Income Taxes

12 Months Ended

Dec. 31, 2019

Income Taxes [Abstract]

Income Taxes

Note 11. Income Taxes

The components of the income tax provision for the years ended December 31, 2019 and 2018 are as follows:

	2019			2018
Current:
Federal	$	0		$	0
State		1			1
Deferred:
Federal		(2	)		(9	)
State		0			0
Total Federal and State Income Taxes	$	(1	)	$	(8	)

The provision for income taxes for the years ended December 31, 2019 and 2018 differs from the amount obtained by applying the U.S. federal income tax rate to pretax income due to the following:

	2019			2018
Computed “Expected” Federal Tax Expense (Benefit From)	$	39		$	(4	)
Increase (Decrease) in Taxes Resulting From:
State Income Taxes, net of Federal Benefit		1			1
R&D Credits		(72	)		(41	)
Permanent Differences		5			7
Other		26			29
Total Federal and State Income Taxes	$	(1	)	$	(8	)

The components of the net deferred tax asset consist of:   

	2019			2018
Deferred Tax Assets:
Vacation accrual	$	24		$	24
Allowance for doubtful accounts		2			2
Stock compensation		93			91
Bonus		2			0
Depreciation and amortization		50			29
Inventory Obsolescence		4			2
R&D credit carryforward		171			154
Valuation allowance		(121	)		(81	)
Total Deferred Tax Assets		225			221
Deferred Tax Liabilities:
Prepaid expenses		22			20
Net unrealized gain on investments		0			9
Total Deferred Tax Liabilities		22			29
Net Deferred Tax Asset	$	203		$	192

The Company is materially subject to the following taxing jurisdictions: U.S. and Minnesota. The tax years 2016 through 2018 remain open to examination by the Internal Revenue Service and state jurisdictions. We have no accrued interest or penalties related to uncertain tax positions as of January 1, 2019 or December 31, 2019 and uncertain tax positions are not significant.