Income Taxes

12 Months Ended

Dec. 31, 2021

Income Taxes [Abstract]

Income Taxes

Note 11. Income Taxes

The components of the income tax provision for the years ended December 31, 2021 and 2020 are as follows:

	2021		2020
Current:
Federal	$	10	$	(6	)
State		1		1
Deferred:
Federal		38		(43	)
State		0		0
Total Federal and State Income Taxes	$	49	$	(48	)

The provision for income taxes for the years ended December 31, 2021 and 2020 differs from the amount obtained by applying the U.S. federal income tax rate to pretax income due to the following:

	2021			2020
Computed “Expected” Federal Tax Expense (Benefit From)	$	96		$	(36	)
Increase (Decrease) in Taxes Resulting From:
State Income Taxes, net of Federal Benefit		1			1
R&D Credits		(99	)		(7	)
Permanent Differences		4			1
Other		47			(7	)
Total Federal and State Income Taxes	$	49		$	(48	)

The components of the net deferred tax asset consist of:   

	2021			2020
Deferred Tax Assets:
Vacation accrual	$	27		$	29
Allowance for doubtful accounts		2			2
Stock compensation		96			94
Bonus		4			0
Depreciation and amortization		100			94
Inventory Obsolescence		2			1
R&D credit carryforward		220			235
Valuation allowance		(220	)		(186	)
Total Deferred Tax Assets		231			269
Deferred Tax Liabilities:
Prepaid expenses		23			23
Total Deferred Tax Liabilities		23			23
Net Deferred Tax Asset	$	208		$	246

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 2018 through 2020 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, 2021 or December 31, 2021 and uncertain tax positions are not significant.