Income Taxes

12 Months Ended

Dec. 31, 2022

Income Taxes [Abstract]

Income Taxes

Note 12. Income Taxes

The components of the income tax provision are as follows:

	Years Ended December 31
	2022			2021
Current:
Federal	$	19		$	10
State		1			1
Deferred:
Federal		(48	)		38
State		0			0
Total Federal and State Income Taxes	$	(28	)	$	49

The provision for income taxes differs from the amount obtained by applying the U.S. federal income tax rate to pretax income due to the following:

	Years Ended December 31
	2022			2021
Computed “Expected” Federal Tax Expense	$	15		$	96
Increase (Decrease) in Taxes Resulting From:
State Income Taxes, net of Federal Benefit		1			1
R&D Credits		0			(99	)
Permanent Differences		2			4
Other		(46	)		47
Total Federal and State Income Taxes	$	(28	)	$	49

The components of the net deferred tax asset consist of:   

	December 31
	2022			2021
Deferred Tax Assets:
Vacation accrual	$	25		$	27
Allowance for doubtful accounts		2			2
Stock compensation		91			96
Bonus		11			4
Depreciation and amortization		94			100
Inventory Obsolescence		2			2
R&D credit carryforward		313			220
Valuation allowance		(252	)		(220	)
Total Deferred Tax Assets		286			231
Deferred Tax Liabilities:
Prepaid expenses		30			23
Total Deferred Tax Liabilities		30			23
Net Deferred Tax Asset	$	256		$	208

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 2019 through 2021 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, 2022 or December 31, 2022 and uncertain tax positions are not significant.