Income Taxes

12 Months Ended

Dec. 31, 2024

Income Taxes [Abstract]

Income Taxes

Note 10. Income Taxes

The components of the income tax provision are as follows:

	Years Ended December 31,
	2024			2023
Current:
Federal	$	144		$	201
State		1			1
Deferred:
Federal		(155	)		(99	)
State		0			0
Total Federal and State Income Taxes	$	(10	)	$	103

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,
	2024			2023
Computed “Expected” Federal Tax Expense	$	92		$	79
Increase (Decrease) in Taxes Resulting From:
State Income Taxes, net of Federal Benefit		1			1
R&D Credits		(88	)		(63	)
Permanent Differences		4			4
Other		(19	)		82
Total Federal and State Income Taxes	$	(10	)	$	103

The components of the net deferred tax asset consist of:   

	December 31,
	2024			2023
Deferred Tax Assets:
Vacation accrual	$	27		$	26
Allowance for credit losses		2			2
Stock compensation		52			6
Bonus		4			2
Depreciation and amortization		53			71
Inventory obsolescence		2			2
R&D expenses		392			273
R&D credit carryforward		311			279
Valuation allowance		(311	)		(279	)
Total Deferred Tax Assets		532			382
Deferred Tax Liabilities:
Prepaid expenses		31			27
Total Deferred Tax Liabilities		31			27
Net Deferred Tax Asset	$	501		$	355

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 2021 through 2023 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 December 31, 2024 or December 31, 2023 and uncertain tax positions are not significant.