Income Taxes

12 Months Ended

Dec. 31, 2023

Income Taxes [Abstract]

Income Taxes

Note 12. Income Taxes

The components of the income tax provision are as follows:

	Years Ended December 31
	2023			2022
Current:
Federal	$	201		$	19
State		1			1
Deferred:
Federal		(99	)		(48	)
State		0			0
Total Federal and State Income Taxes	$	103		$	(28	)

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
	2023			2022
Computed “Expected” Federal Tax Expense	$	79		$	15
Increase (Decrease) in Taxes Resulting From:
State Income Taxes, net of Federal Benefit		1			1
R&D Credits		(63	)		0
Permanent Differences		4			2
Other		82			(46	)
Total Federal and State Income Taxes	$	103		$	(28	)

The components of the net deferred tax asset consist of:   

	December 31
	2023			2022
Deferred Tax Assets:
Vacation accrual	$	26		$	25
Allowance for credit losses		2			2
Stock compensation		6			91
Bonus		2			11
Depreciation and amortization		71			94
Inventory obsolescence		2			2
R&D expenses		273			0
R&D credit carryforward		279			313
Valuation allowance		(279	)		(252	)
Total Deferred Tax Assets		382			286
Deferred Tax Liabilities:
Prepaid expenses		27			30
Total Deferred Tax Liabilities		27			30
Net Deferred Tax Asset	$	355		$	256

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 2020 through 2022 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, 2023 or December 31, 2023 and uncertain tax positions are not significant.