Income Taxes

12 Months Ended

Dec. 31, 2020

Income Taxes [Abstract]

Income Taxes

Note 11. Income Taxes

The components of the income tax provision for the years ended December 31, 2020 and 2019 are as follows:

	2020			2019
Current:
Federal	$	(6	)	$	0
State		1			1
Deferred:
Federal		(43	)		(2	)
State		0			0
Total Federal and State Income Taxes	$	(48	)	$	(1	)

The provision for income taxes for the years ended December 31, 2020 and 2019 differs from the amount obtained by applying the U.S. federal income tax rate to pretax income due to the following:

	2020			2019
Computed “Expected” Federal Tax Expense (Benefit From)	$	(36	)	$	39
Increase (Decrease) in Taxes Resulting From:
State Income Taxes, net of Federal Benefit		1			1
R&D Credits		(7	)		(72	)
Permanent Differences		1			5
Other		(7	)		26
Total Federal and State Income Taxes	$	(48	)	$	(1	)

The components of the net deferred tax asset consist of:   

	2020			2019
Deferred Tax Assets:
Vacation accrual	$	29		$	24
Allowance for doubtful accounts		2			2
Stock compensation		94			93
Bonus		0			2
Depreciation and amortization		94			50
Inventory Obsolescence		1			4
R&D credit carryforward		235			171
Valuation allowance		(186	)		(121	)
Total Deferred Tax Assets		269			225
Deferred Tax Liabilities:
Prepaid expenses		23			22
Total Deferred Tax Liabilities		23			22
Net Deferred Tax Asset	$	246		$	203

R&D credits can be carried forward for twenty years for federal purposes and fifteen years in Minnesota.

The Company is materially subject to the following taxing jurisdictions: U.S. and Minnesota. The tax years 2017 through 2019 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, 2020 or December 31, 2020 and uncertain tax positions are not significant.