INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income tax (benefit) expense from continuing operations consists of the following:

Income tax (benefit) expense from continuing operations consists of the following:

	Year Ended December 31
	2020			2019
Current year income taxes (benefit):
Federal	$	(9,000	)	$	(45,000	)
State		20,000			20,000
		11,000			(25,000	)
Deferred income taxes:
Federal	$	9,000		$	10,000
		9,000			10,000
Income tax expense (benefit)	$	20,000		$	(15,000	)

The provision for income taxes for continuing operations varied from the federal statutory tax rate as follows:

The provision for income taxes for continuing operations varied from the federal statutory tax rate as follows:

	Year Ended December 31
	2020			2019
Tax at U.S. statutory rate		21.0	%		21.0	%
State income taxes, net of federal benefit		(0.8	)		26.2
Foreign income taxes, net of foreign tax credits		(11.3	)		98.9
Other nondeductible items		(3.3	)		(2.1	)
Effect of increase in uncertain tax positions		—			17.2
Change in valuation allowance		(8.7	)		(181.7	)
Other		2.0			14.0
Effective tax rate		(1.1	%)		(6.5	%)

Deferred tax assets and liabilities as of December 31 related to the following:

Deferred tax assets and liabilities as of December 31 related to the following:

	2020			2019
Deferred tax assets:
Allowance for doubtful accounts	$	26,000		$	29,000
Inventory		798,000			1,254,000
Accrued and prepaid expenses		314,000			302,000
Lease liability		70,000			44,000
Domestic net operating loss carry-forward		3,398,000			2,141,000
Long-term compensation plans		—			248,000
Nonemployee director stock compensation		552,000			514,000
Other stock compensation		82,000			51,000
Intangible assets		—			253,000
Foreign net operating loss carry-forwards and credits		3,261,000			3,087,000
Federal and state credits		767,000			767,000
Other		18,000			17,000
Gross deferred tax assets		9,286,000			8,707,000
Valuation allowance		(8,728,000	)		(8,170,000	)
Net deferred tax assets		558,000			537,000
Deferred tax liabilities
Depreciation		(318,000	)		(485,000	)
Intangible assets		(175,000	)		—
Lease right-of-use asset		(65,000	)		(42,000	)
Net deferred tax liability		(558,000	)		(527,000	)
Total net deferred tax asset	$	—		$	10,000

Changes in the Company’s uncertain tax positions are summarized as follows:

Changes in the Company’s uncertain tax positions are summarized as follows:

	2020		2019
Uncertain tax positions – January 1	$	101,000	$	60,000
Gross increases - current period tax positions		14,000		41,000
Uncertain tax positions – December 31, 2020	$	115,000	$	101,000