INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Deferred Tax Assets and Liabilities

At December 31, 2021 and 2020, the components of these temporary differences and the deferred tax asset were as follows:

	As of December 31,
	2021			2020
Deferred Tax Asset
Accrued Expenses	$	104,000		$	22,000
Inventory Allowance		98,000			137,000
Other		5,000			10,000
Operating Lease Liability		1,280,000			1,183,000
Tax effect of NOL carryforward		74,167,000			72,307,000
Depreciation		596,000			355,000
Warranty reserve		5,000			3,000
Gross Deferred Tax Asset		76,255,000			74,017,000
Valuation Allowance		(75,003,000	)		(72,555,000	)
Net Deferred Tax Asset	$	1,252,000		$	1,462,000
Operating lease right-of-use asset, net		(1,231,000	)		(1,287,000	)
Amortization		(21,000	)		(175,000	)
Net Deferred Tax Liability	$	(1,252,000	)	$	(1,462,000	)
Total		—			—

Schedule of Effective Income Tax Rate Reconciliation

The Company’s effective tax rate for the years ended December 31, 2021 and 2020 differs from the statutory rate due to the following (expressed as a percentage of pre-tax income):

	2021				2020
Federal statutory rate		21.0		%		21.0		%
State statutory rate		5.4		%		6.9		%
Permanent tax differences		(3.9	)	%		3.7		%
Derivative/Warrant Revaluation		—		%		(30.9	)	%
Debt Discount		12.7		%		1.6		%
Deferred true-ups		4.9		%		48.9		%
Other		0.7		%		—		%
Change in valuation allowance		(40.8	)	%		(51.2	)	%
		—		%		—		%