Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) are as follows:

(in thousands)	Year Ended December 31, 2020			Year Ended December 31, 2019
Federal - current	$	(30	)	$	(30	)
State - current		2			1
Total current		(28	)		(29	)

Federal - deferred		(1,171	)		(869	)
State - deferred		(1,524	)		(816	)
Change in valuation allowance		2,695			1,685
Total deferred		-			-
Income tax expense (benefit)	$	(28	)	$	(29	)

Income Tax Reconciliation

The components of pretax income (loss) and the difference between income taxes computed at the statutory federal rate and the provision for income taxes are as follows:

(in thousands)	Year Ended December 31, 2020			Year Ended December 31, 2019

Income (loss) before income taxes	$	(5,632	)	$	(4,955	)
Tax expense (benefit) :
Tax at statutory federal rate	$	(1,182	)	$	(1,041	)
State income taxes		(1,511	)		(643	)
Permanent items, tax credits and other adjustments		(30	)		(30	)
Deferred true-ups		-			-
Change in valuation allowance		2,695			1,685
Income tax expense (benefit)	$	(28	)	$	(29	)

A reconciliation of the United States federal statutory rate to the Company’s effective income tax rate is as follows:

	Year Ended December 31, 2020			Year Ended December 31, 2019
Tax at statutory federal rate		21.0	%		21.0	%
State income taxes		27.0			13.0
Permanent difference, tax credits and other adjustments		0.5			0.6
Deferred true-ups		-			-
Change in valuation allowance		(48.0	)		(34.0	)
Effective income tax rate		0.5	%		0.6	%

Calculation of Net Deferred Tax Assets from NOL Carryforwards

The Company’s deferred tax asset arising primarily from NOL carryforwards at December 31, 2020 and arising primarily from NOL carryforwards and AMT credit carryforwards at December 31, 2019, is as follows:

	December 31, 2020			December 31, 2019
Deferred tax asset	$	38,140,000		$	40,815,000
Valuation allowance		(38,140,000	)		(35,445,000	)
Net deferred tax asset recognized	$	-		$	5,370,000