INCOME TAX (Tables)

12 Months Ended

Dec. 31, 2021

INCOME TAX

SCHEDULE OF PRETAX INCOME (LOSS)

Pretax income (loss) resulting from domestic and foreign operations is as follows (in thousands):

	2021		2020
United States	$	(18,130)	$	(12,269)
Foreign		6,032		(4,683)
Other Foreign Jurisdictions		1,606		(21)
Total pretax book loss	$	(10,492)	$	(16,973)

SCHEDULE OF COMPONENTS OF INCOME TAX BENEFIT

The components of income tax (benefit) expense at December 31, 2021 and December 31, 2020, are as follows (in thousands):

	2021		2020
Current:
Federal	$	—	$	—
State		62		—
Foreign		2,722		645
Total Current	$	2,784	$	645
Deferred:
Federal	$	—	$	—
State		—		—
Foreign		526		(1,466)
Total Deferred	$	526	$	(1,466)
Total	$	3,310	$	(821)

SCHEDULE OF INCOME TAX RECONCILIATION

The reconciliation of the provision for income taxes at the United States Federal statutory rate compared to the Company’s income tax expense (benefit) as reported is as follows (in thousands)

	2021		2020
Income (Loss) before income taxes		(10,492)		(16,973)
Income tax benefit computed at the statutory rate	$	(2,203)	$	(3,565)
State income taxes-net of federal tax benefit		49		—
Foreign tax rate differential		(107)		99
Loss on debt settlement		788		650
Section 162(m) compensation		168		—
FX Adjustment		(265)		—
GILTI Inclusion		102		—
Non-deductible expenses		(77)		212
Prior period true ups – temporary differences		(35)		525
Rate changes and differentials		2,193		61
Change in valuation allowance		2,697		1,197
	$	3,310	$	(821)

SCHEDULE OF DEFERRED TAX ASSETS

Tax effects of temporary differences at December 31, 2021 and December 31, 2020 are as follows (in thousands):

Deferred tax assets:	2021		2020
Fixed assets	$	13	$	62
Allowance for bad debts		442		281
Inventory		192		82
Accrued expenses		—		—
Deferred revenue		4,232		2,190
Stock compensation		645		300
Others		—		127
Interest Expense Limitation		1,903		955
Net operating loss carry-forwards		8,165		7,361
Deferred tax assets (liabilities)	$	15,592	$	11,358
Valuation allowance		(11,294)		(7,959)
Deferred tax assets, net	$	4,298	$	3,399

Deferred tax liabilities:	2021		2020
Intangible assets	$	(11,452)	$	(10,759)
Accrued expenses		(413)		(404)
Prepaid expenses		(137)		(138)
Others		(745)		—
Deferred tax liabilities	$	(12,747)	$	(11,301)
Deferred tax liabilities, net	$	(8,449)	$	(7,902)