to continue to provide a full valuation allowance until, or unless, it can sustain a level of profitability that demonstrates its ability to utilize these assets.

The Company had no change in its liability for uncertain tax position during 2019 and no liabilities for uncertain tax positions as of December 31, 2019. ASC 740 discusses the classification of related interest and penalties on income taxes. The Company's policy is to record interest and penalties incurred in connection with income taxes as a component of income tax expense. No interest or penalties were recorded during the years ended December 31, 2019 and 2018.

The Company is required to file U.S. federal and state income tax returns. These returns are subject to audit by tax authorities beginning with the year ended December 31, 2016 or tax years beginning with the year ended December 31,2002 as the Company utilizes net operating losses.